HUDCO Stock Price Resurgence
After facing a decline for five consecutive days, shares of the Navratna Public Sector Undertaking Housing and Urban Development Corporation (HUDCO) experienced a significant upturn on September 20. The stock rebounded with an impressive increase of 9%, recovering from a previous downturn where it had declined by the same percentage over the preceding five days.
Trading Activity Highlights
On the day of the surge, over 30 million shares of HUDCO were traded on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), marking a stark increase compared to the average trading volume of 10 million shares per month. The stock opened the trading day positively at Rs 232.95 and reached a high of Rs 252.90 — a nearly 10% increase from its prior close — before settling at Rs 250.95 by the end of the trading session.
RBI Approval as NBFC-IFC
In a strategic move to enhance its position in the financial sector, HUDCO has recently received approval from the Reserve Bank of India (RBI) to operate as an Infrastructure Finance Non-Banking Financial Company (NBFC-IFC). This approval, granted in early August, positions HUDCO to provide substantial financial assistance for housing and urban infrastructure projects, significantly contributing to the Pradhan Mantri Awas Yojana-Urban 2.0 (PMAY-U 2.0).
Financial Assistance and Future Prospects
HUDCO is now empowered to offer loan assistance ranging from Rs 75,000 crore to Rs 1 lakh crore under the PMAY-U 2.0 initiative. This marks a pivotal moment for the company as it aims to boost housing affordability and enhance urban infrastructure across India.
Stock Performance Overview
| Metric | Value |
|---|---|
| Market Capitalization | Rs 50,200 crore |
| Price Band (Upper Limit) | Rs 276.40 |
| Government Stake | 75% |
| One-Year Share Price Increase | 240.55% |
| 2024 Year-to-Date Share Price Increase | 94% |
| 52-week High | Rs 353.95 (July 12, 2024) |
Conclusion
The recent resurgence in HUDCO’s stock price and its strategic developments signal a promising outlook for the company in the upcoming quarters. With the significant backing of the government and the approval from RBI, HUDCO is well-positioned to make a substantial impact in the housing finance sector, contributing to India’s urban development goals.
Disclaimer: The information provided here is for informational purposes only. Investing in the stock market involves risks. It is advisable to seek expert advice before making any investment decisions. Moneycontrol does not guarantee any investment recommendations.
