HUDCO, Can Fin Homes slip up to 11%; here's what's worrying investors

Housing & Urban Development Corporation (HUDCO) shares slumped 11.35 per cent on Monday, logging an intraday low at Rs 192.5 per share on BSE. The stock fell after Budget 2025 allocated Rs 1.59 trillion to housing and urban development over FY25RE of Rs 1.06 trillion which was a downward revision in FY25RE from FY25BE of Rs 1.25 trillion.  RE is revised estimates and BE is Budget estimates. When the government presents its annual Budget, it includes detailed projections of revenue and expenditure for the upcoming financial year. These projections are known as Budget Estimates (BE). As the year progresses, actual revenue and spending may deviate from these projections due to unforeseen circumstances or new priorities. The updated numbers, reflecting these changes, are called Revised Estimates (RE).

 

Around 3:06 PM, HUDCO share price was down 8.68 per cent at Rs 198.3 per share on BSE. In comparison, the BSE Sensex was down 0.46 per cent at 77,148.59. The market capitalisation of the company stood at Rs 39,697.68 crore. The 52-week high of the stock was at Rs 353.95 per share and the 52-week low was at Rs 152.65 per share. Among other affordable housing stocks, Can Fin Homes share also slipped 3.3 per cent intraday to Rs 638.5 per share. 

 

As per JM Financial, in the Union Budget for FY26, the aggregate capital expenditure of centre increased by 10 per cent to Rs 11.2 trillion over FY25 RE of Rs 10.18 trillion. However, it remained flat over FY25 BE of Rs 11.1 trillion.

 

"The Budget allocated Rs 1.59 trillion to housing and urban development over FY25RE of Rs 1.06 trillion which was a downward revision in FY25RE from FY25BE of Rs 1.25 trillion," JM Financial said.

 

The capex allocation also came in lower-than-expected. “Budget 2025 seems to have addressed the issue of consumption slowdown by providing a boost to the middle class in the form of lower tax. However, capex may not be as budgeted and could be a worry for growth. Further, New tax code needs to be seen for any changes in capital gain tax,” said Vikram Kasat, head of advisory at PL Capital.

 

Besides, capital goods stocks were also hit due to lower-than-expected capex in Budget 2025, BSE Capital Goods index slipped 4.45 per cent.  On the index, among others, Bharat Dynamics, and Power India were down over 8 per cent, Siemens, Thermax, ABB India, HAL, Titagarh, Inox Winds, and Rail Vikas Nigam (RVNL) slipped over 6 per cent. 

 

In the past one year, HUDCO shares have gained 0.73 per cent against Sensex's rise of 8 per cent.