Housing finance companies (HFCs) are on a roll on the bourses with several HFCs outperforming the markets. HUDCO is one stock that is joining the party late.
On Thursday, HUDCO saw a 10-day moving crossover even as the stock made a fresh 52-week high on Friday. In one month, the stock is up by more than 13 per cent while in a one-year period, the stock is up by 116 per cent. A high dividend payout is one of the attractive features of the stock. At the current price, HUDCO reflects a dividend yield of nearly 6 per cent. The stock at the current price reflects a low PE of 7.20 and can be expected to gain from the positive sentiment and momentum in HFCs.
HUDCO is a wholly-owned government company with more than 46 years of experience in providing loans for housing and urban infrastructure projects in India. It holds the status of Miniratna (Category-I public sector enterprise) conferred by the Government of India (GoI). HUDCO is under the administrative control of the Union Urban Development Ministry. The company finances social housing & residential real estate by primarily lending to the state governments and their agencies, such as DAY-NULM, JNNURM, and PMAY-HFA (Urban).