HUDCO drops after repayment default

Housing and Urban Development Corporation (HUDCO) fell 5.94% to Rs 38 after the company said that two borrowing agencies had defaulted in repayment of their dues.

The two borrowing agencies of the company have defaulted in repayment of their dues with a defaulted amount of Rs 87.46 crore against the principal outstanding of Rs 869.40 crore as on date and have been classified as non-performing assets (NPAs) with an impact of 1.14% on gross NPAs, HUDCO announced after trading hours yesterday, 4 December 2019.

Meanwhile, the S&P BSE Sensex was up 59 points or 0.14% to 40,909.32.

In the past one month, shares of HUDCO slipped 4.52%. On the technical front, the stock's RSI (relative strength index) stood at 39.093. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was currently trading below its 50-day moving average (DMA) placed at Rs 38.08, as well as below its 200 DMA placed at Rs 39.33.

On a consolidated basis, HUDCO's net profit soared 157.3% to Rs 725.78 crore on 66.6% surge in total income to Rs 2,053.79 crore in Q2 September 2019 over Q2 September 2018.

HUDCO provides long term finance for construction of houses for residential purposes or finance or undertakes housing and urban development programs in the country.

As of 30 September 2019, the Government of India held 89.81% stake in the company.

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