The Housing and Urban Development Corporation (HUDCO) has been registered as a Non-Banking Financial Company – Infrastructure Finance Company (NBFC-IFC) by the Reserve Bank of India (RBI).

What Happened: As per a corporate disclosure made on Thursday, HUDCO has received the certificate of registration from the RBI. 

The registration as an NBFC-IFC allows HUDCO higher exposure limits for financing various infrastructure sectors in addition to housing. This registration is a significant step for HUDCO as it expands its financial capabilities and increases its potential impact on India’s infrastructure and housing sectors.

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Earlier this month, HUDCO signed a Memorandum of Understanding (MoU) with Yamuna Expressway Industrial Development Authority (YEIDA). The MoU marked a partnership to offer long-term financial assistance in the form of loans for various projects on both sides of the Yamuna Expressway undertaken by YEIDA.

Since the start of the year, HUDCO’s share price has seen a significant surge, with an increase of over 120% but analysts at Nirmal Bang think the stock still has some steam left. 

Looking ahead, the brokerage expects HUDCO’s earnings to grow at an annual growth rate of 22.7% over FY24-FY26, supported by a 23.2% growth in assets under management (AUM), a 20 basis point improvement in net interest margin, stable operating expenses, and near-zero credit costs.

Price Action: HUDCO shares ended 1.67% higher at ₹294.80 on Thursday.

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