Is HUDCO overvalued or undervalued?

As of 2 July 2025, HUDCO's valuation grade has moved from very expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued based on its financial metrics, with a PE ratio of 17.28, an EV to EBITDA of 14.89, and a PEG ratio of 0.62, suggesting potential for growth relative to its valuation.
In comparison to its peers, HUDCO's PE ratio is higher than LIC Housing Finance, which stands at 6.16, and lower than Aptus Value Housing at 21.43. This positions HUDCO competitively within the industry, reflecting a balanced valuation. Notably, HUDCO has underperformed against the Sensex in the past year, with a stock return of -15.94% compared to the Sensex's 5.00%, which may further support the view that the stock is currently fairly valued given its recent performance.