HUDCO – The Housing & Urban Development Corporation (HUDCO) Ltd announced on Wednesday that it has signed a non-binding memorandum of understanding (MoU) with the Rajasthan government to provide financial assistance for housing and urban infrastructure projects in the state. The MoU outlines an in-principle agreement for funding up to Rs 1,00,000 crore over the next five years, subject to mutually agreed terms and conditions.
The MoU was signed by Sanjay Kulshrestha, Chairman and Managing Director of HUDCO, and Debasish Prusty, IAS, Secretary to Government, Finance (Budget) Department, Rajasthan. The signing ceremony was attended by Bhajan Lal Sharma, Chief Minister of Rajasthan.
“This collaboration with the Rajasthan government aims to significantly boost the state’s housing and urban infrastructure sectors, providing much-needed financial support for large-scale projects,” said Sanjay Kulshrestha during the signing event.
HUDCO Shares Surge
Following the announcement, HUDCO shares experienced a notable increase, climbing 5.45 per cent to reach a day high of Rs 323.90. At the time of writing, the shares were trading 1.53 per cent higher at Rs 311.85. The stock has gained 141.46 per cent on a year-to-date (YTD) basis.
The trading volume on the BSE saw a spike, with around 33.69 lakh shares changing hands, compared to the two-week average volume of 27.11 lakh shares. The turnover on the counter stood at Rs 104.81 crore, with the company commanding a market capitalization of Rs 62,299.13 crore.
Technical Analysis
From a technical standpoint, HUDCO’s stock traded below its 5-day, 10-day, and 20-day simple moving averages (SMAs) but remained above the 30-day, 50-day, 100-day, 150-day, and 200-day SMAs. The stock’s 14-day relative strength index (RSI) was recorded at 53.20, indicating a balanced position between overbought and oversold conditions.
Financial Metrics
HUDCO’s stock has a price-to-equity (P/E) ratio of 29.05 and a price-to-book (P/B) value of 3.91. The company’s earnings per share (EPS) stand at 10.57, with a return on equity of 13.46 per cent. As of June 2024, promoters held a 75 per cent stake in the public sector undertaking (PSU).
This significant agreement with the Rajasthan government is expected to propel HUDCO’s efforts in enhancing urban development and housing infrastructure, reinforcing its role as a key player in India’s urban planning and development landscape.
Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAM, and TWITTER