HUDCO with a loan book of of 78000 crore has gorwn at a CAGR of 15% in the last 5 years.
The housing segment forms majority of the AUM with 57%, followed by Urban Infrastructure forming 43% of the AUM and balance by HUDCO Niwas as on March 31, 2022.
HUDCO has majorly lent to the government sector forming 97% of AUM as on March 31, 2022, as it had ceased its lending towards private sector since 2013. Furthermore, 91% of gross loans as on March 31, 2022, have been secured by government guarantee leading to lower credit risk.
Highest AAA rating from ICRA and CARE.
Trading at 0.7 times P/B.
Looks a good buy at these valuations.
Could someone share some anti-thesis pointers on why it can not be re-rated to 1.2/1.5 times P/B.
D: Studying, not invested.
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