Housing & Urban Development Corporation (HUDCO) Ltd shares continued to fall on Monday for the second consecutive session. The stock tanked 8.75 per cent to settle at Rs 198.15. At this price, it has tumbled 13.71 per cent in two trading days and 44.01 per cent from its record high value of Rs 353.95, seen on 12 July last year.
The weakness in most housing PSUs, including HUDCO, came as the Budget 2025-26 data showed that the Centre allocated Rs 19,794 crore for Pradhan Mantri Awas Yojana (PMAY)-Urban, which was down 34.39 per cent from Rs 30,171 crore allocated in 2024-25. The latest allocation is also lower than the actual expenditure of Rs 21,684 crore in 2023-24. With that being said, the budget allocation for 2025-26 shows a 44.79 per cent rise compared to a revised estimate figure of Rs 13,670 crore for 2024-25.
A market expert said investors can hold on to the counter. Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "HUDCO's December (2024) quarter results have been fairly good for the company. The current downtrend in the market and PSU stocks' underperformance are impacting the counter. Investors with a long-term horizon can consider holding on to the stock."
The company posted a net profit of Rs 735 crore for the third quarter of FY25, up 41.6 per cent year-on-year (YoY). It reported a YoY increase of 37.14 per cent in revenue from operations, at Rs 2,760.23 crore, in Q3 FY25.
On technical setup, a few analysts suggested that the stock looked 'weak' on daily charts. Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, "HUDCO has plunged nearly 10 percent in the day and headed for its 52 weeks low. The counter has seen strong sell-off from last two trading sessions. The zone of Rs 190-185 withholds strong significance and any breakdown is likely to disrupt the technical structure for the counter. On the flip side, a series of resistances are placed from Rs 210-215 to Rs 225-230 levels and a decisive breakthrough could only overpower the ongoing trend in the counter."
Sebi-registered research analyst AR Ramachandran said, "HUDCO is bearish on daily charts with strong resistance at Rs 217. A daily close below support of Rs 199 could lead to a downward target of Rs 175 in the near term."
The stock traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 36.58. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The company's stock has a price-to-equity (P/E) ratio of 16.21 against a price-to-book (P/B) value of 2.76. Earnings per share (EPS) stood at 13.40 with a return on equity (RoE) of 17.05.
As of December 2024, promoters held a 75 per cent stake in the housing state-run firm.