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HomeSHARE MARKET₹338 Government Share; More Than 170% Return Share; 490% Return In 12...

₹338 Government Share; More Than 170% Return Share; 490% Return In 12 Months

Housing & Urban Development Corporation Ltd (NSE: HUDCO): The stock of public sector firm Housing & Urban Development Corporation Ltd (HUDCO) continues to rise.

Brokerage firm has initiated coverage on Housing & Urban Development Corporation Ltd and has given a “buy” rating with a price target of ₹375. 

This means it will likely rise by 15% by Friday’s closing price. Earlier at the beginning of the year, a brokerage also initiated coverage on the stock. The stock has risen by more than 490% in the last 12 months.

Brokerage firm has described HUDCO as a special financier in the social housing and urban infrastructure space. The brokerage firm said it has good coordination with the state and its agencies, giving it a better opportunity to lend to these institutions.

Why Is The Stock Expected To Rise?

Housing & Urban Development Corporation Ltd has not given loans to the private sector since 2013 and has also made 100% provision on the old NPAs of this sector.

Nirmal Bang expects credit costs to remain low as 97.5% of its loan book is held by the central and state governments, which is a stable asset class. 

This will increase the company’s return on assets (ROA). “Most of the exposure is to the government, so the risk is reduced to some extent,” the brokerage firm said.

Housing & Urban Development Corporation Ltd has also been recently granted “Navratna” status and is on its way to becoming an NBFC from a housing finance company.

Reports also suggest that Housing & Urban Development Corporation Ltd has applied to the Ministry of Finance for inclusion under Section 54EC of the Income Tax Act. 

If implemented, the cost of borrowing will be further reduced.

The brokerage firm expects Housing & Urban Development Corporation Ltd’s net interest margin to increase from the current 3.2% to 3.5% by FY26 due to loan growth in the urban infrastructure segment. This can lead to better yield and low-cost borrowing.

How Much Upside So Far This Year?

As per the latest category changes of shares by AMFI, Housing & Urban Development Corporation Ltd will also be classified as a “midcap” share from its earlier “smallcap” category. 

Elara had earlier put a price of Rs 297 on Housing & Urban Development Corporation Ltd Coverage was initiated with a target price of Rs 350, which was later revised to Rs 350 at the end of June.

Housing & Urban Development Corporation Ltd shares have gained 6.3% to Rs 349. The stock is up 170% so far in 2024.

Housing & Urban Development Corporation Ltd Stock Performance

Current Price₹ 333
52-wk High₹ 350 
52-wk Low₹ 57.8
5 Days Return18.30%
1 Month Return25.38%

Key Fundamentals Parameters

Market Cap₹ 66,673 Cr.
Stock P/E31.5
Book Value₹ 83.0
Dividend1.19 %
ROCE9.24 %
ROE13.2 %
Face Value₹ 10.0
P/B Value4.06
OPM98.3 %
EPS₹ 10.6
Debt₹ 73,996 Cr.
Debt to Equity4.45

Housing & Urban Development Corporation Shareholding Pattern

Promoters Holding
Mar 202381.81%
June 202381.81%
Sept 202381.81%
Dec 202375.17%
Mar 202475.00%
FII Holding
Mar 20230.30%
Jun 20230.32%
Sep 20230.65%
Dec 20231.20%
Mar 20241.91%
DII Holding
Mar 20237.29%
Jun 20237.17%
Sep 20237.15%
Dec 202311.80%
Mar 202411.39%
Hot Stocks Alert Join
Public Holding
Mar 202310.61%
Jun 202310.69%
Sep 202310.41%
Dec 202311.83%
Mar 202411.70%

Housing & Urban Development Corporation Ltd Share: Last 5 Years’ Financial Condition

Last 5 Years’ Sales:

2020₹ 7,567 Cr
2021₹ 7,267 Cr
2022₹ 6,986 Cr
2023₹ 7,082 Cr
2024₹ 7,784 Cr

Last 5 Years’ Net Profit:

2020₹ 1,708 Cr
2021₹ 1,578 Cr
2022₹ 1,716 Cr
2023₹ 1,701 Cr
2024₹ 2,117 Cr

Conclusion

This article provides a detail guide about Housing & Urban Development Corporation Ltd share.

The information and forecasts provided result from the analysis of our research team, the company’s basics and history, experience and various technical analyses. 

Also, we’ve talked in depth about the shares’ prospects and growth possibilities.

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Disclaimer: The information on this site is only for informational and educational purposes and shouldn’t be considered financial advice or stock recommendations. 

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