The stock rose 15.28 per cent to hit a high of Rs 234.20 on BSE. ICRA on April 24 suggested a stable outlook for HUDCO, as it feels the PSU will remain strategically important to the government.Multibagger stock Housing & Urban Development Corporation Ltd (HUDCO) rallied 15 per cent to hit a fresh record high on Friday, taking its one-year gains to 369 per cent. This was the sixth day of gains for HUDCO shares amid optimism over its business prospects after the government accorded Navratna status to the PSU, with the rating agency ICRA also re-affirming its credit rating on the company.
ICRA on April 24 suggested a stable outlook for HUDCO, as it feels the PSU will remain strategically important to the government for the implementation of its policy in the high priority housing and urban development sectors. HUDCO is likely to maintain adequate profitability, borrowing, and capitalisation profiles, it said.
On Friday, the HUDCO stock rose 15.28 per cent to hit a high of Rs 234.20 on BSE.
HUDCO’s borrowing programmes derive significant strength from its sovereign ownership (75.17 per cent government stake) and its important role as a nodal agency for the implementation of government policies in the high priority sectors of social housing and urban infrastructure.
The ratings, ICRA said, also draw comfort from the relatively low credit risk profile of HUDCO’s portfolio, given the focus on government-sponsored urban infrastructure and other projects backed by guarantees and budgetary provisions from central/state governments for debt servicing by the concerned entities.