Housing & Urban Development Corporation Ltd is primarily engaged in the business of financing and urban development activities in India.
With a market capitalization of Rs 22,026.91 Crores, the shares of Housing & Urban Development Corporation Ltd (HUDCO) were trading at Rs 110.03 a share, a decrease of 0.97 percent from the previous closing price of Rs 111.12 a share.
Over the course of fifty years in business, HUDCO has grown to become a significant force in the housing industry. As of March 31, 2023, HUDCO has provided financial support for the construction of 8.46 million residential units nationwide through its project financing window.
Year to date, the Miniratna company’s stock has increased by approximately 110 percent and 92 percent in a year, The company has implemented various initiatives in urban infrastructure and social housing projects.
Here are the reasons why shares of HUDCO showed such bullish movements:
● Moody’s Investor Service has affirmed the rating of Housing and Urban Development Corporations Ltd at the Bbb3 level with a stable outlook.
● If we discuss shareholding, mutual funds saw an increase from 1.19 percent to 1.22 percent, and foreign institutional investors saw an increase from 0.65 percent to 0.88 percent.
● Looking into the company’s performance revenue increased by 7 percent from Rs 1,739 Crore in Q2FY23 to Rs 1,865 Crore in Q2FY24. During the same period, net profit increased by 14 percent from Rs 396 crore to Rs 450 Crore.
● With loan support totaling Rs 21,106 crore, HUDCO has approved 36 projects in a variety of industries, including power, water supply, smart cities, transport nagar, social infrastructure, commercial infrastructure, and road and transport. In addition, Rs 6,628 crore was released throughout the year under different schemes.
● During the year, HUDCO carried out projects in the Northeastern region and sanctioned 9 housing and urban infrastructure plans with loan amounts of Rs 279 crore in the states of Assam, Tripura, and Nagaland.
In conclusion, the overall picture is one of a stable financial outlook, positive operational performance, and active involvement in financing and supporting projects across various sectors and regions. The credit rating affirmation further strengthens the perception of a company with moderate credit risk. However, stakeholders need to monitor the company’s continued financial health and its ability to sustain and grow its project portfolio.
Written by:- Abhishek Singh
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