HUDCO Share Price Target: A Detailed Analysis

I. Introduction

Housing and Urban Development Corporation Limited (HUDCO) is a public sector company in India that provides loans for housing and infrastructure projects. HUDCO had its initial public offering (IPO) in 2017, and this post will provide a detailed analysis of the HUDCO share price target.

Focus Keywords: HUDCO share price target, IPO, fundamental analysis, technical analysis.

II. Company Overview

HUDCO was established in 1970 to provide financial assistance for housing and urban infrastructure projects. It operates through four segments: housing finance, project finance, consultancy services, and property management.

HUDCO has received several awards and recognitions, including the ‘Best Performing Institution Award’ from the Ministry of Housing and Urban Affairs in 2019.

III. Promoters and Holdings

The major promoters of HUDCO are the Government of India and the National Housing Bank. As of March 2021, the Government of India held an 89.81% stake in the company.

IV. Price Journey Since IPO

HUDCO had its IPO in May 2017, with an issue price of Rs 60 per share. The stock was listed at a premium of 22.42% on the BSE and 21.69% on the NSE. Since then, the share price has seen ups and downs due to various factors such as changes in government policies and economic conditions. It has seen an all-time high of 102.30 on July 2017 and declined since then. It made a low of Rs. 18 on the Covid-19 market crash and now consolidating between 30 and 60.

HUDCO Share Price Journey
HUDCO Share Price Journey

V. Fundamental Analysis

HUDCO’s financial performance has been unstable over the past few years, with topsy-turvy revenue and net profit growth. The company does not have a healthy balance sheet, with a high debt-to-equity ratio of 4.25 as of April 2023.

As of April 2023, HUDCO’s earnings per share (EPS) stood at Rs 9.04, while its price-to-earnings (P/E) ratio was 4.96.

Recent announcements such as the company’s plans to raise funds through a public issue of bonds for affordable housing projects can potentially boost its fundamentals.

VI. Technical Analysis

HUDCO’s share price has shown a gradual downward trend since its IPO, with some significant price movements along the way. Technical indicators such as moving averages, MACD, and Relative Strength Index (RSI) suggest that the stock is currently in a mid-term bullish phase.

The key resistance levels for the stock are Rs 60 and Rs 65, while the key support levels are Rs 30. Based on technical analysis, the potential price targets for HUDCO’s share price are around Rs 60. However, if it can cross above 60 with volume, the long-term price target of HUDCO shares will be close to 80.

VII. HUDCO IPO

HUDCO’s IPO received a strong response from investors, with an oversubscription of 79 times. The issue price was set at Rs 60 per share, and the stock was listed at a premium of over 20%.

The grey market premium for the stock was observed at around Rs 30, indicating a positive sentiment among investors.

VIII. FAQ Section

Is HUDCO a good share to buy?

Investors should conduct their own research and analysis before making any investment decisions. HUDCO’s financial performance and recent developments suggest potential for future growth, but there are also risks associated with investing in the stock market.

What is the future of HUDCO share?

HUDCO’s plans to raise funds through bond issues for affordable housing projects and its stable financial performance indicate the potential for future growth. However, the stock market is subject to various external factors and risks.

What is the final dividend of HUDCO?

As of March 2022, HUDCO had declared an interim dividend of Rs 0.75 per share for the financial year 2021-22.

What is the last dividend of HUDCO?

The last dividend yield of HUDCO was 7.81% for the financial year 2021-22, as mentioned earlier. It is important for investors to keep track of the company’s dividend history as it can be an indicator of its financial health and stability.

IX. Conclusion

Based on the fundamental and technical analysis, HUDCO’s share price target appears to have the potential for growth in the near future. However, investors should also consider the risks associated with investing in the stock market and conduct their own research before making any investment decisions.

In summary, HUDCO is a public sector company that provides financial assistance for housing and urban infrastructure projects. Its financial performance has been stable, and recent announcements suggest the potential for future growth. The stock has shown a gradual upward trend since its IPO, and technical analysis indicates a bullish phase. However, external factors such as changes in government policies and economic conditions can also impact the stock’s performance.

This post serves as a guide for investors interested in HUDCO and its share price target. It is important to conduct thorough research and analysis before making any investment decisions to minimize risks and maximize returns.

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Author: Indrajit Mukherjee

Indrajit is a professional blogger and trading system developer. Amibroker expert, Wordpress expert, SEO expert and stock market analyst.Trading since 2002, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.

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