A leading infrastructure financing powerhouse is set to make significant waves in the maritime development sector. The organization has strategically aligned with a pivotal government joint venture, exploring a potential investment of Rs. 25,000 crore in port development. This collaboration promises to reshape coastal infrastructure and drive public-private partnership initiatives.
Share Price Movement
The share price of HUDCO Limited went up 1.42 percent to Rs. 230 per share on Thursday, an increase from its previous close of Rs. 227.46 per share. The market capitalisation now stands at approximately Rs. 45,443 crore as of January 23, 2025.
Recent Update
HUDCO signed an agreement with Vadhvan Port Project Limited (VPPL), a joint venture between the Government of India and the Government of Maharashtra, to explore and potentially provide up to Rs. 25,000 crore for developing new ports and public-private partnership projects for VPPL.
Guidance
HUDCO’s board has approved raising its FY25 borrowing plan to Rs. 55,000 crore, up from Rs. 40,000 crore. Additionally, the company has announced an interim dividend of Rs. 2.05 per share.
Q3 – Financial Highlights (Recent Update)
The company achieved a 42% YoY growth in net profit and 47% YoY growth in Net Interest Income (NII) for FY25 Q3, with loan sanctions increasing 5x. Its loan book rose 41% to Rs. 1,18,931 Cr, while net NPA improved significantly from 0.49% to 0.27%, reflecting exceptional asset quality and robust risk management, positioning it as the best in the industry.
Competitors
HUDCO faces competition from key players in India’s housing finance sector, including HDFC, Bajaj Housing Finance, LIC Housing Finance, PNB Housing Finance, and Can Fin Homes. These firms significantly influence the market dynamics and financial metrics.
HUDCO has a P/E of 18.47, the which is less than industry P/E of is at 20.38.
Market Outlook
The housing finance sector in India is on track for growth, driven by government initiatives like PM Awas Yojana and significant infrastructure investments, including Rs. 11.11 Lakh Crore for FY 2024-25. Urbanisation and affordable housing demand are key drivers, with policies focusing on sustainable mobility, smart cities, and transit-oriented development. Challenges include bridging housing supply gaps and meeting infrastructure fund requirements. The sector’s multiplier effect on GDP underscores its role in India’s ambition to achieve $5 trillion by 2025 and $30 trillion by 2047.
Written By Fazal Ul Vahab C H
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