Housing & Urban Development Corporation (HUDCO) Shares Surge Over 8% As Net Profit Soars

Manoj Prasad

Housing & Urban Development Corporation (HUDCO) shares rallied over 8% to hit a new 52-week high of Rs 114.08 on the BSE after the company reported strong results for the September 2023 quarter.

HUDCO Q2 Results Highlights

  • HUDCO posted a massive 451.65 crore net profit in Q2FY23, registering a 33% year-on-year growth.
  • Total income increased to Rs 1,977.84 crore from Rs 1,919.53 crore last year.
  • Net Interest Income jumped 31% to Rs 1,126.59 crore versus Rs 860.73 crore in Q2FY22.

Why Are HUDCO Shares Rising?

HUDCO shares are surging after the company delivered robust Q2 performance. The 33% growth in bottomline and 31% growth in NII has impressed investors.

The company’s asset quality also remains stable with gross NPA at 2.26% versus 2.64% last year and net NPA at 0.74% versus 0.86% in Q2FY22.

HUDCO Share Price Movement

HUDCO shares have given stellar returns to investors this year. The stock has surged over 102% year-to-date in 2022. Over the past 1 year, the stock has delivered 114% returns.

In the past 5 trading sessions, HUDCO shares have declined 5% after the recent rally. However, the stock has jumped 26% in the last 3 months, outperforming the sector and broader indices.

HUDCO Valuation Attractive

HUDCO is currently trading at a P/E ratio of 10.26, which is lower than the sector average P/E of 12.12. This indicates the stock is attractively valued compared to peers.

The company has a strong balance sheet with low debt-to-equity ratio of 0.4x. HUDCO’s return on equity stands at a healthy 15.5%.

Outlook for HUDCO

With the government’s continued focus on affordable housing and infrastructure, HUDCO is well placed to capitalize on growth opportunities.

The company has adequate liquidity to fund future growth. As of September 2022, HUDCO had liquid assets of ₹9,597 crore.

Backed by strong Q2 performance, positive industry outlook and attractive valuation, HUDCO shares are poised for further upside. Investors can consider buying the stock on dips for solid returns.

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Indimarket.in and Modernagebank.com founder Manoj utilizes his tech degree and 5+ years as a stock investor to lead as editor-in-chief, overseeing all content and fact-checking for the platforms while trading.
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