HUDCO LTD
Housing & Urban Development Corporation Ltd is primarily engaged in the business of financing housing and urban development activities in the country.
Key Business
Housing Finance
Urban Development
Shareholding Pattern
-PUBLIC GROUP
-PROMOTER GROUP
Financial Summary
| Particulars | Mar 2022 | Mar 2023 | Mar 2024 |
| Sales | 6,986 | 7,082 | 7,829 |
| Interest | 4,533 | 4,507 | 4,961 |
| Expenses | 111 | 279 | 134 |
| Financing Profit | 2,342 | 2,296 | 2,734 |
| FPM% | 34% | 32% | 35% |
| Net Profit | 1,716 | 1,701 | 2,117 |
| EPS in Rs | 8.57 | 8.50 | 10.57 |
Synopsis of Financials
- Achieved milestones during the last financial year.
- Sanctions increased by 235% from INR 24,500 crores to over INR 82,000 crores.
- Disbursements grew by 112% year-on-year, reaching INR 18,000 crores.
- Loan book increased by 15% from INR 80,000 crores to INR 92,000 crores.
- Borrowing side raised around 22,000 crores, with a reduced cost of funds from 7.46% to 7.1%.
Final Outlook
Key Financial Metrics (FY 2024):
Net Profit Margin: HUDCO’s profit margin has increased, reaching around 9.54% growth in Q4 FY24. This boost in profitability can be attributed to strong revenue streams from both housing and urban infrastructure financing sectors.
Return on Equity (ROE): The ROE stands as a key indicator of HUDCO’s profitability relative to shareholder equity, a critical measure for gauging the company’s efficiency at generating profit from its resources.
Current Ratio: HUDCO’s current ratio has shown stability, which reflects its ability to cover short-term liabilities. However, recent fluctuations are noted, with the latest being around 2.82
Net Interest Margin (NIM): This ratio has held around 3.2%, showing consistency in the income HUDCO earns on loans relative to its interest expenses.
Other Fundamental Ratios:
Basic and Diluted Earnings per Share (EPS): Basic EPS for FY24 was around ₹10.59, showing an increase from FY23’s EPS. Diluted EPS was close to ₹10.57, reflecting stable earnings growth for shareholders.
Dividend Yield: HUDCO declared a dividend per share of ₹4.15, an increase from the previous year. This consistent dividend payout highlights its focus on returning value to shareholders.
Debt-Equity Ratio: HUDCO maintains a balanced debt-equity ratio, aligning with its government-backed status, indicating a stable approach to financing and leverage.
HUDCO’s fundamental analysis and financial metrics reflect stable profitability, consistent dividend yields, and a focus on growth through financing for urban development.
For the long term perspective i’ll give a Buy Rating but if you want a more good discount you can wait for price to come down at 160.
HUDCO-Ltd