Housing and Urban Development Corporation, also known as HUDCO Limited, is a government-owned corporation which provides financial and consultancy services for housing and infrastructure projects in India.
As of August 31, 2018, the market capitalisation of HUDCO Limited was roughly Rs.11,100 crore.
Company’s Wealth and Recent Performance
- For the year ended on March 31, 2018, HUDCO Limited reported its total revenue to be at Rs.4,173 crore in comparison to a revenue of Rs.3,584.84 crore stated for the previous fiscal year.
- However, despite a sizeable increase in the revenues, the company’s profitability was impacted by an increase in the expenditure and tax expenses. Consequently, the net profit after tax on a y-o-y basis came down from Rs.842.24 crore to Rs.799.95 crore as of March 31, 2018.
- The company’s total consolidated non-current liabilities for the year was reported to be at Rs.29,334.51 crore - an increase of more than Rs.4,000 crore with respect to the figure stated for the FY 2016-17.
Housing and Urban Development Corporation Limited Stock Trends in 2018
- On January 2, 2018, the opening stock price of HUDCO Limited was Rs.82.85 on the NSE. The shares didn’t make any noticable gains in the first month of the year as the shares maintained their heading at levels above Rs.80.
- In February, the stocks lost marginally to slip into the Rs.70 region. The fall was seen well into the month of March as well and the scrip finished the month trading at Rs.66.30. In the same month, the company announced an interim dividend of 5.5%.
- The scrip continued to be bearish through the months of April and May as well. In this period, the shares lost close to 15%, although by the end of May, they had managed to recover some of those losses. The shares had slipped into the Rs.50 region with the closing price on May 31, 2018, being Rs.59.60 on the NSE.
- While the share price of HUDCO rose slightly in the first half of June, over the course of the second half and most of July, the shares were highly bearish and they continued to head down gradually. In late July, the shares hit their 52-week low at Rs.51. Through most of August, the shares were seen trading hands at levels slightly above Rs.55.
Housing and Urban Development Corporation Limited Stock Trends in 2016 and 2017
- The shares of Housing and Urban Development Corporation Limited made their debut on the stock markets in India in late May 2017. The scrip commenced the trading at levels close to Rs.70.
- Things didn’t change considerably until the first week of July. Following the development related to the EPFO and the Pradhan Mantri Awas Yojana, the stock price of HUDCO skyrocketed to gain more than 30% in little over a week.
- By mid-July, the shares were trading at levels above Rs.90, although the prices soon stabilised and retreated to levels above Rs.80. In the same month, the shares touched their 52-week high at Rs.92.60. Through the months of August and September, the shares were quite volatile, although they still managed to remain buoyant at levels above Rs.80.
- In September, the company announced a final dividend of 0.5%. Things didn’t change significantly over the remainder of the year and HUDCO shares finished trading in 2017 at Rs.82.50.
Should you invest in Housing and Urban Development Corporation Limited?
- HUDCO Limited is a government owned Miniratna company that offers loans for housing and urban infrastructure projects in India. It has been in operation for the last four decades and serves as an important entity when it comes to developing infrastructure in India. In fact, its primary borrower is the State Government.
- For the year ended on March 31, 2018, the company reported a consolidated net profit of Rs.799.9 crore - a marginal decrease over the profit reported for the previous fiscal year. Its revenues, on the other hand, improved by more than Rs.500 crore y-o-y.
- Considering the performance of the stock, the shares made their debut on the bourses in May 2017 at levels close to Rs.70. In 2017, they gained a little over 10% to touch the Rs.80 mark although in 2018, the scrip moved on to shed all its previous gains. As of late August, it was seen trading at levels close to Rs.55.
- The housing finance market in India is expected to grow in the coming years owing to various factors like the Government initiatives, urbanisation, and population growth. The funding required for these housing projects, along with those for urban infrastructure projects, is quite large and HUDCO is one of the very few players in the sector that is pegged to meet this demand.
- However, it is important to not mistake HUDCO Limited with other housing finance companies like HDFC or Indiabulls. Its customers are mainly the State Government and consequently, the company may incur a high non-performing asset count. Also, being a Government owned entity, debt is another factor to be considered here. Whatever may be the case, it is strongly urged to research thoroughly before investing in this stock.
Housing and Urban Development Corporation Limited is a public-sector company wholly owned by the Government of India. It serves to provide consultancy and financial services for housing and urban infrastructure projects in India. The company provides housing finance for various categories such as social housing, residential real estate, and retail. In the case of urban infrastructure projects, it focuses on projects related to water supply, power, road and transport, sewage and waste management, et cetera.
History of the Company
Housing and Urban Development Corporation Limited was incorporated in the year 1970 as ‘The Housing and Urban Development Finance Corporation Private Limited.’ It started its operations by developing ceiling costs and financing patterns for various income groups. Subsequently, it started providing financial assistance to cooperative societies and rural housing schemes. Eventually, it forayed into funding urban development schemes. In 1988, the Government of India assigned the role of financing urban infrastructure projects to HUDCO, making it a pioneer in the development of housing in India. In 2004, the corporation was conferred with the Miniratna status and in 2017, the company’s shares were listed on the stock exchanges in India.
Management of the Company
Dr. M. Ravi Kanth - Chairman, President & Managing Director
Dr. M. Ravi Kanth presently serves as the Chairman and Managing Director of Housing Urban Development and Corporation Limited. He has held these positions since April 2014 and is considerably experienced in the infrastructure segment. He has been associated with various reputed government organisations over the years. In his illustrious career, he has served as the Joint Secretary of Transmission in the Ministry of Power of India, Chairman and Managing Director of National Handicapped Finance and Development Corporation, Ministry of Social Justice and Empowerment, and Deputy Chief Executive of the Nuclear Fuel Complex, Department of Atomic Energy.
Mr. Rakesh Kumar Arora - Director of Finance, Chief Financial Officer
Mr. Rakesh Kumar Arora presently serves as the Chief Executive Officer and the Director of Finance of Housing and Urban Development Corporation Limited. He also serves as a Whole-Time Director of the organisation. Prior to this, he was associated with Rural Electrification Corporation Limited where he served in the capacity of an Executive Director. He has been a part of the finance sector for more than 30 years and has served on various assignments concerning investors relations, corporate accounts, corporate planning, corporate social responsibility, treasury management, foreign currency, et cetera. He is a fellow member of the Indian Institute of Chartered Accountants.
Mr. N. L. Manjoka - Director of Corporate Planning
Mr. N. L. Manjoka presently serves as the Director of Corporate Planning and a Whole-Time Director of HUDCO Limited. He has held these positions since April 2013. He is an Associate Member of the Institute of Engineers, India. He holds a postgraduate diploma in Banking & Insurance and a Masters degree in Business Administration.
Housing and Urban Development Corporation Listings in NSE, BSE, and Indices
The equity shares of HUDCO Limited are available to the general public for trading on the country’s two benchmark indices - the National Stock Exchange of India Limited and the Stock Exchange, Mumbai. The respective codes for the same are as follows:
- NSE Code: HUDCO
- BSE Code: 540530
- ISIN: INE031A01017
- Sector: Construction & Contracting - Real Estate
Coming to the stock market indices, the company comprises the following:
- Nifty 500
- Nifty 200
- Nifty Midcap 150
- Nifty Midcap 100
- S&P BSE 500
- S&P BSE AllCap
- S&P BSE Finance
- S&P BSE MidCap
- S&P BSE PSU
Housing and Urban Development Corporation Limited
India Habitat Centre, Lodhi Road
New Delhi - 110-003
Contact number: 011-24649610-23
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