Housing and Urban Development Corporation (NSE: HUDCO) is in discussion with the Maharashtra Government to take infra projects up to ₹40,000 crores.
Mini Ratna PSU company HUDCO gained nearly 40% in the last two weeks reaching from ₹162 to ₹226. The company has experienced minor retracement and finally closed this week at ₹200.15 making a bullish Pin Bar candle on daily chart.
Companies like HUDCO can benefit a lot from India’s growing economy as infrastructure and economy move together. The Indian government also focused on better housing plans for the middle class in its recently announced budget which can further boost infrastructure companies.
HUDCO rises by over 165%
Shares of HUDCO have risen by almost 167% in the last three months. This leading housing finance company’s fundamentals seem quite good which is an important factor behind its rise.
HUDCO has shown consistent growth in net profit and EBITDA which can be studied from their financial statements. This tells us that they are above to manage operations and at the same time able to increase earnings too.
The company’s EBITDA margin is also high, meaning they are efficiently converting revenue to profits.
HUDCO is also attracting a lot of institutional and foreign investors. When these big money investors want to own more shares, it’s a sign they see potential for future growth.
About HUDCO
Public sector company HUDCO provides finance and technical assistance for housing and urban infrastructure projects. They offer loans to private developers, development authorities and other agencies for the construction and promotion of housing and urban infrastructure across India.
HUDCO also offers consultancy services to central, state and local governments for evaluation and implementation of urban development plans.
Headquartered in New Delhi it was founded on 25 April 1970. Sanjay Kulshrestha is Chairperson and MD of HUDCO.
Important supports for HUDCO
HUDCO’s key support level of ₹170 will act as a strong demand zone. When the stock reaches this level another bullish moment can be expected. Another important support level is ₹142 which is further below.
Failing to sustain near level ₹170 may result in further down move in HUDCO and ₹142 may act as next support level.
HUDCO Swing Trading Targets for shortterm
| Forecast | Value in ₹ |
|---|---|
| Forecast 1 | 213 |
| Forecast 2 | 222 |
| Forecast 3 | 232 |
| Forecast 4 | 246 |
HUDCO's Profit growth over years
| Time Period | Profit Growth |
|---|---|
| 1 YEAR | -0.87% |
| 3 YEAR | -0.13% |
| 5 YEAR | 10.99% |
HUDCO's Return on equity over years
| Time Period | ROE% |
|---|---|
| 1 YEAR | 11.38% |
| 3 YEAR | 12.05% |
| 5 YEAR | 12.42% |
HUDCO ROCE over years
| Time Period | ROCE% |
|---|---|
| 1 YEAR | 8.81% |
| 3 YEAR | 9.14% |
| 5 YEAR | 9.11% |
Promoters holding in HUDCO
| DATE | PROMOTER % | PLEDGE % |
|---|---|---|
| Dec 2023 | 75.17 | 0 |
| Sep 2023 | 81.81 | 0 |
| Jun 2023 | 81.81 | 0 |
| Mar 2023 | 81.81 | 0 |
| Dec 2022 | 81.81 | 0 |
HUDCO dividend history
| EX DATE | RECORD DATE | DIVIDEND % | Amount Rs. | TYPE |
|---|---|---|---|---|
| 08 Sep 2023 | 08 Sep 2023 | 31 | 3.1 | Final |
| 21 Mar 2023 | 22 Mar 2023 | 7.5 | 0.75 | Interim |
| 15 Sep 2022 | 16 Sep 2022 | 27.5 | 2.75 | Final |
| 29 Mar 2022 | 30 Mar 2022 | 7.5 | 0.75 | Interim |
| 16 Sep 2021 | 18 Sep 2021 | 14.25 | 1.425 | Final |
Final words
This elaborate article will help you understand HUDCO’s current financial position. The company is well positioned to grow from India’s growing economy.
Support from Government will further support this sector. Investors should keep in check company’s financials from time to time for long term investing.
Price targets of 2x are not unreaslistic for the company, but investors should be aware that it might take some time till Housing and Urban Development Corporation reaches such ambitious
targets
