Our 6th company in the Series of Best Stocks Below Rs. 50 is Housing and Urban Development Corporation Ltd.
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
Housing And Urban Development Corporation Limited is a techno‐financing company which provides long term finance for construction of houses for residential purposes or finance or undertakes housing and urban development programs in the country.
Now Let’s check the important fundamental figures of this company. This is a small cap company with Market Cap ₹9,058cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 5.74
Sector PE Ratio: 28.17
PE Ratio of this company is low but better than Sector’s PE. So it’s a Average PE than the peers of this company.
PB Ratio : 0.69
Sector PB Ratio : 2.39
PB Ratio of this company is low than Sector’s PB ratio. So it’s Average PB than the peers of this company.
Dividend Yield : 4.82%
Sector Dividend Yield : 0.53%
Dividend Yield of this company is high than Sector. Dividend of this company is Good than the peers of this company.
ROE (Return on equity) and ROCE (Return on capital equity) is Below Average
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021, Company have 63,770.00 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
Debt Level: Housing and Urban Development Corporation Ltd debt to equity ratio (462.2%) is considered high.
Reducing Debt: Housing and Urban Development Corporation Ltd debt to equity ratio has increased from 305.2% to 462.2% over the past 5 years.
Debt Coverage: Housing and Urban Development Corporation Ltd debt is not well covered by operating cash flow (3.5%).
Interest Coverage: Insufficient data to determine if Housing and Urban Development Corporation Ltd interest payments on its debt are well covered by EBIT.
Share Holding Pattern
|Promotor Holding||Foreign Institution|
|Other Domestic Institutions||Retail & Others|
Above table showing there is no big change in Promotors holding which is 89.81% in June 2021. FIIs invested in June 2021 with 0.13% and retail investor is 7.91%.
Now We’ll check the return of the company, This company started from Rs. 66.65 at 24 May 2017. This company given 36.30% returns in last 1 year from 2020 to 5 Oct 2021.
Investment Checklist for Housing and Urban Development Corporation Ltd.
- The company is currently profitable
- Earnings have grown by 14.2% per year over past 5 years
- Share price has been stable over the past 3 months
- The company’s earnings are high quality
- Profit margins improved or Housing and Urban Development Corporation Ltd became profitable
- At least 3 years of financial data is available
- No concerning events detected
- Shareholders have not been meaningfully diluted in the past year or recently listed
- Revenue is meaningful (₹26B)
- Market cap is meaningful (₹91B)
- Housing and Urban Development Corporation Ltd does not have negative shareholders equity.
- No 3 month insider trading information
- Debt is not well covered by operating cash flow
According to its historical performance we can predict stock target.
Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
Hope you liked Our 6th company in the Series of Best Stocks Below Rs. 50. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
Disclaimer: This is an Educational Initiative and is NOT registered under any SEBI regulations. All the information that we provide is just for Educational purposes and you should consult your financial adviser before taking any investment decision. Also we do NOT provide any form of Stock Tips or Advise on stocks or portfolios. My All Trades Only Education Purpose. All trades will be at your risk. You have the responsibility of any trade or any benefit or loss