HUDCO signs MoU with Rajasthan government; stock jumps 5%

Housing & Urban Development Corporation (HUDCO) Ltd on Wednesday said it signed a non-binding memorandum of understanding (MoU) with the Rajasthan government. "The MoU is an in-principle arrangement between the parties with the objective to provide financial assistance for housing and urban infrastructure projects in the state of Rajasthan to the extent of Rs 1,00,000 crore (for next 5 years), subject to mutually agreed terms and conditions," it stated in an exchange filing.

"The MoU was executed by Sanjay Kulshrestha, CMD, HUDCO and Debasish Prusty, IAS, Secretary to Government, Finance (Budget) Department, Rajasthan in the presence of Bhajan Lal Sharma, Chief Minister, Rajasthan," the state-owned firm also mentioned.

On the stock-specific front, HUDCO shares climbed 5.45 per cent to hit a day high of Rs 323.90. The scrip was last seen trading 1.53 per cent up at Rs 311.85. At this price, the multibagger counter has gained 141.46 per cent on a year-to-date (YTD) basis.

The stock saw high trading volume on BSE today as around 33.69 lakh shares changed hands at the time of writing this story. The figure was higher than the two-week average volume of 27.11 lakh shares. Turnover on the counter came at Rs 104.81 crore, commanding a market capitalisation (m-cap) of Rs 62,299.13 crore.

On the technical setup, the counter traded lower than the 5-day, 10-day and 20-day simple moving averages (SMAs) but higher than the 30-day, 50-, 100-, 150-day and 200-day SMAs.

The counter's 14-day relative strength index (RSI) came at 53.20. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 29.05 against a price-to-book (P/B) value of 3.91. Earnings per share (EPS) stood at 10.57 with a return on equity of 13.46.

As of June 2024, promoters held a 75 per cent stake in the PSU firm.