Shares of Housing and Urban Development Corporation (HUDCO) soared by up to 10% on September 20, 2024, effectively snapping a troubling five-day losing streak. This resurgence comes after the stock experienced a decline of nearly 10% during that period.
Volume Surge
The recovery was marked by a significant increase in trading volumes, with over 3 crore shares changing hands on both the BSE and NSE. This is a dramatic rise compared to the one-month average of just 1 crore shares, indicating heightened investor interest and activity.
Impressive Yearly Performance
Over the past 12 months, HUDCO's share price has skyrocketed by an impressive 236%, vastly outperforming the Nifty, which has risen only 27% in the same timeframe. This substantial increase positions HUDCO as one of the standout stocks in the market.
New Loan Assistance Potential
A key factor contributing to HUDCO's recent surge is its announcement of potential loan assistance under the Pradhan Mantri Awas Yojana - Urban 2.0 (PMAY -U 2.0) scheme. The PSU aims to extend loan assistance ranging from ₹75,000 crore to ₹1 lakh crore, building on its previous disbursement of over ₹42,000 crore under the earlier phase of PMAY.
Infrastructure Finance Expansion
In August, HUDCO received the Reserve Bank of India's approval to register as an Infrastructure Finance Non-Banking Finance Company (NBFC). This new status allows the company to increase its exposure limits for financing various infrastructure projects, which is expected to enhance its growth potential significantly.
Strategic Partnerships
Moreover, HUDCO recently signed a memorandum of understanding (MoU) with the Yamuna Expressway Industrial Development Authority (YEIDA) to provide long-term financial assistance for projects along the Yamuna Expressway. This partnership emphasizes HUDCO's commitment to supporting urban infrastructure development through diverse funding solutions.
Current Trading Status
At 2:50 PM, HUDCO shares were trading at ₹248 on the NSE, reflecting a 7.6% increase. Year-to-date, the stock has rallied 92%, nearly doubling investors' money compared to the Nifty's more modest returns of 16%.
Conclusion: A Stock to Watch
HUDCO's remarkable rebound, combined with its strategic initiatives and impressive annual performance, makes it a stock worth monitoring closely. As the company continues to navigate the dynamic landscape of urban development financing, investors are keen to see if this momentum can be sustained.
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