PSU Gem HUDCO Delivers 10.50% Dividend: Q4 Results Strong, Is A Rally Coming? Technicals Say Yes

A public financial organization under the Ministry of Housing and Urban Affairs (MoHUA) is HUDCO, or the Housing and Urban Development Corporation Limited. With a market value of Rs 42,900.72 Cr, HUDCO's shares closed Wednesday's trading session 1.65% down on the BSE at Rs 214.30 a share after the BSE 500 stock after the company declared robust Q4 results along with a dividend recommendation.

HUDCO Dividend

"The Board of Directors also recommended final dividend @ Rs. 1.05/- per equity share i.e., @ 10.50% (subject to deduction of TDS) on the face value of Rs.10/- each, for the Financial Year 2024-25, subject to approval of shareholders in the ensuing Annual General Meeting (AGM). The final dividend is in addition to 1st interim dividend of Rs.2.05/- per equity share and 2nd interim dividend of Rs.1.05/- per equity share already declared and paid for the Financial Year 2024-25. After approval of the shareholders, the final dividend will be paid within the statutory period of 30 days from the date of approval," said HUDCO in a stock exchange filing.

HUDCO Q4 Results

In the final quarter of FY25, HUDCO's consolidated net profit increased by 3.93% to Rs 727.74 crore. In Q4 of FY24, the company reported a consolidated net profit of Rs 700.16 crore. Revenue from operations for Q4FY25 was Rs 2,820.88 crore, increasing 40.93% from Rs 2,001.6 crore during the same period last fiscal year. The lender's net interest income (NII), rose 26% to Rs 962 crore from Rs 761 crore in the same period last year. The company's net non-performing assets (NPA) decreased from 0.36% to 0.25%, while its gross NPA decreased from 2.71% to 1.67%. Assets under management (AUM) increased by 35%.

On a private placement basis, the Board of Directors of HUDCO (Housing Urban and Development Corporation) confirmed the issuance of unsecured, taxable, redeemable, non-convertible, and non-cumulative NCDs with face values of Rs. 1,00,000 each (Series-B 2025), totalling Rs. 2,190.00 Crore. With a base issue size of Rs. 500 crore, a green shoe option of Rs. 1680 crore, and a total issue size of Rs. 2190 crore, the NCDs carry a coupon rate of 6.90%.

HUDCO Share Price Target

"HUDCO is showing a strong upward trend with steady buying interest. The stock has good support around ₹205, and stronger buying may emerge if it dips near ₹195. On the upside, if it crosses ₹225, it could quickly move toward ₹240 or higher. The RSI is around 60, showing healthy momentum without being overbought. As long as it stays above ₹205, the outlook remains positive. Investors can look for buying on dips or on a breakout above ₹225 with volume," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

Disclaimer

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