PSU stock falls 11% after Govt cuts budget of PM Awas Yojana-Urban by ₹10,377 CrPSU stock falls 11% after Govt cuts budget of PM Awas Yojana-Urban by ₹10,377 Cr

Introduction:

Leading PSU in the housing sector saw its shares decline after the government allocated ₹19,794 crore for Pradhan Mantri Awas Yojana (PMAY)-Urban, a 34.4% or Rs 10,377 crore reduction from the previous year’s budget. The new allocation reflects a 44.8% increase from revised estimates.

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Share price movement of HUDCO:

On February 3, 2025, Housing & Urban Development Corporation Ltd opened at ₹214.80, down 1.09% from its previous close of ₹217.15. The stock reached a high of ₹214.80 and a low of ₹192.50. By 4:00 PM, it traded at ₹198.15, an 8.75% decrease, with a market cap of ₹39,667.65 crore.

HUDCO Shares Fall After PMAY Budget Cut:

Housing and Urban Development Corporation (HUDCO) shares declined after the government allocated ₹19,794 crore for Pradhan Mantri Awas Yojana (PMAY)-Urban in the Union Budget 2025-26, marking a 34.4% or Rs 10,377 crore reduction from ₹30,171 crore allocated in Budget 2024-25.

Despite the cut, the latest allocation is 44.8% higher than the revised estimate of ₹13,670 crore for 2024-25 but remains lower than the actual expenditure of ₹21,684 crore in 2023-24, raising concerns about housing sector funding.

Recent news on HUDCO:

As of January 22, 2025, Housing and Urban Development Corporation (HUDCO) reported a 41.6% YoY increase in net profit for Q3 FY25, reaching ₹735 crore. Revenue rose 37% YoY to ₹2,760 crore, reflecting strong financial performance.

Stock performance of HUDCO for Period of 1 week, 6 months and 1 year:

Housing and Urban Development Corporation (HUDCO) has experienced a 3.66% increase in stock price over the past week. However, it has seen a 27.2% decline over the last six months, while there has been a 4.52% growth over the past year, indicating mixed performance.

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Shareholding pattern of HUDCO:

All values in %	Dec 2024	Sep 2024	Jun 2024
Promoter	75%	75%	75%
FII	2.10%	2.30%	2.70%
DII	9.70%	9.10%	11.70%
Public	13.20%	13.60%	10.70%

About HUDCO:

Housing and Urban Development Corporation (NSE: HUDCO) is a public sector enterprise under the Ministry of Housing and Urban Affairs, focusing on financing housing and urban infrastructure projects in India. It provides loans for affordable housing and urban development initiatives.

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.