HUDCO’s Net Interest Income (NII) or core income increased by 27% year-on-year from last year to ₹797 crore, while net profit rose by 52.5% year-on-year to ₹689 crore.
The company’s revenue from operations surged 35% on-year to ₹2,518 crore, compared to ₹1,865 crore in the same quarter a year ago.
In a recent note, brokerage firm Elara Securities reiterated a ‘Buy’ recommendation on HUDCO, with a price target of ₹360 per share.
According to Elara, HUDCO’s stock price has witnessed a 17% drop since its note on June 26, as the valuation rally for PSU financiers has subsided.
However, Elara notes that for a high-growth and superior asset quality play like HUDCO, this is just the initial phase of the long-drawn fundamental journey riding on India’s housing and urban infrastructure story.
Elara expects the assets under management (AUM) to grow at a CAGR of 25% during FY24-27E, along with a steady 3.5% net interest margin (NIM) and best-in-class asset quality of 1.7% gross non-performing assets (GNPA) in FY25E and 1.5-1.2% during FY26-27E.
This translates into a 22% earnings per share CAGR, with a 2.3-2.4% return on assets and 14.5-15.0% return on equities, backed by HUDCO’s numero uno position in State financing across housing and infrastructure projects.
HUDCO shares settled 7.08% higher at ₹218.50. The stock has risen over 69% so far in 2024, while over a 12-month period, the stock has gained 192%.
First Published: Oct 29, 2024 4:23 PM IST
