HUDCO - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | HUDCO | Market Cap | 44,216 Cr. | Current Price | 221 ₹ | High / Low | 254 ₹ |
| Stock P/E | 15.9 | Book Value | 90.1 ₹ | Dividend Yield | 2.06 % | ROCE | 9.62 % |
| ROE | 15.7 % | Face Value | 10.0 ₹ | DMA 50 | 193 ₹ | DMA 200 | 206 ₹ |
| Chg in FII Hold | 0.25 % | Chg in DII Hold | -0.43 % | PAT Qtr | 713 Cr. | PAT Prev Qtr | 710 Cr. |
| RSI | 78.8 | MACD | 10.1 | Volume | 69,09,458 | Avg Vol 1Wk | 83,98,870 |
| Low price | 159 ₹ | High price | 254 ₹ | PEG Ratio | 0.97 | Debt to equity | 7.03 |
| 52w Index | 65.3 % | Qtr Profit Var | -3.00 % | EPS | 13.9 ₹ | Industry PE | 19.8 |
📉 Chart Patterns & Trend: HUDCO is trading above both its 50 DMA (₹193) and 200 DMA (₹206), confirming a bullish structure. Current price (₹221) is close to its 52-week high (₹254), suggesting strong momentum but limited upside unless resistance is broken.
📊 Momentum Indicators: RSI at 78.8 signals overbought conditions. MACD at 10.1 confirms bullish crossover. Bollinger Bands show price hugging the upper band, indicating heightened volatility and possible short-term correction.
📈 Volume Trends: Current volume (69.1 lakh) is below average weekly volume (83.9 lakh), reflecting reduced participation and weakening breakout conviction.
🎯 Entry Zone: ₹210 – ₹215 (on pullbacks, safer entry after correction).
🚪 Exit Zone: ₹240 – ₹250 (near resistance and 52-week high zone).
🔎 Status: The stock is trending upward but overheated. Likely to consolidate or reverse near resistance unless supported by fresh buying momentum.
Positive
- EPS of ₹13.9 supports valuation strength.
- Dividend yield of 2.06% provides steady income.
- FII holdings increased (+0.25%), showing foreign investor confidence.
- Trading above both 50 & 200 DMA confirms bullish trend.
Limitation
- High debt-to-equity ratio (7.03) raises leverage concerns.
- ROCE at 9.62% indicates modest capital efficiency.
- RSI near 79 signals overbought conditions.
- Quarterly profit variation (-3%) shows earnings pressure.
Company Negative News
- DII holdings decreased (-0.43%), showing reduced domestic institutional support.
- Quarterly PAT declined slightly (₹713 Cr vs ₹710 Cr).
Company Positive News
- EPS remains stable at ₹13.9.
- Dividend yield continues to attract income-focused investors.
Industry
- Housing finance sector trading at industry PE of 19.8, higher than HUDCO’s P/E (15.9), suggesting relative undervaluation.
- Sector outlook remains positive with government infrastructure and housing initiatives.
Conclusion
⚠️ HUDCO is technically strong but overheated, trading near its 52-week high with overbought RSI levels. Fundamentals remain moderate with stable EPS and dividend yield, but high leverage is a concern. Short-term traders may book profits near ₹240–₹250, while cautious re-entry is advisable only after correction toward ₹210–₹215. Long-term investors should monitor debt levels before fresh accumulation.
Would you like me to extend this into a peer benchmarking overlay with LIC Housing Finance, Can Fin Homes, and PNB Housing to highlight HUDCO’s relative strength in the housing finance sector?