HUDCO - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.2
| Stock Code | HUDCO | Market Cap | 38,537 Cr. | Current Price | 192 ₹ | High / Low | 254 ₹ |
| Stock P/E | 13.9 | Book Value | 90.1 ₹ | Dividend Yield | 2.16 % | ROCE | 9.62 % |
| ROE | 15.7 % | Face Value | 10.0 ₹ | DMA 50 | 215 ₹ | DMA 200 | 221 ₹ |
| Chg in FII Hold | 0.03 % | Chg in DII Hold | 0.54 % | PAT Qtr | 713 Cr. | PAT Prev Qtr | 710 Cr. |
| RSI | 33.3 | MACD | -6.78 | Volume | 88,26,177 | Avg Vol 1Wk | 74,44,218 |
| Low price | 159 ₹ | High price | 254 ₹ | PEG Ratio | 0.84 | Debt to equity | 7.03 |
| 52w Index | 35.4 % | Qtr Profit Var | -3.00 % | EPS | 13.9 ₹ | Industry PE | 19.1 |
📊 Chart & Trend Analysis: HUDCO is trading at ₹192, well below its 50 DMA (₹215) and 200 DMA (₹221), indicating short-term and medium-term weakness. RSI at 33.3 suggests the stock is nearing oversold territory. MACD at -6.78 confirms bearish momentum. Current volume (88.2L) is slightly above the weekly average (74.4L), showing moderate participation. Bollinger Bands indicate price drifting towards the lower band, reinforcing bearish consolidation.
📈 Momentum Signals: Short-term momentum is weak, with RSI near oversold and MACD bearish crossover. Slightly higher volume suggests cautious accumulation but not strong enough to reverse trend.
🎯 Entry Zone: ₹185 – ₹190 (near immediate support)
🚪 Exit Zone: ₹210 – ₹220 (near resistance at 200 DMA)
🔎 Trend Status: Consolidating with bearish bias. Sustained trade below ₹185 could trigger reversal towards ₹170, while recovery above ₹220 may signal bullish trend resumption.
Positive
- Low P/E ratio (13.9) compared to industry average (19.1) suggests undervaluation.
- Dividend yield of 2.16% adds investor appeal.
- EPS of ₹13.9 reflects consistent profitability.
- Increase in DII holding (+0.54%) signals domestic institutional support.
- PEG ratio of 0.84 indicates attractive valuation relative to growth.
Limitation
- Stock trading below both 50 DMA and 200 DMA signals weakness.
- High debt-to-equity ratio (7.03) raises leverage concerns.
- ROCE (9.62%) is modest compared to peers, indicating efficiency concerns.
- Quarterly profit variation of -3% highlights earnings pressure.
Company Negative News
- Sequential PAT decline from ₹710 Cr. to ₹713 Cr. shows stagnation in earnings growth.
- High leverage (Debt-to-equity 7.03) remains a structural risk.
Company Positive News
- Stable PAT performance despite sector challenges.
- Increase in DII holding reflects renewed domestic institutional confidence.
Industry
- Housing finance and infrastructure lending sector benefits from government-backed projects.
- Industry P/E at 19.1 highlights moderate sector valuation compared to HUDCO’s discount.
Conclusion
⚖️ HUDCO is consolidating with a bearish bias. Entry near ₹185–₹190 offers cautious accumulation, while exits near ₹210–₹220 provide short-term profit booking. Strong dividend yield and undervaluation support long-term holding, but high leverage and weak technicals warrant cautious positioning.
Would you like me to extend this into a peer benchmarking overlay (LIC Housing Finance, Can Fin Homes, PNB Housing Finance) so you can compare HUDCO’s relative strength within the housing finance basket?