Housing & Urban Development Corporation Ltd. (HUDCO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

CreditAcc. Gram.

Muthoot Microfin

HUDCO

REC Ltd

Indian Renewable

Power Fin.Corpn.

IFCI

Tour. Fin. Corp.

I R F C

Spandana Sphoort

Fusion Finance

Why is Housing & Urban Development Corporation Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 13.11%

Poor long term growth as Net Sales has grown by an annual rate of 9.97%

Flat results in Sep 25

OPERATING CF(Y) Lowest at Rs -31,602.67 Cr
DEBT-EQUITY RATIO(HY) Highest at 7.03 times
PBT LESS OI(Q) At Rs 922.72 cr has Fallen at -6.95%

With ROE of 15.5, it has a Very Expensive valuation with a 2.5 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -7.69%, its profits have risen by 13.7% ; the PEG ratio of the company is 1.2

Increasing Participation by Institutional Investors

Institutional investors have increased their stake by 0.64% over the previous quarter and collectively hold 12.86% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

With its market cap of Rs 44,522 cr, it is the biggest company in the sector and constitutes 21.54% of the entire sector

Its annual Sales of Rs 11,761.56 are 14.51% of the industry

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to HUDCO should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is HUDCO for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

HUDCO

-7.69%

-0.20

38.39%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.97%

EBIT Growth (5y)

11.85%

Net Debt to Equity (avg)

7.03

Institutional Holding

12.86%

ROE (avg)

13.11%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.50

EV to EBIT

15.00

EV to EBITDA

14.99

EV to Capital Employed

1.19

EV to Sales

14.60

PEG Ratio

1.18

Dividend Yield

2.71%

ROCE (Latest)

7.91%

ROE (Latest)

15.54%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

8What is working for the Company

NET SALES(Q)

At Rs 3,219.03 cr has Grown at 27.85%

PBDIT(Q)

Highest at Rs 3,072.47 cr.

-6What is not working for the Company

OPERATING CF(Y)

Lowest at Rs -31,602.67 Cr

DEBT-EQUITY RATIO(HY)

Highest at 7.03 times

PBT LESS OI(Q)

At Rs 922.72 cr has Fallen at -6.95%

Loading Valuation Snapshot...

Here's what is working for HUDCO

Net Sales - Quarterly

Highest at Rs 3,219.03 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 3,219.03 cr has Grown at 27.85%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 3,072.47 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Here's what is not working for HUDCO

Operating Cash Flow - Annually

Lowest at Rs -31,602.67 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Debt-Equity Ratio - Half Yearly

Highest at 7.03 times and Grown

each half year in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 922.72 cr has Fallen at -6.95%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

Highest at Rs 31.99 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income