India Equity Value investor, Trivikram Consultants

Prashant Vaishampayan

India Equity Value investor

Picking Long Term Multi-bagger stocks

Trivikram Consultants

Trivikram Consultants is an equity research service founded by Prashant Vaishampayan, a registered Research Analyst with SEBI in India. Prashant has done equity research since 1992.  He worked with Jardine Fleming, SG Securities, UBS and Kotak Securities. Since 2010, he is managing his portfolio and doing outsourced equity research for institutional clients. A team of six professionals helps him in equity research. We focus on pharma, agro-chemicals, auto and auto components, banks and financial services, specialty chemicals and niche manufacturing sectors.   

Equity Bottom-Up

<ul>
<li>We have noted increased interest rates for medium-term bonds in India. The yield on 2-year GOI bond has moved to 7.93% as of 28th September 2018 from 6.78% as of 1st January 2018. We think the rates may stay at elevated levels for the next 6-9 months. </li>
<li>This increase in interest rates will have an implication for all housing finance companies and NBFCs. Their performance will be impacted due to likely changes in variables such as-
<ul>
<li>The volume of loans</li>
<li>Cost of funds</li>
<li>Yield</li>
<li>Non-performing assets</li>
</ul>
</li>
<li>Based on this, we revise our fair value estimate for <a href="https://www.smartkarma.com/entities/9677" target="_blank" data-smartkarma-citation="entities:9677:1">Repco Home Finance (REPCO IN)</a> from Rs. 640 (as per our last <a href="https://www.smartkarma.com/insights/repco-home-finance-ltd-the-tale-of-concentrated-portfolio" target="_blank">report</a> dated 7th September 2018) to Rs.550 for the next 12 months</li>
</ul>


We have noted increased interest rates for medium-term bonds in India. The yield on 2-year GOI bond has moved to 7.93% as of 28th September 2018 from 6.78% as of 1st January 2018. We think the rates may stay at elevated levels for the next 6-9 months. 
This increase in interest rates will have an implication for all housing finance companies and NBFCs. Their performance will be impacted due to likely changes in variables such as-

The volume of loans
Cost of funds
Yield
Non-performing assets


Based on this, we revise our fair value estimate for Repco Home Finance (REPCO IN) from Rs. 640 (as per our last report dated 7th September 2018) to Rs.550 for the next 12 months


REPCO Home: Rising Interest Rates, Lower Fair Value Estimate