Housing and Urban Development Corporation Limited

Financial Services — Credit Services · NSE

₹161.20+₹0.14 (+0.09%)

DalalBaazaar Score

82 / 100

🟢 Strong

Verdict

ATTRACTIVE

Risk

Moderate

Driven by negative free cash flow.

In simple words: Strong business and financial position, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

The 60-second version of Housing and Urban Development Corporation Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Housing and Urban Development Corporation Limited provides financing and credit for housing and infrastructure development projects in India.

IndustryCredit Services

SectorFinancial Services

Employees585

Annual revenue₹3,431 Cr

How does it make money?

Turns over ₹3,431 Cr a year. Of every ₹100 of sales, about ₹118 reaches shareholders as profit. Each of its 585 employees supports ₹5.86 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹5.86 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, STATE BANK OF INDIA, HDFC BANK LTD, ICICI BANK LTD.. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 25.1% and earnings to grow about 26.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+25.1%

Est. earnings growth+26.3%

Analysts1

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +33% while net margin moved +78% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+33%

Margin effect+78%

DalalBaazaar Score

82/ 100

Strong

Weighted across six categories. Every point is explained below.

• Beta of 0.84 — moves roughly with the market
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

85/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

87/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

7.6x

3Y Median

17.5x

40 monthly readings · mean 18.0x · range 8.0x–36.7x

Sector Median

17.0x

median of 4 sector peers

🟢Current valuation is approximately 57% below its 3y median of 17.5x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 55% below the peer median of 17.0x.

vs. its own history

Cheap

17.5x median over 40 months · -57%

vs. sector peers

Cheap

17.0x median of 4 peers · -55%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

—

PEG

0.23

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from 11.0% to 18.4%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 57% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 55% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

No clear risk case emerges from the available numbers — which is not the same as there being none.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 8% a year✓ 10.0% CAGR
Latest reported year was 9.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2Return on equity stays above 16%✓ 18.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 17.5x✓ 7.6x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 10 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹32,271 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

7.6x

Cheap

Cheap against the generic band

P/B Ratio

1.47x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹21.26

Profitable

Profitable on a per-share basis

ROE

18.4%

Strong

Strong capital efficiency

ROCE

Not meaningful

N/A for lenders

Banks and NBFCs don't report capital employed the way other businesses do

Debt/Equity

6.46x

High

High leverage

Revenue Growth (YoY)

9.8%

Modest

Modest growth

Profit Growth (YoY)

34.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

3.72%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹33,934 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

6.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

90.6%

Good

Healthy core-business profitability

Net Margin

90.7%

Good

Strong bottom-line conversion

Beta (vs Nifty)

0.84

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

166.2 / 177.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

29.8

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,577 Cr	₹2,976 Cr	₹3,598 Cr	₹3,431 Cr	+10.0%
PAT (Net Profit)	₹1,701 Cr	₹2,117 Cr	₹2,709 Cr	₹4,034 Cr	+33.3%
EPS	₹8.5	₹10.57	₹13.53	₹20.15	+33.3%
ROE	11.0%	12.7%	15.1%	18.4%	—
Total Debt	₹62,907 Cr	₹74,003 Cr	₹1.07 L Cr	₹1.42 L Cr	+31.1%
Free Cash Flow	-₹853 Cr	-₹10,291 Cr	-₹31,442 Cr	-₹33,934 Cr	—

🟢 Revenue has grown at 10.0% a year over 3 years.

🟢 PAT (Net Profit) has grown at 33.3% a year over 3 years.

🟢 EPS has grown at 33.3% a year over 3 years.

🟢 ROE has risen from 11.0% to 18.4% over 3 years (+7.3 pts).

🔴 Total Debt has grown at 31.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1.67 L Cr

Total Liabilities

₹1.45 L Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹33,912 Cr

Capex

-₹22 Cr

Shareholding (proxy)

Institutional Holding

10.0%

Insider Holding

75.0%

Corporate Actions

Dividend Rate

₹6

Ex-Dividend Date

17 Aug 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹214

+32.8% vs CMP

Target Range

₹214 – ₹214

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
STATE BANK OF INDIA	10.3x	15.2%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%

Recent News

4 mixed2 general

HUDCO Share Price

Upstox, 16 Oct

HUDCO targets 2% spreads, INR65,000 crore disbursements in FY27

scanx.trade, 18 Oct

HUDCO Share Price Falls as Housing Finance Metrics Stay

Univest, 08 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

HUDCO (HUDCO.NS) Shares Edge Up 1.31% to ₹159.05, Holding Above Key Support - Breakout Stock Alerts

https://www.siam.in/, 09 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

We Ran A Stock Scan For Earnings Growth And Housing and Urban Development (NSE:HUDCO) Passed With Ease

Simply Wall St, 31 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

HUDCO shares crash 8% despite 172% YoY surge in Q4 net profit. What's spooking investors?

The Economic Times, 15 MayPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

MiddlingRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 3 tripwires holding · see Key things to watch ↑