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HUDCO: The Government-Backed Infra Lender Quietly Outperforming — But Is the Valuation Ahead of Fundamentals?
HUDCO is a Mini-Ratna CPSE with ~81.8% government ownership, operating at the intersection of housing finance and urban infrastructure lending. The company has delivered strong financial performance with PAT growing at a 25% CAGR over FY22-FY26E and ROE expanding to ~16%, driven by improving asset quality and operating leverage. However, at 15-16x P/E, the stock has already re-rated significantly from its 2022 lows, raising questions about whether the premium valuation is fully justified.
31 May 2026Company Overview