Sharescart Research Club logo

Housing & Urban Dev. Overview

1. Business Overview

Housing & Urban Development Corporation Ltd. (HUDCO) is a public sector undertaking (PSU) under the Ministry of Housing and Urban Affairs, Government of India. It functions as a techno-financial institution providing long-term finance for housing and urban infrastructure projects across India. Its core business model involves lending to state government agencies, urban local bodies (ULBs), public sector enterprises, and other approved entities for the development of affordable housing, slum rehabilitation, water supply, sanitation, roads, and other essential urban infrastructure. HUDCO generates revenue primarily through interest income on its loan portfolio, supplemented by fees from project appraisal and consultancy services.

2. Key Segments / Revenue Mix

HUDCO's business is broadly divided into two main segments:

Housing Finance: Provides funding for various housing schemes, including those for economically weaker sections, low-income groups, rural housing, staff housing, and rental housing.

Urban Infrastructure Finance: Funds a wide range of urban development projects such as water supply, sewerage, drainage, solid waste management, roads, bridges, power generation (non-conventional), commercial infrastructure, and social infrastructure projects.

While specific revenue contributions can vary, urban infrastructure projects often constitute a significant portion of its loan book due given their scale and investment requirements.

3. Industry & Positioning

The housing and urban infrastructure finance industry in India includes commercial banks, specialized housing finance companies (HFCs), and development finance institutions. HUDCO occupies a unique niche as a government-owned development finance institution. Unlike private HFCs primarily focused on retail home loans, HUDCO's primary borrowers are state-level public bodies and government agencies. It acts as a nodal agency for several central government schemes, positioning itself as a key financier for large-scale, government-backed housing and urban development projects with a strong social mandate.

4. Competitive Advantage (Moat)

Government Backing & Nodal Agency Status: As a PSU, HUDCO benefits from implicit government support, often translating into a lower cost of funds and higher creditworthiness. Its role as a nodal agency for government initiatives like "Housing for All" (Pradhan Mantri Awas Yojana) provides preferential access to a pipeline of public sector projects.

Cost of Funds: Its PSU status enables it to raise funds through various instruments, including government-backed bonds and external borrowings, often at more favorable rates compared to many private players.

Long-standing Relationships: Decades of engagement and established relationships with state governments, municipal bodies, and public sector agencies provide a significant advantage in securing and executing projects.

5. Growth Drivers

Government Emphasis on Housing & Infrastructure: Continued strong policy push by the Indian government towards "Housing for All," Smart Cities Mission, AMRUT (Atal Mission for Rejuvenation and Urban Transformation), and other urban development initiatives ensures a steady demand for HUDCO's financing.

Rapid Urbanization: India's increasing urban population necessitates continuous investment in housing and urban infrastructure, providing a long-term growth opportunity.

Affordable Housing Focus: HUDCO's mandate aligns directly with the government's focus on affordable housing, ensuring its participation in a high-priority sector.

Access to Capital: Its ability to raise funds efficiently due to its government ownership supports its lending capacity.

6. Risks

Asset Quality and NPAs: Lending primarily to state government entities and ULBs, while having government backing, still carries risks related to project delays, cost overruns, borrower financial health, and timely repayments, which can impact asset quality and lead to Non-Performing Assets (NPAs).

Interest Rate Fluctuations: As a lending institution, adverse movements in interest rates can impact its cost of funds and net interest margins if not adequately managed.

Regulatory and Policy Changes: Changes in government policies regarding housing, urban development, or public sector undertakings can directly influence HUDCO's operational framework, funding, and profitability.

Concentration Risk: A significant portion of its loan portfolio may be concentrated in a few large projects or specific state governments, increasing exposure to localized economic or political risks.

7. Management & Ownership

HUDCO is 100% owned by the Government of India, through the Ministry of Housing and Urban Affairs. Its Board of Directors comprises government nominees and independent directors. Being a Public Sector Undertaking, strategic decisions and management appointments are significantly influenced by government policies and directives. Management quality typically comprises experienced professionals and bureaucrats whose performance is often evaluated against both financial and social development objectives.

8. Outlook

HUDCO is strategically positioned to benefit from India's sustained push towards urbanization and the government's robust focus on housing and urban infrastructure development. Its unique status as a public sector financier with a social mandate, coupled with direct government backing, provides a stable operating environment and a consistent pipeline of projects. The company's core strengths lie in its advantageous cost of funds and deep-rooted relationships with state and municipal entities. However, it faces inherent risks concerning the asset quality of large-scale public sector projects, potential political influence on lending decisions, and broader macroeconomic factors impacting project execution and repayment capabilities. Future growth will largely depend on the effective implementation of government schemes and its ability to maintain a healthy loan book while fulfilling its crucial development mandate.

Want to Start Investing in Top Unlisted Stocks?

Our experts help you choose the right stocks based on performance, risk, and growth potential.

Housing & Urban Dev. Key Financials

Market Cap ₹40270 Cr.

Stock P/E 14.9

P/B 2

Current Price ₹201.2

Book Value ₹ 102.6

Face Value 10

52W High ₹253.8

Dividend Yield 3.01%

52W Low ₹ 159

Housing & Urban Dev. Share Price

| |

Volume
Price

Housing & Urban Dev. Quarterly Price

Show Value Show %

Housing & Urban Dev. Peer Comparison

Housing & Urban Dev. Quarterly Results

#(Fig in Cr.) Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025 Mar 2026
Operating Revenue 2013 2065 2188 2518 2760 2845 2937 3219 3431 3563
Other Income 10 129 9 8 10 10 8 32 74 62
Total Income 2023 2194 2197 2526 2770 2855 2945 3251 3506 3625
Total Expenditure 12 8 47 -138 73 -28 109 147 320 587
Operating Profit 2011 2186 2150 2665 2697 2883 2836 3104 3186 3038
Interest Expense 1313 1240 1464 1662 1762 1859 1976 2147 2394 2413
Depreciation 2 2 2 3 3 4 3 3 3 4
Profit Before Tax 696 943 685 1000 932 1020 857 955 788 621
Provision for Tax 177 243 127 311 197 293 227 245 75 -1360
Profit After Tax 519 700 558 689 735 728 630 710 713 1981
Adjustments 0 0 0 0 0 0 0 0 0 0
Profit After Adjustments 519 700 558 689 735 728 630 710 713 1981
Adjusted Earnings Per Share 2.6 3.5 2.8 3.4 3.7 3.6 3.1 3.5 3.6 9.9

Housing & Urban Dev. Profit & Loss

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 TTM
Operating Revenue 3347 3205 3499 4171 5556 7532 7235 6954 7049 7784 10311 13150
Other Income 92 372 135 63 44 40 229 293 110 372 449 176
Total Income 3439 3577 3634 4234 5599 7572 7464 7247 7160 8157 10760 13327
Total Expenditure 476 594 468 525 660 544 463 361 352 342 365 1163
Operating Profit 2962 2983 3166 3709 4939 7028 7000 6886 6808 7814 10395 12164
Interest Expense 1776 1908 1986 2295 3071 4848 4765 4533 4507 4961 6748 8930
Depreciation 5 5 5 5 5 6 7 8 11 10 11 13
Profit Before Tax 1182 1076 1175 1408 1863 2174 2229 2346 2289 2843 3637 3221
Provision for Tax 403 293 333 398 683 466 650 629 588 727 928 -813
Profit After Tax 778 783 842 1010 1180 1708 1579 1716 1701 2117 2709 4034
Adjustments 0 0 0 0 0 0 0 0 0 0 0 0
Profit After Adjustments 778 783 842 1010 1180 1708 1579 1716 1701 2117 2709 4034
Adjusted Earnings Per Share 3.9 3.9 4.2 5 5.9 8.5 7.9 8.6 8.5 10.6 13.5 20.1

Growth Rates

# 1 Year 3 Year 5 Year 10 Year
Sales CAGR 32% 14% 6% 12%
Operating Profit CAGR 33% 15% 8% 13%
PAT CAGR 28% 16% 10% 13%
# 1 Year 3 Year 5 Year 10 Year
Share Price CAGR -14% 51% 34% NA%
ROE Average 16% 13% 13% 12%
ROCE Average 10% 9% 9% 9%

Housing & Urban Dev. Balance Sheet

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Shareholder's Funds 7782 8446 9168 9942 10955 12342 13188 14467 15444 16613 17968
Minority's Interest 1 1 1 0 0 0 0 0 0 0 0
Borrowings 18327 21354 24966 30060 54171 57272 59459 56918 49046 57397 75304
Current Liability 6545 5603 4817 8880 7695 6323 3756 6730 15543 18244 33969
Other Liabilities & Provisions 839 809 772 477 595 644 977 1194 1360 1637 1880
Total Liabilities 33494 36212 39723 49360 73416 76581 77380 79308 81393 93891 129122
Loans 27117 29503 33162 47104 70964 74268 74292 76990 79237 91365 124341
Investments 354 367 367 527 265 232 242 254 262 273 282
Fixed Assets 75 73 72 48 50 46 63 75 69 69 69
Other Loans 47 47 43 2 2 1 1 1 1 0 10
Other Non Current Assets 52 57 62 35 39 52 39 25 19 773 1941
Current Assets 5850 6166 6017 1621 2077 1963 2724 1944 1783 1392 2460
Total Assets 33494 36212 39723 49360 73416 76581 77380 79308 81393 93891 129122

Housing & Urban Dev. Cash Flow

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Opening Cash & Cash Equivalents 72 81 141 48 72 111 223 1286 560 48 370
Cash Flow from Operating Activities -188 -4965 -2598 -7830 -23400 -1336 2161 -806 -851 -10287 -31603
Cash Flow from Investing Activities -21 372 -5 -4 18 83 -14 -1 -352 435 -939
Cash Flow from Financing Activities 218 4653 2509 7858 23422 1365 -1083 81 691 10174 32215
Net Cash Inflow / Outflow 9 60 -93 24 39 112 1063 -726 -512 322 -326
Closing Cash & Cash Equivalent 81 141 48 72 111 223 1286 560 48 370 44

Housing & Urban Dev. Ratios

# Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Earnings Per Share (Rs) 3.89 3.91 4.21 5.04 5.89 8.53 7.89 8.57 8.5 10.57 13.53
CEPS(Rs) 3.91 3.93 4.23 5.07 5.92 8.56 7.92 8.61 8.56 10.62 13.59
DPS(Rs) 0.5 0.5 0.55 0.55 0.83 3.1 2.18 3.5 3.85 4.15 4.15
Book NAV/Share(Rs) 38.87 42.19 45.79 49.66 54.72 61.65 65.88 72.27 77.14 82.98 89.76
Net Profit Margin 23.26 24.43 24.07 24.21 21.24 22.68 21.82 24.68 24.14 27.19 26.27
Operating Margin 88.37 93.1 90.37 88.78 88.8 93.23 96.67 98.91 96.41 100.26 100.71
PBT Margin 35.31 33.58 33.59 33.76 33.53 28.87 30.8 33.73 32.47 36.53 35.27
ROA(%) 2.32 2.25 2.22 2.27 1.92 2.28 2.05 2.19 2.12 2.42 2.43
ROE(%) 10 9.65 9.56 10.57 11.29 14.66 12.37 12.41 11.38 13.21 15.67
ROCE(%) 10.4 9.57 8.87 8.86 8.43 9.71 9.45 9.16 8.81 9.24 9.62
Price/Earnings(x) 0 0 0 13.15 7.63 2.34 5.57 3.81 5.1 17.71 14.73
Price/Book(x) 0 0 0 1.34 0.82 0.32 0.67 0.45 0.56 2.26 2.22
Dividend Yield(%) 0 0 0 0.83 1.84 15.54 4.95 10.7 8.88 2.22 2.08
EV/Net Sales(x) 6.69 8.38 8.54 11.8 12.33 8.63 9.45 9.69 10.14 14.27 14.27
EV/Core EBITDA(x) 7.56 9 9.43 13.27 13.87 9.25 9.76 9.79 10.5 14.22 14.16
Interest Earned Growth(%) 0 -4.24 9.18 19.22 33.19 35.57 -3.95 -3.88 1.37 10.42 32.46
Net Profit Growth 0 0.56 7.59 19.91 16.83 44.78 -7.59 8.74 -0.87 24.41 27.99
EPS Growth(%) 0 0.56 7.6 19.91 16.83 44.78 -7.59 8.74 -0.87 24.41 27.99
Interest Coverage(x) % 1.67 1.56 1.59 1.61 1.61 1.45 1.47 1.52 1.51 1.57 1.54

Housing & Urban Dev. Shareholding Pattern

# Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025 Mar 2026
Promoter 75.17 75 75 75 75 75 75 75 75 75
FII 1.2 1.91 2.7 2.32 2.08 2.46 1.96 1.94 1.97 2.22
DII 11.8 11.39 11.64 9.04 9.75 9.69 10.26 10.92 11.46 11.03
Public 11.83 11.7 10.66 13.63 13.17 12.85 12.78 12.14 11.57 11.74
Others 0 0 0 0 0 0 0 0 0 0
Total 100 100 100 100 100 100 100 100 100 100

Housing & Urban Dev. News

Housing & Urban Dev. Pros & Cons

Pros

Cons

  • Company has a low return on equity of 13% over the last 3 years.
  • The company has delivered a poor profit growth of 9% over past five years.
whatsapp