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INVESTMENT INSIGHTS

Check Before You Invest : Housing & Urban Development Corporation Ltd

BSE: 540530 NSE: HUDCO ISIN: INE031A01017
  |   Sector:  BFSI   |   Industry:  Finance - Housing

Snapshot

Q.1 Which industry/sub-sector does Housing & Urban Development Corporation Ltd belong to?
Housing & Urban Development Corporation Ltd belongs to the BFSI sector, operating specifically within the Finance - Housing segment.
Q.2 Is Housing & Urban Development Corporation Ltd a good quality company?
Housing & Urban Development Corporation Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q.3 Is Housing & Urban Development Corporation Ltd undervalued or overvalued?
Housing & Urban Development Corporation Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 9.39 10.30
Price to Book 1.75 2.09
Price to Sales 2.88 3.42
EV to EBITDA 14 9.69
Q.4 Is Housing & Urban Development Corporation Ltd a good buy now?
Housing & Urban Development Corporation Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Total Income growth, NPM, PPOP, RoA and RoE compared to its last 5-year median.

  • How efficiently has it grown and managed operations?

    By checking its Total Asset growth.

  • How strong is its Capital position and Asset Quality?

    By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in income and profitability?

Q.1 Total Income growth of Housing & Urban Development Corporation Ltd?
Housing & Urban Development Corporation Ltd Operating Income growth is 27.53% for FY-2026, which is above its 5-year CAGR of 12.7%, indicating faster growth.

Q.2 Return on Assets of Housing & Urban Development Corporation Ltd?
Housing & Urban Development Corporation Ltd Return on Asset is 2.7%, which is above its 5-year historical median of 2.4%, indicating improved earnings on assets.
Current Level 5-year
Historic Median
NPM (%) 30.68 26.27
PPOP (%) 14.7 14.7
RoA (%) 2.7 2.4

Q.3 Return on Equity (ROE) of Housing & Urban Development Corporation Ltd?
Housing & Urban Development Corporation Ltd Return on Equity is 20.2% for FY-2026, which is above its 5-year historical median of 13.2%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Housing & Urban Development Corporation Ltd?
Housing & Urban Development Corporation Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 14.7% for FY-2026, which is in line with its 5-year median(14.7%), indicating stable margins.

Q.5 Net Profit Margin of Housing & Urban Development Corporation Ltd?
Housing & Urban Development Corporation Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 30.68% for FY-2026, which is above its 5-year median( 26.27%), indicating increasing margins.

Q.6 Does its ROIC exceed its WACC?
Housing & Urban Development Corporation Ltd return on invested capital (ROIC) is 7.12% for FY-2026, is lower than its estimated weighted average cost of capital (WACC) of 11.25%, indicating value erosion.

B: Does the bank grow efficiently and manage its operating costs?

Q.7 Total Asset growth of Housing & Urban Development Corporation Ltd?
Housing & Urban Development Corporation Ltd Total Asset growth is 29.33% for FY-2026, which is above its 5-year CAGR of 16.63%, indicating faster growth.

Ownership & governance

D: Promoter shareholding and pledge status of Housing & Urban Development Corporation Ltd?

Q.1 Promoter shareholding and pledge status of Housing & Urban Development Corporation Ltd?
Promoters hold 75.00% of the Housing & Urban Development Corporation Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Housing & Urban Development Corporation Ltd performance compare with that of its Peers?

Q.1 AUM Growth of Housing & Urban Development Corporation Ltd vs Industry Peers?
Housing & Urban Development Corporation Ltd AUM CAGR is 16.63%, compared to the 5-year industry median CAGR of 16.63%, indicating stable growth and maintaining its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Housing & Urban Development Corporation Ltd vs industry peers
Housing & Urban Development Corporation Ltd profit metrics are in line with the industry median level of 13.18%, indicating similar profitability compared to peers.
Profit Metrics
Current Level 5-year
Industry Median
NPM (%) 30.68 22.64
PPOP (%) 14.7 14.7
RoA (%) 2.7 2.2

Q.3 Operating efficiency of Housing & Urban Development Corporation Ltd vs industry peers?
Housing & Urban Development Corporation Ltd ROCE (9.2) is in line with the industry median of (8.8); while the current ROE (13.2) are in line with than the 5-year average Industry ROE (13.2). This shows that the business is positioned in the middle quartile of the industry.
Operating Efficiency
Current Level 5-year
Industry Median
NPM (%) 30.68 22.64
PPOP (%) 14.7 14.7
RoA (%) 2.7 2.2
ROCE (%) 8.4 8.8
ROE (%) 20.2 13.2

Valuation & price assessment

Q.1 Stock return of Housing & Urban Development Corporation Ltd over the last decade?
Over the last 5 years, the stock has delivered a CAGR of 34.64% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR		 - 34.6% 47.4% -9.9%
Q.2 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median		 5-year
Industry Median
Price to Earnings 9.39 10.30 14.87
Price to Book 1.75 2.09 1.28
Price to Sales 2.88 3.42 3.57
EV to EBITDA 14 9.69 10.71
Q.3 Valuation ratios of Housing & Urban Development Corporation Ltd vs historical and industry averages?
The current Price-to-Book (P/B) ratio of 1.75 is lower than its historical median of 2.09, indicating that the stock is trading below its historical average valuation.

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