Multibagger NBFC PSU To Buy: Large Cap PSU Declares 9% Rise In Q4 Net, Rs 2.65 Dividend

Public sector undertaking Housing & Urban Development Corporation shares (HUDCO) on May 24 declared a surge of 9.6% year-on-year (YoY) in its consolidated net profit to Rs 700 crore for the quarter ended March 31, 2024 as against the net profit of Rs 639 crore declared in the corresponding quarter of last year. Last trading price of HUDCO share on BSE is Rs 258.50 per share with intraday fall of 3.35%. Housing & Urban Development Corporation share rallied 21% return in last 2-weeks and offered whopping returns of 352% in last 1-year.

Brokerage firm Elara Capital has recommended buy call with target price of Rs 297 per share to HUDCO share. Life Insurance Corporation Of India has 8.90% stake in HUDCO with 178,236,999 shares of the company. More details below:

HUDCO Recommends Dividend: As per the BSE filing of the PSU dated May 24, 2024, "The Board of Directors also recommended final dividend @ Rs 2.65/- per equity share (subject to deduction of TDS) on the face value of Rs.10/- each, for the financial Year 2023- 24, subject to approval of shareholders in the ensuing Annual General Meeting (AGM). The final dividend is in addition to the interim dividend of Rs.1.50/- per equity share already declared and paid for the Financial Year 2023-24."
The final Dividend, if recommended, will be paid within the statutory period of 30 days from the date of approval in ensuing AGM, added the BSE filing of HUDCO.

HUDCO Q4: The PSU declared it March 2024 total income at Rs 2194 crore, up 18% as against Rs 1862 crore declared in the similar quarter of last year. The company declared its net profit at Rs 2116.69 crore for financial year 2023-24 as against Rs 1701.43 crore declared in 2022-23 financial year. Total income soared to Rs 7948.10 crore from Rs 7086.18 crore.

HUDCO Share Performance: The 52-week high price of HUDCO share on BSE is Rs 277.95 apiece (as on 23/05/2024) and 52-week low price 54.40 apiece (as on 29/05/2023). The NBFC has a market capitalisation of Rs 51,749.12 crore. HUDCO has a market capitalisation of Rs 46,994.60 crore. HUDCO shares jumped 30% in last 1-month, surged 100% year-to-date, offered return of 216% in last 6-months, and rallied 669% in last 2-years, its highest return in last 5-years.

ELARA Capital Bullish On HUDCO: According to the analyst, "HUDCO is demanding scarcity premium for being biggest beneficiary of GoI thrust on housing/infra, its niche business model characterized by high entry barriers, information asymmetry, distribution arbitrage backed by its liaison with GoI and Management stability all of which is supportive of strong business visibility."

HUDCO Dividend History: HUDCO declared 13 dividends since September 14, 2017. In last 1-year, HUDCO declared an equity dividend amounting to Rs 4.60 per share. At the current share price of Rs 258.50 per share, HUDCO share offers dividend yield of 1.78%.

HUDCO Shareholding: FII/FPI have increased holdings from 1.20% to 1.91% in Mar 2024 qtr. Number of FII/FPI investors increased from 50 to 78 in March 2024 quarter. Number of MF schemes increased from 12 to 15 in Mar 2024 quarter. Institutional Investors have increased holdings from 13.00% to 13.31% in Mar 2024 quarter, according to Trendlyne.

About HUDCO: Housing and Urban Development Corporation Ltd. (HUDCO) was incorporated as a fully owned Government Company under the Companies Act, 1956 with the main objective of financing Housing and Urban development projects in the country. Housing and Urban Development Corporation Ltd (HUDCO), is the premier techno-financing public sector enterprise.

Disclaimer: The stock has been picked from the brokerage report of Elara Capital. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.