At a Glance
HUDCO’s stock is up 3x in two years. Why? Because everyone suddenly loves boring infrastructure finance. With rising urban spending and a ₹48,000 Cr market cap, this PSU looks tempting — but is it worth paying2.67x Book Valuefor a 9% ROCE business?
1️⃣ What Even Is HUDCO? 🤔
- HUDCO =Housing and Urban Development Corporation
- PSU under Ministry of Housing & Urban Affairs
- Core biz = lend to:
- State governments
- Municipal bodies
- Infrastructure agencies
🚫 No home loans to you and me.✅ Yes to Smart Cities, piped water, sewers, metros, and public housing.
It’s agovernment infra lender— kind of like REC, but
with a real estate and urban touch.
2️⃣ The Numbers They Don’t Want You To Notice 👀
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 7,267 | 6,986 | 7,082 | 7,829 | 10,311 |
| Net Profit (₹ Cr) | 1,578 | 1,716 | 1,701 | 2,117 | 2,709 |
| Net Interest Margin | 31% | 34% | 32% | 35% | 35% |
| ROE | 12% | 12% | 11% | 13% | 16% |
| Dividend Payout % | 28% | 41% | 45% | 39% | 31% |
| Borrowings (₹ Cr) | ₹60,978 | ₹61,503 | ₹62,905 | ₹73,996 | ₹1,07,297 |
✅ Profit growth: 16% CAGR (3Y)✅ Revenue growth: 14% CAGR (3Y)❌ But ROCE still stuck at ~9.6%❌ And that valuation multiple is looking spicy…
3️⃣ Let’s Talk Valuation: ₹240 Too Hot?
- EPS (FY25): ₹13.5
- CMP: ₹240
- P/E: 17.7
- Book Value: ₹89.8 →P/B: 2.67x
- Dividend Yield:
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