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HUDCO; A bargain Buy?


DATE           13/05/2020                                  

HUDCO        Last closed   21.45  CMP   23.9   

ROE                       11.29%                             

ROCE                     8.43%                    

DEBT/EQUITY        5.07                       

EPS                        7.52                       

BOOK VALUE         59.84                     

EV/EBITDA             9.76                       

P/E                         2.86                       

P/B                         0.36                       

sales growth yoy     32.03%                             

Sales growth 5Y      13.39%                             

This company is primarily engaged in the business of financing Housing and urban development activities in the country. Last closed at 21.45 which is only 2.86 which makes it a bargain bet. Company's debt equity ratio stands at 5.07 which can be considered good if compared to its peers. Currently is trading around 10 times it's enterprise value with attractive sales growth figures. at the time of IPO company share was offered at 15 times of its earning and then stock headed a high of 102.30 after IPO.                                                   

Recommendation: one can start accumulation in this stock from 24 and add more in case of decline. Currently company is available just at 2.86 times of its earnings. In coming days when things start getting better company has potential to revert back to its median PE that stands near 8.8 thus stock has the potential to hit 60-65 rupees in a time frame of 1-3 years.                             

While investing keep in mind…                                     

1       Never put all your eggs in single basket                            

2       You can be right dead right; but you must survive        

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