Housing and Urban Development (HUDCO) is currently the top gainer on the BSE; from its Friday’s close of Rs.27.85, it straight opened 20% higher at Rs.33.40, hitting the UC of the day. Its 52-week high is at Rs.45.70.
The company posted a good set of earnings for Q4FY20. On a 28% (YoY) rise in net revenue at Rs.1888 crore, it posted a net profit of Rs.441 crore, a huge jump of 86%.
Provision came down from Rs.167 crore to Rs.19 crore (QoQ) and tax was much lower at Rs.104 crore v/s Rs.173 crore (YoY) and Rs.148 crore (QoQ).
Currently Govt of India owns 89.81% stake in the company. It provides housing finance and its main aim is to mainly support construction of affordable housing for lower-income households and development of non-commercial urban infrastructure.
Last week, Fitch revised the outlook on the PSU to negative from stable. "The rating action follows the revision in the outlook on India''s ''BBB-'' sovereign rating to negative from stable on June 18, 2020 as HUDCO''s rating is credit-linked to that of India," Fitch Ratings said in a statement.