A Navaratna public sector company saw its stock rise by 6 percent after signing a Memorandum of Understanding (MoU) with Maharashtra Chief Minister Devendra Fadnavis. The MoU involves funding a massive infrastructure project in Mumbai worth Rs.1.5 trillion, aimed at boosting urban development and connectivity in the region.
Price Action
During Tuesday’s trading session, shares of Housing & Urban Development Corporation Ltd jumped to an intraday peak of Rs.207.80 each, reflecting a 6.6 percent increase from the prior closing price of Rs.194.89 per share. However, the stock retreated slightly and closed at Rs.207.73 apiece. Over the past five years, the stock has delivered over 850 percent returns.
Strategic Agreements
Housing and Urban Development Corporation Limited (HUDCO) signed a Memorandum of Understanding (MoU) with the Mumbai Metropolitan Region Development Authority (MMRDA) on April 8, 2025, in Mumbai.
Under this agreement, HUDCO will consider providing financial support of up to Rs.1,50,000 crores over the next five years for various infrastructure projects undertaken by MMRDA in the Mumbai Metropolitan Region. Additionally, HUDCO will offer consultancy services and capacity-building support to meet MMRDA’s evolving needs.
The MoU was signed in the presence of Maharashtra Chief Minister Shri Devendra Fadnavis, Deputy Chief Minister Shri Eknath Shinde, HUDCO CMD Shri Sanjay Kulshrestha, and other key dignitaries.
Orderbook Details
For the first nine months of FY25, Housing & Urban Development Corporation Ltd (HUDCO) reported significant financial performance, with loan sanctions reaching Rs.92,151 crore and loan disbursements totaling Rs.30,428 crore. These figures highlight the corporation’s robust growth and its continued contribution to urban infrastructure development.
Earnings Report
According to its recent financial updates, Housing & Urban Development Corporation Ltd reported remarkable consolidated revenue of Rs.2,760 crores in Q3 FY25, marking a 37 percent increase from Rs.2,013 crores in Q3 FY24. In addition, the company saw a surge of 42 percent in net profit to Rs.735 crores, compared to Rs.519 crores in the same period.
As of January 2025, Housing & Urban Development Corporation Ltd (HUDCO) recorded a gross non-performing asset (NPA) of Rs. 2,233.99 crore and a net NPA of Rs. 321.68 crore. The company maintains a provision coverage ratio of 85.60%, reflecting its strong ability to manage potential credit risks and safeguard against further asset deterioration.
Ratio Analysis
The company has a Return on Capital Employed (ROCE) of 8.13 percent and a Return on Equity (ROE) of 14.4 percent. Its Price-to-Earnings (P/E) ratio stands at 13.49, lower than the industry average of 15.95.
Written by – Siddesh S Raskar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
