Housing and Urban Development Corporation (HUDCO) shares tumbled over 11% to ₹192.5 on the BSE during Monday’s trading session. The decline followed the government’s announcement of a ₹19,794 crore allocation for the Pradhan Mantri Awas Yojana (PMAY)-Urban in the Union Budget for 2025-26, marking a 34.4% reduction—or ₹10,377 crore—compared to the ₹30,171 crore allocated in the 2024-25 budget.
The recent allocation falls short of the actual expenditure of ₹21,684 crore in 2023-24. However, it represents a 44.8 per cent increase compared to the revised estimate of ₹13,670 crore for 2024-25.
In the Budget 2025, the Government of India (GoI) has allocated ₹19,794 crore for the Pradhan Mantri Awas Yojana (PMAY)-Urban. This represents a ₹10,377 crore or 34.4 per cent cut, against ₹30,171 crore allocated in the Budget 25.
As of 12:50 pm, the stock was down 9.1 per cent, trading at ₹197.3 on the BSE. Since the beginning of the year, HUDCO shares have declined by 17 per cent and have fallen 35.5 per cent in the last six months. However, over the past three years, the stock has surged by 375 per cent.
NBCC’s shares, a civil construction company, declined by over 5 per cent, trading at ₹90.5. While the stock has dropped more than 25 per cent in the last six months, it has surged nearly 300% over the past two years.
HUDCO Q3 earnings highlights
HUDCO posted a net profit of ₹735 crore for Q3 FY25, marking a 41.6 per cent year-on-year growth from ₹519 crore in the corresponding quarter of the previous year.
The lender’s Net Interest Income (NII), or core earnings, surged by 47% to ₹983 crore, compared to ₹667 crore in the same period last year.
On the charts, HUDCO shares have not yet reached “oversold” levels, as indicated by a Relative Strength Index (RSI) of 36. An RSI value below 30 signifies that a stock is considered to be in “oversold” territory.
India’s Mutual Funds have increased their investment in HUDCO during the October to December period, despite the stock’s decline from its peak. Currently, Mutual Funds hold a 1.83 per cent stake in HUDCO, up from 0.77 per cent in the previous quarter ending in September.
