Stock To Buy: Shares of Housing and Urban Development Corporation Limited i.e. HUDCO are in focus these days. The company’s shares closed with a slight fall at Rs 283.95 on Thursday. The stock had risen by 4% in intraday trading and reached a high of Rs 294.80. Here, brokerage firms are bullish on this stock and are advising to buy it. Brokerage firm Elara Capital is bullish on HUDCO shares and is advising to buy it. The brokerage had initiated coverage on the stock in May 2024 and they still expect the counter to rise.
What are the details?
Elara Capital said that HUDCO stock may see a rise even after the PSU and election related activity subsides to a great extent. The brokerage expects business CAGR of over 20 per cent in FY24-27E. The company has set a target of Rs 15,000 crore AUM by FY26E. About 40 per cent of HUDCO’s liabilities (taxable bonds) are priced 50 bps lower and the other 7 per cent (foreign currency borrowings) are priced 100 bps lower at 7.33 per cent, with the blended cost of funds in Q4FY24. The possibility of HUDCO issuing 54EC bonds in the near future will further reduce funding costs, the brokerage said in the note.
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Status of company’s shares
HUDCO shares have risen about 770% in the last two years. It was at 33.90 in June 2022. The stock has gained almost 400 percent in the last one year. The stock has gained 150 per cent in the last six months, while it has gained 125 per cent so far in the year 2024. Elara Capital said the government’s focus is on housing/infra and important announcements may be made in the coming days. In such a situation, this stock may rise and reach Rs 350.
