Shares of this multibagger Navratna stock jumped up to 3 percent in Monday’s trading session after the company signed a Memorandum of Understanding (MoU) with SITCO for the construction and development of a Multi-Modal Transportation Hub. In the last month, the company’s stock gained more than 10 percent for its holders.
With a market capitalization of Rs 43,311.11 crores, the stocks of Housing & Urban Development Corporation Limited (HUDCO) started their trading session on Monday at Rs 217.95 and closed the session at Rs 216.35. The company’s stock witnessed an intra-day high price of Rs 220.40 indicating a gain of around 3 percent compared to the previous close of Rs 214.05 apiece.
Such bullish share price movements were observed today after the company, through a recent regulatory filing with the Bombay Stock Exchange (BSE), intimated that it has signed an MoU with “Surat Integrated Transportation Development Corporation Limited” (SITCO) for the construction and development of ‘Surat Multi-Modal Transportation Hub’ (SMMTH).
SITCO is incorporated as a joint venture (JV) organization of the ‘Ministry of Railways’ through the Rail Land Development Authority, the ‘Government of Gujarat’ through GSRTC, and ‘Surat Municipal Corporation’.
The abovementioned MoU was executed by Shri Sanjay Kulshrestha, CMD, HUDCO and Shri Manoj Garg, MD, SITCO in the presence of senior officials from HUDCO, SITCO, and Rail Land Development Authority (RLDA).
During the recent financial quarters, the company’s basic business parameters, viz, its operating revenues as well as after-tax profits, witnessed a jump in numbers with the former increasing from Rs 1,865 crores during Q2FY24 to Rs 2,013 crores during Q3FY24, and the latter, keeping the timeframe the same, rising from Rs 452 crores to Rs 519 crores.
According to the latest presentations, the sanctions portfolio stands at around Rs 18,000 crores, of which nearly 96 percent of the sanctions are contributed towards ‘Urban Infrastructure’ projects and the remaining share from the ‘Housing’ projects (including HUDCO Niwas).
Keeping a purview of the last six months, the company’s stock has proven to deliver multibagger returns of approximately 165 percent to its stakeholders, i.e., if someone had invested Rs 1 lakh into the company’s stock six months ago, it would have converted to Rs 2.65 lakhs.
Incorporated in 1970, Housing & Urban Development Corporation Limited is engaged in providing long-term finance for constructing houses for residential purposes, finances, and undertaking housing & urban infrastructure development programs. The company provides loans for projects like power, social infrastructure, sewerage, water supply, solid waste management, and others.
Written by Amit Madnani
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