Housing & Urban Development Corporation Ltd.
NSE: HUDCOHousing & Urban Development Corporation Ltd.: A 30-second snapshot
HUDCO (Housing and Urban Development Corporation) trades at ₹219.49 with a trailing PE of 16.1 and forward PE of 8.9, above both its 50-DMA (₹190.78) and 200-DMA (₹208.52). The company reported FY26 net profit of ₹4,034 crore and Q4 PAT up 172% YoY, while carrying a D/E of 705.8 — structural for a government-backed housing finance company — and a 5-year earnings CAGR of -3% against 16.1% revenue growth. Quality score stands at 37/100, ranking 4th of 6 in its designated peer group.
P/E
16.1
Forward P/E
8.9
ROE
—
Debt / Equity
705.76
Profit Margin
+61.5%
Div. Yield
+2.5%
5Y ROE > 15%
1/5
5Y FCF > 0
0/5
Quality
40/100
News
8 headlines · 6 positive · 0 negative
HUDCO FY26 Net Profit Rises to ₹4,034.37 Cr - scanx.trade
scanx.trade
HUDCO Q4 Results: Cons PAT jumps 172% to ₹1,981 crore, NII up 16.5%; ₹1.5 dividend announced - Mint
Mint
HUDCO Rating Affirmed AAA; Borrowing Limit Soars to ₹3.44 Lakh Crore - Whalesbook
Whalesbook
Union Minister Manohar Lal Says ₹1 Lakh Crore to Be Spent on Urban Development in Four Years - News On AIR
News On AIR
HUDCO Loan Plan Approved As Maharashtra Sets Timeline For Three Major Vidarbha Expressways - Swarajyamag
Swarajyamag
Recent context
- ·HUDCO reported Q4 FY26 PAT of ₹1,981 crore, up 172% YoY, with NII rising 16.5% and FY26 full-year net profit of ₹4,034 crore; a ₹1.5 per share dividend was announced alongside results.
- ·Credit rating agency reaffirmed HUDCO's AAA rating and approved an increase in the borrowing limit to ₹3.44 lakh crore, providing a larger ceiling for loan disbursement growth.
- ·The government reiterated a plan to spend ₹1 lakh crore on urban development over four years, and HUDCO's loan approval for Maharashtra's Vidarbha Expressways project signals continued alignment of the company's book with public infrastructure mandates.
Strengths
- +Profit margin of 61.5% reflects the high-yield nature of HUDCO's government-linked housing and infrastructure lending book, a structural characteristic of the business model.
- +Revenue has grown at 16.1% CAGR over 5 years, consistent with expanding urban development lending mandated by government housing schemes including the ₹1 lakh crore urban development spend referenced in recent policy commentary.
- +Price is currently 5.3% above the 200-DMA (₹208.52) and 15.0% above the 50-DMA (₹190.78), having gained 13.4% over 3 months; 52-week drawdown is a relatively contained -11.1%.
- +AAA credit rating reaffirmed (per recent news) and borrowing limit raised to ₹3.44 lakh crore, supporting continued loan book expansion within the government-backed mandate.
Weaknesses
- −Earnings CAGR of -3% over 5 years against 16.1% revenue growth signals a persistent wedge at the bottom line; the business has not converted topline scale into compounding profits over the measurement window.
- −FCF has been positive in 0 of tracked years with a rising debt trend; the lending model is inherently capital-consumptive, requiring continuous access to bond markets and government support to fund growth.
- −ROE data is unavailable; in the one year where ROE exceeded 15%, it was the sole instance — consistency score of 30/100 and quality score of 37/100 both reflect limited return quality persistence.
- −Sector peer group (banking and diversified financials) is not directly comparable to HUDCO's government housing finance mandate; quality and PE rankings relative to AXISBANK, BAJFINANCE, and HDFCBANK should be interpreted with caution.
Open questions
- ?Does the 172% YoY jump in Q4 PAT reflect a structural improvement in provisioning and asset quality, or does it primarily reflect a low base from elevated credit costs in the prior year?
- ?Given that 5-year earnings CAGR is -3% despite 16.1% revenue growth, what has driven the divergence — provisioning norms, interest cost escalation, or one-time items — and has that pressure abated in FY26?
- ?How sensitive is HUDCO's cost of borrowing and loan book growth to a shift in the government's urban development budget priorities or a change in sovereign rating support for AAA-rated PSU bonds?
- ?Does the forward PE of 8.9 versus trailing PE of 16.1 embed an expectation of sustained earnings acceleration, and what assumptions about credit growth and provisioning would need to hold for that compression to materialise?
Peer comparison: Banking
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| HUDCO | Housing & Urban Development Corporation Ltd.You're viewing | 16.1 | — | 37 |
| Industry avg | across 5 peers | 32.0 | +14.2% | 39 |
| AXISBANK | Axis Bank Ltd. | 14.8 | +13.2% | 53 |
| BAJFINANCE | Bajaj Finance Ltd. | 29.9 | +17.9% | 53 |
| HDFCBANK | HDFC Bank Ltd. | 17.2 | +13.8% | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 29.1 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 69.1 | +11.3% | 20 |
Technical state
Current price
₹219.49
SMA 50
₹190.78
SMA 200
₹208.52
RSI (14)
62.0 (neutral)
From 52w high
-11.1%
1Y return
+8.2%
3M return
+13.4%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highEarnings growth of -3% CAGR over 5 years against revenue growth of 16.1% CAGR indicates that revenue expansion has not translated to bottom-line gains, suggesting persistent provisioning pressure, margin compression, or recurring non-operating charges.
- highFCF positive in 0 of tracked years with a rising debt trend; D/E of 705.8 is structural for an NBFC/HFC, but the combination of zero FCF years and a rising debt load means the business is continuously reliant on external capital.
- highROE data is unavailable; roeYearsAbove15 = 1 out of tracked years and a consistency score of 30/100 indicate limited quality persistence, with quality score of 37 ranking 4th of 6 in the peer group.
- mediumHUDCO is classified under a Banking peer group (AXISBANK, HDFCBANK, BAJFINANCE, BAJAJFINSV, HDFCLIFE) but operates as a government-backed housing finance company; relative PE and quality rankings carry limited comparability against this peer set.
- lowAnalyst coverage limited to 1 analyst with no consensus rating available; sell-side signal is not meaningful at this coverage depth.
Cross-section contradictions
- Revenue has compounded at 16.1% over 5 years and reported profit margin is 61.5%, yet 5-year earnings CAGR is -3% — the divergence between top-line growth and bottom-line contraction points to a consistent wedge from provisioning, taxes, or non-operating items that is not visible in the margin figure alone.
- News sentiment is entirely positive (6 positive, 0 negative across 8 headlines) with Q4 PAT up 172% YoY reported, yet the 5-year earnings CAGR remains negative at -3%, suggesting the strong FY26 result may represent a recovery from prior-year lows rather than sustained compounding.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 24 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 15 May 2026 · rotates through NIFTY 500 every ~5 days