⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
HUDCO - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | HUDCO | Market Cap | 35,752 Cr. | Current Price | 179 ₹ | High / Low | 254 ₹ |
| Stock P/E | 12.8 | Book Value | 90.1 ₹ | Dividend Yield | 2.32 % | ROCE | 9.62 % |
| ROE | 15.7 % | Face Value | 10.0 ₹ | DMA 50 | 193 ₹ | DMA 200 | 212 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | 0.54 % | PAT Qtr | 713 Cr. | PAT Prev Qtr | 710 Cr. |
| RSI | 42.4 | MACD | -6.24 | Volume | 35,11,090 | Avg Vol 1Wk | 32,82,176 |
| Low price | 167 ₹ | High price | 254 ₹ | PEG Ratio | 0.78 | Debt to equity | 7.03 |
| 52w Index | 13.0 % | Qtr Profit Var | -3.00 % | EPS | 13.9 ₹ | Industry PE | 18.0 |
📊 Core Financials
- Quarterly PAT stable at ₹713 Cr. vs ₹710 Cr. (~0.4% sequential growth, ~3% YoY decline).
- ROE: 15.7% → decent profitability.
- ROCE: 9.62% → moderate capital efficiency.
- Debt-to-equity: 7.03 → very high leverage, typical for housing finance institutions.
- Dividend Yield: 2.32% → attractive shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 12.8 vs Industry PE 18.0 → undervalued compared to peers.
- P/B Ratio: 1.99 (Current Price ₹179 / Book Value ₹90.1) → fairly valued relative to assets.
- PEG Ratio: 0.78 → valuation supported by earnings growth.
- Intrinsic Value: Current price below fair value, offering upside potential.
🏢 Business Model & Competitive Advantage
- HUDCO (Housing and Urban Development Corporation) operates in housing finance and infrastructure lending.
- Business model relies on government-backed projects, affordable housing, and urban development financing.
- Competitive advantage: Strong government support, niche focus on housing and infrastructure finance.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near ₹170–₹180 (close to support levels, RSI at 42.4 indicates neutral momentum).
- Long-Term Holding: Suitable for investors seeking undervalued PSU exposure with stable dividends, though high leverage adds risk.
✅ Positive
- Undervalued P/E ratio compared to industry average.
- Dividend yield of 2.32% provides attractive shareholder returns.
- FII holdings increased (+0.03%) and DII holdings increased (+0.54%), showing institutional confidence.
⚠️ Limitation
- High debt-to-equity ratio (7.03) increases financial risk.
- ROCE at 9.62% is moderate compared to industry leaders.
- Quarterly profit variation shows slight decline (-3%).
📉 Company Negative News
- Stock trading below 50 DMA (₹193) and 200 DMA (₹212), indicating weak momentum.
- MACD at -6.24 signals bearish technical trend.
📈 Company Positive News
- Stable PAT performance despite high leverage.
- Institutional holdings (FII + DII) show net positive inflows.
🌐 Industry
- Housing finance industry PE at 18.0, higher than HUDCO’s 12.8, showing relative undervaluation.
- Industry growth driven by affordable housing demand, government schemes, and urban infrastructure expansion.
🔎 Conclusion
- HUDCO is fundamentally stable with government backing, decent ROE, and attractive dividend yield.
- Valuation is attractive compared to peers, but high leverage poses risks.
- Best strategy: Accumulate near ₹170–₹180 and hold long-term to benefit from India’s housing and infrastructure finance growth story.