In this article, we are going discuss HUDCO share price target for 2023, 2024, 2025, and 2030 based on its fundamentals and technical analysis. In this article, we will cover all about HUDCO and its business model, management, Financial health, future projects, and its competitors. So let’s start.
HUDCO means Housing and Urban Development Corporation Limited is a public limited company that was incorporated on April 25, 1970, as a privet limited company under the Companies Act, 1956 and it became a public limited company on July 9, 1974.
The main objective of the company’s establishment was to address the issue of housing finance and play a role in urban infrastructure development.
HUDCO Company Profile
| Company | HUDCO |
| Incorpotated | 1970 |
| Listed | Incorporated |
| Sector | Housing-Finance |
| Chairman | Shri Sanjay Kulshrestha |
| Website | https://www.hudco.org.in/ |
Management Team of HUDCO
Shri Sanjay Kulshrestha is the Chairman and Management Director of HUDCO. He is an electrical engineering graduate with more than 32 years of experience in infrastructure financing, hedging, asset liability management, hedging, power sector project financing, etc.
List of the current members of the HUDCO Board of Directors
- Shri Sanjay Kulshrestha, Chairman and Managing Director
- Shri Satinder Pal Singh, Director (Government Nominee)
- Shri Rajiv Sharma, Executive Director (P)
- Shri Surendra Kumar, Executive Director (P)
- Shri Ratna Prakash, Company Secretary
- Shri SK Solanki, Executive Director (L)
- Smt. Vandana Motsara, Executive Director (Human Resource Development)
- Shri VT Subramanian, Executive Director (P)
- Shri Rajkumar Bhandari, Independent Director
- Shri Rakesh Mohan, Independent Director
- Shri Pradeep Kumar, Independent Director
Business areas of HUDCO
- Housing finance: HUDCO provides loans to individuals, housing societies, and other entities for the construction and purchase of houses. It also provides loans for the development of housing projects.
- Urban infrastructure finance: HUDCO provides loans to state governments, local bodies, and other entities for the development of urban infrastructure projects, such as water supply, sanitation, roads, and bridges.
- Project consultancy services: HUDCO provides consultancy services to government agencies and other entities on housing and urban development projects.
Latest Projects of HUDCO:
- Telangana State Housing Corporation Limited permitted the construction of 60,000 LIG (2 BHK) Housing projects for the company in Telangana State.
- Sikkim Housing & Development Board approved a Housing scheme for the conversion of 3,000 kutchha homes into pukka homes for the poorer sections of people in Sikkim under CM’s Rural Housing Mission at phase I.
- Kerala state approved a project of construction of 69,271 EWS Houses under the LIFE mission.
HUDCO Company Overview
| Market Cap | 16,065.25 Cr. |
| Advances | 79,202.69 Cr. |
| PE | 9.26 |
| PB | 1.01 |
| Dividend yield | 4.79% |
| Book value | 79.38 |
| Net profit | 1,701.62 Cr. |
| EPS | 8.67 |
| Sales Growth | 1.37 |
| ROE | 11.38% |
| ROCE | 8.81% |
| Profit Growth | -0.87% |
Fundamental Analysis of HUDCO
5 years Financial preference of HUDCO:
| Financial Year | Total Income (Rs. crore) | Net Profit (Rs. crore) | EPS (Rs.) |
| 2022-23 | 3,403.30 | 370.40 | 5.56 |
| 2021-22 | 3,831.50 | 456.60 | 6.79 |
| 2020-21 | 3,771.00 | 441.80 | 6.59 |
| 2019-20 | 3,538.00 | 417.90 | 6.23 |
| 2018-19 | 3,261.00 | 392.30 | 5.83 |
For the last 5 years, the total income and net profit of the company have grown steadily and the EPS of the company also increased over the same period.
CAGR: The net profit growth over the past five years has grown at a CAGR of 15%.
Large loan portfolio: The loan portfolio of HUDCO is nearly 1 lack cr. The loan book of the company is diversified into different sectors such as housing,, social infrastructure, and Urban infrastructure.
Financial Ratios of HUDCO
Return on Equity: The ROE of the company is average and for the latest year ROE is 11.38%.
P/E Ratio: The historical PE ratio for the last 5 years is 4.89 and the latest PE ratio is 5.10 which is considered overvalued.
P/B Ratio: The historical PB ratio for the last 5 years is 0.57 and the latest PE ratio is 1.o2.
ROE: The return on equity for the last year is 11.38% and for the last 5 years is 12.42% which is good.
Share Holding Pattern of HUDCO
The promoter holding in the company is nearly 81.81% which indicates that the promoter believes in the company and that the company will grow in the future.
FII and DII holdings in the company are 0.65% and 7.15% which indicates that the company fails to attract smart money.
Public holding in the company is 10.4%.
Competitors of HUDCO
- National Housing Bank (NHB)
- Housing Development Finance Corporation (HDFC)
- LIC Housing Finance
- SBI Housing Finance
- PNB Housing Finance
- ICICI Home Finance
- Kotak Mahindra Prime
- Godrej Housing Finance
- Aditya Birla Housing Finance
- TATA Housing Finance
- DHFL
- Pradhan Mantri Awas Yojana (PMAY)
Challenges for HUDCO:
Rising interest rates, Competition from other financial institutions, and high levels of non-performing assets (NPAs). This could impact the company’s profitability and financial health in the long term.
Technical Analysis of HUDCO
If you looking for short-term investment then technical analysis we help you to where to enter and where to exit. And it also us to track the stock trend if you are looking for long-term investment. So to analyze the trend of the stock we take a monthly chart to understand its trend and direction.
On 19th Oct 2023, the stock was trading at 80.25 in NSE it shortfall because the govt of India decided to sell 7% of its shares at a floor price fixed at Rs. 79. so this created panic in the market but when we look into border point of view the stock has a strong fundamental background.
So on the weekly chart, the stock is now strong support at 78 if the the stock is sustained on this level its first target will be 95 second target will be 155, and the third target will be 239.
HUDCO Share Price Target/prediction/Forecast
| Year | Minimum | Maximum |
| 2023 | 71 | 102 |
| 2024 | 85 | 155 |
| 2025 | 131 | 239 |
| 2030 | 324 | 376 |
HUDCO Share Price Target 2023
The govt of India has a vision that everyone must have a shelter so this theme will boost the company’s growth in the future the share price for 2023 will be a minimum of 71 and the maximum will be 102.
HUDCO Share Price Target 2024
The company have lots of projects in its hand so it will benefit the company the share price target for 2024 will be a minimum of 85 and a maximum will be 155.
HUDCO Share Price Target 2025
The company’s total income and net profit have been steadily growing for the last 5 years this indicates that the company will be growing in the future so the share price target for 2025 will be a minimum of 131 and the maximum will be 239.
HUDCO Share Price Target 2030
As per the technical analysis and the increasing demand for housing loans the share price target for 2030 will be a minimum of 324 and a maximum will be 376.
Conclusion:
If you thinking of long-term investment and considering growing the Indian economy this is good for investment in the company. The govt of India is now investing heavily in infrastructure development and Urban development. So HUDCO is expected to play a major role in these initiatives. The company’s strong track record healthy balance sheet and ex-poser to long-term growth will indicate that this is a good opportunity for investment. So before investing understand the business model and market trend. If you like this article rate us and share this article with your family and friends and comment below for more information.
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