The shares of the leading public financial institutions gained 16 percent in two trading sessions after the cabinet approved government support for the construction of 3 crore additional rural and urban hoses under Pradhan Mantri Awas Yojana (PMAY).
With a market capitalization of Rs 56,573.69 crore, the shares of Housing & Urban Development Corporation Ltd were trading at Rs 282.40 per share, increasing around 5.61 percent as compared to the previous closing price of Rs 267.40 apiece.
Prime Minister Narendra Modi’s cabinet gave approval for the construction of 3 crore houses, out of which 2 crore will be constructed under PMAY- Gramin, while one crore will be under PMAY- urban. In the previous ten years, PMAY has completed 4.21 crore residences for eligible poor people through housing initiatives.
As of March 2024, the Government of India holds 150.14 crore equity shares which is equivalent to 75 percent of the company.
Last month, brokerage firm Elara Securities initiated coverage on HUDCO and gave a ‘Buy’ rating and a price target of ₹297 per share.
Moreover, Elara stated that HUDCO is a specialized business with a strong alliance with state agencies, a leader in non-self-sustainable infra financing, a favorable loan mix in favor of high-growth assets, which is consistent with state allocations, and a steady repayment trajectory due to the long asset tenure, which gives it a competitive advantage, as some of the factors driving its bullish stance.
Examining the company’s financial performance, revenue soared 11 percent from Rs 1,852 crore in Q4FY23 to Rs 2,065 crore in Q4FY24, and during the same period, net profit increased by 9 percent from Rs 639 crore to Rs 700 crore.
The stock has given a multi-bagger return of 194 percent in just six months and 373.82 percent in a year. If an investor invested Rs 1 lakh a year ago, it would now be worth Rs 4.73 lakh.
Housing And Urban Development Corporation Limited specializes in housing and infrastructure project finance (including retail lending) and offers consulting services. It organizes capacity-building programs, workshops, and seminars for national and international government personnel.
Written by:- Abhishek Singh
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