Dividend Stock: Multibagger PSU Demonstrates Bullish Trajectory, Buy For TP Rs 242: Axis Securities

Shares of renowned public sector undertaking Housing & Urban Development Corporation shares (HUDCO) saw rally of over 3% in trade today to settle at Rs 182.25 per share. Housing & Urban Development Corporation shares gained 313% in last 1-year. The PSU on March 20 recommended an interim dividend of Rs 1.50 per share of Rs 10/- each. The board fixed March 29, 2023 as the record date for dividend.

The board also approved fund raising via issue of bonds/debentures, up to a maximum amount of Rs. 40,000 Crore during financial year 2024-25, depending upon actual funds requirement. Meanwhile, brokerage firm Axis Securities has recommended buy call with near term target price of Rs 223 and feels that the stock may finally head towards Rs 242/share. Check details below:

HUDCO Recommends Interim Dividend: As per the BSE filing of the company dated March 20, "The Board of Directors in their meeting held on 20" March, 2024 i.e., today, has approved the declaration of Interim Dividend for the financial year 2023-24 @ 15%, Rs. 1.50/- per equity share of Rs. 10/- each."

HUDCO Shares Performance & Return: The 52-week high price of HUDCO share on BSE is Rs 226.95 apiece and 52-week 40.50 apiece, respectively. HUDCO has a market capitalisation of Rs 36,484.63 crore. HUDCO has a PE of 17.75 and ROE of 13.07. Its TTM (EPS) is 10.27. HUDCO shares declined 10% in last 2-weeks only, surged 41% year-to-date, offered return of 152% in last 6-months, gave return of 416% in last 1-year.

HUDCO Financials: The company on February 9, 2024 declared a surge of two-fold in its standalone profit after tax at Rs 519.19 crore for the quarter ended December 31, 2023. HUDCO had announced its standalone profit after tax (PAT) at Rs 254.32 crore for corresponding quarter of last year, as per its BSE filing. Its revenue from operations for the December 2023 quarter declared at Rs 2012.66 crore, up 18% as against Rs 1708.9 crore in the similar quarter of last year. The company said its PAT for April-December period rallied 33% YoY to Rs 1416.58 crore and revenue from operations during this tenure soared 10% to Rs 5719.07 crore.

Axis Securities Recommends Buy: The analyst said, "the recent bounce at the trendline further affirms the continuation of the uptrend." Axis Securities said the daily strength indicator RSI has demonstrated a bullish crossover above its reference line, indicating a positive sentiment. The brokerage said that the near-term target of HUDCO share is at Rs 223 and feels that the stock may finally rally towards Rs 242.

About HUDCO: Housing and Urban Development Corporation Ltd. (HUDCO) was incorporated as a fully owned Government Company under the Companies Act, 1956 with the main objective of financing Housing and Urban development projects in the country. Housing and Urban Development Corporation Ltd (HUDCO), is the premier techno-financing public sector enterprise.

Disclaimer: The stock has been picked from the brokerage report of Axis Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.