Repco Home Finance Shows Positive Financial Performance in Q2 2024 Despite 'Sell' Call

Repco Home Finance, a smallcap company in the housing finance industry, has recently announced its financial results for the quarter ending September 2024. The company has received a 'Sell' call from MarketsMOJO, a leading financial analysis platform.

Despite this, Repco Home Finance has shown positive financial performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 7 to 8 in the last 3 months, indicating a positive trend.

One of the key factors contributing to this positive trend is the company's net sales, which have been consistently growing in the last five quarters and reached a record high of Rs 415.25 crore in the September 2024 quarter. This shows a strong sales trend in the near term.

Similarly, the company's operating profit (PBDIT) has also been on a steady rise, reaching a high of Rs 388.86 crore in the September 2024 quarter. This indicates a positive trend in the company's near term operating profit.

Moreover, Repco Home Finance has also shown improvement in its operating profit margin, reaching a high of 93.64% in the last five quarters. This indicates an increase in the company's efficiency.

In terms of profitability, the company's profit before tax (PBT) has reached a high of Rs 140.03 crore in the last five quarters, showing a positive trend in the near term. Similarly, the company's profit after tax (PAT) has also reached a high of Rs 115.13 crore, indicating a positive trend in the near term.

Furthermore, Repco Home Finance has also shown an increase in its earnings per share (EPS), reaching a high of Rs 18.40 in the last five quarters. This indicates that the company has been able to generate higher earnings for its shareholders.

On the other hand, there are some areas that need improvement for Repco Home Finance. The company's operating cash flow has been consistently falling in the last three years, reaching a low of Rs -684.51 crore in the last fiscal year. This indicates a decline in the company's cash revenues from business operations.

Additionally, the company's non-operating income has increased in the last five quarters, reaching a high of Rs 8.94 crore. However, this may not be sustainable as it comes from non-business activities.

In conclusion, Repco Home Finance has shown positive financial performance in the September 2024 quarter, with strong sales and operating profit trends. However, the company needs to focus on improving its operating cash flow and ensuring sustainable non-operating income. Investors should carefully consider these factors before making any investment decisions.