HUDCO is a wholly owned Government company with focus on Housing and Urban Infrastructure Finance in India. The Government is divesting its 10% stake in the company as part of its disinvestment programs.
HUDCO has a unique blend of business with focus on financing both housing and urban infrastructure, which has vast untapped opportunity in India. Focus on Govt. sponsored projects and ability to raise funds at a competitive price provides earnings visibility for many years. At the issue price band of Rs56-60, the stock is offered at 1.25x-1.35x its 9MFY2017 BV, which we believe is reasonably priced, and hence, recommend SUBSCRIBE to the issue.
