The share price of HUDCO fell 12% to an intra-day low of Rs 191.21 after the Union Budget 2025-26 disappointed investors due to a lack of specific policies for affordable housing and reduced capital expenditure.
The shares of HUDCO declined 5.4% during the special budget session as well. The capital expenditure has been reduced to Rs 10.8 lakh crore for FY26 from Rs 11.11 lakh crore in FY25.
“While the budget did not directly address affordable housing, it did introduce measures that could indirectly boost real estate demand by increasing disposable income for many households by enhancing tax rebates and eliminating income tax for individuals earning up to Rs 12 lakhs. Despite this potential indirect benefit, the market reacted negatively, with a 14.5% rise in open interest signalling a short build-up as traders positioned themselves for further price declines,” said Axis Securities.
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A week back, the company posted a net profit of Rs 735 crore for the third quarter of FY25, a jump of 41.6% year-on-year. It reported an increase of 37.14% YoY in revenue from operations during the quarter, with revenue at Rs 2,760.23 crore. Also, it announced to distribute some part of the profit with its stakeholders, announcing an interim dividend of Rs 2.05 per equity share.
HUDCO Vs Nifty 50
The share price of HUDCO has fallen almost 14% in the past three trading sessions. The stock has erased around 19% of investors’ wealth in the last one month and 32% in the past six months. It has fallen almost a per cent in a year.
To compare, the benchmark index, Nifty 50 has risen over 1.8% in the last five days. The index has fallen 2.85% in the last one month and 3% in the past six months. It has risen more than 7% in the previous one year.
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