NSE Symbol: HUDCO | BSE Code: 540530
HUDCO Share Price Performance
HUDCO share price got listed in the country’s two most popular stock exchanges - the NSE and the BSE in May 2017, with a price per share of Rs. 72.55. HUDCO share price reached Rs.90.70 per share in July 2017, and has fluctuated since then, mostly falling below the Rs.90 threshold. As of October 2018, HUDCO share price has reached its 52-week low at Rs.43.80.
HUDCO Company Information and Brief History
Housing and Urban Development Corporation Limited or HUDCO is a well-known public sector undertaking. It provides loans for housing and urban infrastructure projects in India. It has more than 47 years of experience in this line of work. The Government of India has awarded the status of 'Miniratna' (Category-I Public Sector Enterprise)to HUDCO. The company classifies housing finance loans into the categories of residential real estate, social housing and retail finance. HUDCO provides the Urban Infrastructure Finance for projects pertaining to water supply, power, roads and transports, etc. HUDCO also aids emerging sectors, including SEZs, industrial infrastructure, oil terminals, gas pipelines and telecom sector projects. Moreover, commercial and social infrastructures, such as shopping centers, malls, multiplexes, market complexes, hotels, office buildings, sewerage, drainage and waste management also receive financial aid from HUDCO. Ravi Kanth Medithi is the Chairman & Managing Director of HUDCO, along with Rakesh Kumar Arora and Nand Lal Manjoka acting as Directors. HUDCO share price fluctuates at every moment and thus it is very important for all potential investors to keenly study the performance of the company’s shares before investing in it.
The company was established as the Housing and Urban Development Finance Corporation Pvt. Ltd. in April 1970; it was a private limited company, founded under the Companies Act of 1956.
Later, the name was changed to Housing and Urban Development Corporation Limited or HUDCO on July 9, 1974.
The Department of Company Affairs of the Ministry of Finance, under Section 4A of the Companies Act of 1956, registered HUDCO as a public financial institution on 9th December 1996.
The NHB issued a registration certificate to HUDCO in July 2001. This certificate allowed the company to proceed with the business of a housing finance institution.
The company launched rural housing schemes in 1977 which aimed to provide loan assistance for the construction of rural houses.
The Human Settlement Management Institute, the company's research and training division, was established in the year 1986.
Soon after, in 1988, the company ventured into urban infrastructure financing.
A decade later, in 1999, HUDCO entered into retail financing under its brand name 'HUDCO Niwas'.
Wealth and Performance
In 2012, HUDCO's profit after tax exceeded the Rs 600 crore mark. During the same financial year, it raised Rs 5000 crore by issuing tax-free bonds. This introduction was as per the allocation by the CBDT in its budget allocation for that year. The company raised Rs 4684.7 crore raised through these tax-free bonds.
In 2013, HUDCO’s profit after tax crossed the Rs 700 crore threshold. During the same financial year, HUDCO again raised Rs 2401.35 crore through the public issue of tax-free bonds. ,
In the financial year (2013-2014), the company raised Rs 4987.12 crore through the tax-free bonds, including a total raise of Rs 4796.32 crore.
In 2015-2016, the company raised Rs 5000 crore through these bonds, resulting in a rise of Rs 3500 crore.
The government of India (GoI), in May 2017, carried out disinvestment of 20.4 crore shares, which constituted a 10.19% stake in the company via an initial public offer (IPO).
After the successful completion of this IPO, the government stakes in HUDCO dropped to 89.81% from the earlier 100%.
In May 2017, HUDCO share price got listed on the bourses.
The Board of HUDCO, on 28 March 2018, approved the annual borrowing programme for FY 2018-19, up to a maximum of Rs 40000 through various sources or modes. This borrowing limit includes the power of making a private placement of non-convertible debentures, provided that the shareholders of the company approve it in the general meeting.
In the previous financial year (2017-18) the products or revenue segments of HUDCO, including interests, contributed Rs 4021.05 crore to sales value, which was 98.66 % of total sales. Other operating revenue contributed Rs 51.64 crore to sales value which was 1.26 % of total sales and the income from financial services contributed Rs 2.73 crore to sales value, which amounts to 0.06 % of total sales.
For the quarter which ended in June 2018, HUDCO has reported a standalone sales of Rs 1530.92 crore, 30.89 % above the sales of the previous quarter sales of Rs 1169.66 crore and also 70.27 % above the sales of the same quarter in the previous financial year, which was Rs 899.09 crore.
HUDCO has reported a net profit after tax of Rs.333.38 Crore in the latest quarter.
Is Investing in HUDCO Shares a Good Idea?
The share market is considered to be a risky affair. There is no correct answer to this question. An investor must study the market performance and trend of the company in order to decide if it would be a worthy investment. Observing the current trends, HUDCO has been receiving subscriptions for listing daily gains. It is better to avoid holding HUDCO shares for the long term as it is unlikely that there would be much return. It is better for all investors to monitor the HUDCO share price for a considerable period before deciding to invest in it.