Housing and Urban Development Corporation (HUDCO) shares fell more than 6% in early trade on Friday as investors indulged in profit booking following the stock’s sharp rally after its March quarter results.
The stock was trading at ₹208.75, down 6.54%, after witnessing strong gains in the previous session following its Q4 earnings announcement.
HUDCO had rallied sharply on Thursday after reporting healthy growth in net profit and net interest income (NII), along with stable asset quality and a dividend announcement. The company’s strong quarterly performance had triggered renewed buying interest in the PSU financing stock.
However, after the sharp upmove, traders appeared to lock in gains on Friday, leading to selling pressure in the counter.
The recent rally was largely driven by optimism around HUDCO’s robust lending growth, improving earnings profile and continued focus on infrastructure and housing finance projects. The company has also benefited from strong investor interest in PSU and infrastructure-linked stocks over the past few months.
Market participants said the current decline appears more linked to short-term profit booking rather than any negative fundamental trigger. Despite Friday’s fall, the stock remains significantly above its recent lows and has delivered strong returns over the past year.
HUDCO, a government-owned enterprise under the Ministry of Housing and Urban Affairs, primarily finances housing and urban infrastructure projects across India. The company has increasingly gained investor attention due to rising infrastructure spending and urban development initiatives.
Investors will now watch for management commentary on loan growth, asset quality and future disbursement trends in the coming quarters.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice.