IPO: Housing And Urban Development Corporation Limited (HUDCO)
Government owned Housing and Urban Development Corporation Limited (HUDCO) is planning to raise about Rs. 1225 Crore through an initial public offering (IPO).
Company Background
Started in 1970, Housing and Urban Development Corporation Limited (HUDCO) is a fully-owned Government undertaking with over 46 years of experience in giving loans for urban infrastructure and housing projects in India.
Working Area
HUDCO provide long-term finance for
(1) Construction of houses (and to undertake housing) and
(2) Urban infrastructure development programs.
HUDCO also offers
(1) Consultancy services,
(2) Promotes research and studies and
(3) Help propagate use of local building materials, cost-effective and innovative construction technologies.
Under urban infrastructure finance –
HUDCO makes loans for projects relating to power, roads and transport, water supply, emerging sectors, which includes gas pipelines, industrial infrastructure, SEZs (special economic zones), oil terminals and telecom sector projects, commercial infrastructure which includes shopping centres, market complexes, malls-cum-multiplexes, hotels and office buildings, social infrastructure and area development, and sewerage, drainage and solid waste management.
Company Promoters
Company’s Promoter is the President of India.
IPO Details
IPO Date & Listing
Financial Performance
Revenues:
The Company shows superb revenue growth in recent years. Topline has been increasing regularly for the last four years and jumped from INR 2779 crore in FY2012 to INR 3350 crore for the year ended March 2016.
Profits:
Though the company has shown superb growth in revenue, the company has also registered impressive profits in these years. Starting from INR 622 crore of profit in FY2012, the company’s earning improved to INR 811 crore in FY2016.
Margin:
The company has shown and maintain impressive net profit margin in these years ( between 22% to 24% )
CONCLUSION –
Considering company’s valuation and long-term perspective, FinBlab recommends SUBSCRIBE ratings on this issue.
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