HUDCO Share Price Overview
The Housing and Urban Development Corporation (HUDCO) has experienced significant volatility in its share price lately. Approximately two and a half months ago, HUDCO reached a remarkable peak in July, but it has since seen a decline of around 34% from this high. Currently, HUDCO’s shares are trading at Rs 234.70 on the Bombay Stock Exchange (BSE), reflecting a decrease of 0.99% for the day. During intra-day trading, the stock hit a low of Rs 232.40 and peaked at Rs 241.90. Notably, its all-time high stands at Rs 353.95.
Brokerage Insights on HUDCO
Brokerage firm Elara Securities maintains a bullish outlook on HUDCO, assigning a “buy” rating with a target price of Rs 360โa potential upside of about 54% from the current levels. Elara believes that the growth trajectory of housing and urban infrastructure in India is robust, which bodes well for HUDCO. The firm forecasts that HUDCO’s assets under management could expand at a compounded annual growth rate (CAGR) of 25% from FY 2024 to FY 2027, maintaining a sustainable net interest margin (NIM) of approximately 3.5% during this period.
Moreover, Elara predicts that HUDCO’s gross non-performing assets (NPA) will stabilize at 1.7% in FY 2025, subsequently declining to between 1.5% and 1.2% by FY 2026-27. This favourable growth scenario is expected to lead to an estimated EPS growth rate of 22% annually, alongside a return on assets (RoA) metrics of 2.3-2.4% and a return on equity (RoE) ranging from 14.5% to 15.0% over the same timeline.
Share Performance Over One Year
HUDCO shares have shown remarkable performance over the past year, significantly enriching investors’ portfolios. Just a year ago, on October 25, 2023, the stock was trading at a low of Rs 70.49. In an impressive surge, HUDCO’s shares skyrocketed by over 402%, reaching a record high of Rs 353.95 on July 12, 2024. However, this upward momentum has stalled, and the shares have since retraced by approximately 34% from their peak.
Key Metrics Overview
| Metric | Value |
|---|---|
| Current Share Price | Rs 234.70 |
| Record High | Rs 353.95 |
| Record Low (1 Year) | Rs 70.49 |
| Target Price (Elara Securities) | Rs 360 |
| CAGR (2024-2027) | 25% |
| EPS Growth Rate (CAGR) | 22% |
| Return on Assets (RoA) | 2.3-2.4% |
| Return on Equity (RoE) | 14.5-15.0% |
Disclaimer: The opinions or views expressed in this article are the individual perspectives of various experts and brokerage firms. It is crucial for investors to conduct comprehensive research and consult certified investment professionals before making any financial decisions.
