HUDCO - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.7
| Stock Code | HUDCO | Market Cap | 34,333 Cr. | Current Price | 171 ₹ | High / Low | 254 ₹ |
| Stock P/E | 12.4 | Book Value | 90.1 ₹ | Dividend Yield | 2.42 % | ROCE | 9.62 % |
| ROE | 15.7 % | Face Value | 10.0 ₹ | DMA 50 | 192 ₹ | DMA 200 | 211 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | 0.54 % | PAT Qtr | 713 Cr. | PAT Prev Qtr | 710 Cr. |
| RSI | 35.4 | MACD | -6.31 | Volume | 28,87,071 | Avg Vol 1Wk | 33,08,861 |
| Low price | 167 ₹ | High price | 254 ₹ | PEG Ratio | 0.75 | Debt to equity | 7.03 |
| 52w Index | 4.47 % | Qtr Profit Var | -3.00 % | EPS | 13.9 ₹ | Industry PE | 17.6 |
📊 HUDCO shows moderate fundamentals with weak technicals. The RSI at 35.4 indicates oversold conditions, suggesting a potential rebound. However, the MACD (-6.31) and price trading below both the 50 DMA (₹192) and 200 DMA (₹211) reflect bearish sentiment. Fundamentals are mixed: ROE (15.7%) is decent, and PAT is stable, but ROCE (9.62%) is modest and debt-to-equity (7.03) is very high. Valuation is attractive with a P/E of 12.4 compared to industry P/E of 17.6, and PEG ratio (0.75) suggests undervaluation relative to growth.
💡 Optimal Entry Price: ₹168–₹175, near current levels and close to support.
📈 Exit Strategy (if already holding): Consider exiting around ₹190–₹200 (near 50 DMA resistance) unless momentum strengthens further.
✅ Positive
- Valuation attractive with P/E of 12.4 vs industry P/E of 17.6.
- PEG ratio of 0.75 suggests undervaluation relative to growth.
- Dividend yield of 2.42% adds investor appeal.
- DII holdings increased (+0.54%), showing domestic institutional support.
⚠️ Limitation
- High debt-to-equity ratio (7.03) raises financial risk.
- ROCE (9.62%) is modest compared to peers.
- Stock trading below both 50 DMA and 200 DMA reflects short-term weakness.
📉 Company Negative News
- Quarterly PAT declined slightly (-3.00%), showing earnings pressure.
- Weak technical indicators (RSI, MACD, DMA trend) limit short-term upside.
📈 Company Positive News
- Stable PAT performance (₹710 Cr. to ₹713 Cr.).
- DII holdings increased (+0.54%), showing domestic support.
- Dividend yield of 2.42% provides steady returns.
🏭 Industry
- Housing and infrastructure finance sector remains cyclical but supported by government initiatives.
- Industry P/E at 17.6 makes HUDCO relatively undervalued (P/E 12.4).
🔎 Conclusion
HUDCO is fundamentally undervalued with decent returns but faces short-term technical weakness and high leverage. It may be suitable for swing trading if entered near ₹168–₹175, with a target around ₹190–₹200. Traders should monitor RSI recovery and volume trends before committing heavily.