HUDCO Q4 profit jumps, but shares dip amid fundraising buzz

Housing and Urban Development Corporation (HUDCO) reported a 4 per cent year-on-year rise in net profit for Q4 FY25, reaching Rs 727.74 crore. Revenue from operations surged 37.8 per cent to Rs 2,844.99 crore, and net interest income grew 26 per cent to Rs 962 crore. Despite these strong financials, HUDCO's share price fell nearly 2 per cent on May 7, currently trading at Rs 214 on the BSE. The decline followed the company's announcement to raise Rs 2,190 crore through non-convertible debentures (NCDs) and a final dividend of Rs 1.05 per share. HUDCO share price: Why the dip? The market's reaction appears to stem from concerns over potential dilution and increased debt. The planned NCD issuance, offering a 6.9 per cent annual interest rate over five years, aims to fund HUDCO's growth initiatives. While this move supports expansion, it also raises questions about the company's leverage and future earnings. Additionally, the stock has experienced significant volatility, with a 52-week high of Rs 354 and a low of Rs 159. The recent dip may reflect profit-taking by investors amid broader market uncertainties. Key financial metrics Met