Live news , top stories, corporate news, company news, sector news, economy news, results analysis news, ceo interviews, fund manager interview, advisor interview, market news, bazaar talk, hot stocks news, ipo news, commodities news, mutual fund news, insurance news, news wire
26 October, 2020 10:37 IST
HUDCO IPO: Should you subscribe?
Source: IRIS | 08 May, 2017, 10.49AM
Rating: NAN / 5 stars.
Comments  |  Post Comment

Housing and Urban Development Corporation (HUDCO) is a wholly owned Government company with focus on Housing and Urban Infrastructure Finance in India. The Government is divesting its 10% stake in the company as part of its disinvestment programs.

Angel Broking has recommended 'Subscribe' to IPO of HUDCO. Commenting on the investment rationale, the stock broker said, ''HUDCO has a unique blend of business with focus on financing both housing and urban infrastructure, which has vast untapped opportunity in India. Focus on Govt. sponsored projects and ability to raise funds at a competitive price provides earnings visibility for many years. At the issue price band of INR 56-60, the stock is offered at 1.25x-1.35x its 9MFY2017 BV, which we believe is reasonably priced, and hence, recommend Subscribe to the issue.''

GEPL Capital, said, ''HUDCO stands to gain from operating leverage and also rise in the business. At a P/E of 15.4x we believe that HUDCO at discount as compared to its domestic peers. We assign a Subscribe rating to the IPO.

Choice Equity Broking, said, ''As HUDCO generates 70% business from urban infrastructure finance and 30% from housing finance, there s no close peer to company. Given the strong fundamentals of company and favorable industry scenario, valuation looks attractive as at the higher price band of Rs60 per share, HUDCO's share is available at a P/BV multiple of 1.2(x). Average P/BV multiple of housing and infrastructure finance companies such as DHFL, LIC Housing Finance, L&T Finance Holdings, PFC and REC is currently stands at 2.1(x). We recommend Subscribe to the issue.''

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.

 Post Comment
Name Email
Security Code type    into this box
Related Articles
Home  |   Shares  |   F&O  |   Mutual Funds  |   Loans  |   Insurance  |   News Centre
Wealth Tracker  |   Newsletters  |   Tax Corner  |   NRI Centre  |   Advertise
© All rights reserved. IRIS Business Services Limited
A Disclaimer