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Nirmal Bang Report
We initiate coverage on Housing and Urban Development Corporation Ltd. with a ‘Buy’ rating and a target price of Rs 375, implying an upside of 15% from current market price.
Key factors that reinforce our positive view are:
Strategic position in Government plans.
Huge growth opportunity in infra lending space.
Government exposure at 97.5% of loan book.
NIM to improve.
Strong capital position.
In our view, due to its niche position in social housing and urban infrastructure financing, its ability to grow faster due to its robust capital position, improving margins and low risk on balance sheet, HUDCO’s premium valuations should sustain.
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Also Read: Consumer Durables Q1 Results Preview - Healthy Demand, Driven By Season: Prabhudas Lilladher
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