HUDCO - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

🏠 Investment Analysis: HUDCO (Housing and Urban Development Corporation Ltd.)

Investment Rating: 4.1

🧾 Fundamentals at a Glance

ROE (15.7%) and ROCE (9.62%) point to solid capital efficiency—ROE is especially strong for a public sector enterprise.

EPS: ₹13.5 is robust, giving weight to earnings consistency.

Stock P/E: 16.0 is well below the industry average of 24.6—implies undervaluation relative to peers.

PEG Ratio: 0.97 is in the sweet spot: price aligns well with earnings growth potential.

Dividend Yield: 1.92% adds passive income attractiveness.

PAT Stability: Flat quarterly profits (728 Cr vs. 735 Cr) signal stability, though growth acceleration remains elusive.

💡 Entry Price Zone

Technically oversold with RSI at 34.0, and trading below DMA 50 & DMA 200.

MACD is negative, confirming bearish momentum in the near-term.

Ideal Entry Zone: ₹190 – ₹210

This price zone edges closer to past support (~₹159) and offers better risk-reward.

Best to accumulate on dips, ideally when RSI drops below 30 again.

🏃 Holding Strategy / Exit Plan

If you're already invested, here's how to position yourself

📈 Hold Strategy

Holding Period: 2–4 years, with re-evaluation every two quarters.

Continue holding if

ROE stays above 14%

PEG remains under 1.2

Profitability continues stable or shows gradual growth

🛑 Exit Plan

Consider exiting partially if price exceeds ₹265–₹275 — near strong resistance and profit-taking zone.

Full exit warranted if

ROE drops below 12%

EPS declines consistently

PEG crosses above 1.5

Or if debt ratios worsen (Debt-to-equity is currently high at 5.97)

HUDCO is a deep-value play in infra-finance with public sector backing. While it lacks explosive growth, its predictable cash flows and sturdy dividends make it a steady long-term compounder. Want me to draft a peer comparison with PFC or REC to round this out? Let's crunch more numbers. 📊

Edit in a page