Shares of Housing & Urban Development Company Ltd. (HUDCO) fell as much as 10% on Monday, February 3, in-line with the broader sell-off seen in the PSU stocks. The stock had declined over 5.5% on Saturday as well, during the Union Budget speech.CompanyValueChange%ChangeThe reduced allocation for the PMAY CLSS scheme could be negative for the housing finance companies in the affordable segment, Motilal Oswal wrote in its note. The total allocation under the PMAY CLSS was cut to ₹3,500 crore from ₹4,000 crore last year. The allocation the middle-income group remains unchanged.HUDCO addresses the housing needs to low income groups and the economically weaker sections.
With Monday’s fall, HUDCO shares have dropped 45% from their 2024-peak of ₹353.
On the charts, shares of HUDCO are yet to fall into “oversold” territory as its Relative Strength Index (RSI) is at 36. An RSI reading below 30 indicates that the stock is in “oversold” territory.In an interaction with CNBC-TV18 on December 11 last year, HUDCO’s management had said that they were hopeful that the PMAY 2.0 will be big for the company.They also spoke of NPAs, saying that HUDCO has the lowest NPA in the industry and guided for gross NPA to be at 2.3% by the end of financial year 2025.Despite the stock having corrected from its peak, India’s Mutual Funds have increased their stake in the company between the October-December period. Mutual Funds now own a 1.83% stake in HUDCO, compared to 0.77% in the September quarter.However, retail investors, or those with an authorised share capital of up to ₹2 lakh, have marginally trimmed their stake in the stock. However, there are still 8.98 retail investors, who have a 9.88% stake in HUDCO, in comparison to 9.06 lakh shareholders, who earlier had a 10.19% stake in September.Shares of HUDCO are currently trading 8.6% lower at ₹198.65.
