Highlights
- HUDCO shares declined more than 7% despite reporting Q4 FY26 earnings growth.
- Profit booking emerged after the stock rallied sharply in recent weeks.
- Weak near-term momentum pushed the stock lower from recent highs above INR 225.
Overview
Housing & Urban Development Corporation Limited (NSE: HUDCO) witnessed sharp selling pressure on May 15, with the stock falling over 7% to around INR 207.37 during intraday trade. The decline came after the company announced its audited Q4 FY26 financial results.
Despite reporting higher profitability, the stock reacted negatively as investors appeared cautious on valuations following the recent rally in PSU and housing finance counters. The stock also emerged among the major losers in the broader market session.
Fundamental View
HUDCO reported consolidated total income of INR 3,62,507 lakh for the quarter ended March 2026. Profit before tax stood at INR 62,101 lakh, while net profit came at INR 1,98,131 lakh. Earnings per share (EPS) for the quarter stood at INR 9.90.
The company operates in the housing and urban infrastructure financing segment, where business growth remains linked to government-led infrastructure spending, interest rate trends, and project execution activity. Investors may continue monitoring loan growth and asset quality trends in upcoming quarters.
Technical View
HUDCO shares witnessed a sharp breakdown after failing to sustain levels above INR 225 during the session. The stock, however, remains above its 50-day SMA near INR 191.64, indicating that the broader medium-term structure is still intact despite the latest correction.
The 14-day RSI dropped near 48 after recently moving into overbought territory, reflecting cooling momentum and increased volatility. Price action suggests traders may remain cautious in the near term.
Key Technical Levels
- Immediate Support: INR 190–175
- Immediate Resistance: INR 225–235
Risk Factors
- Profit booking after the recent rally may continue.
- Valuation concerns could pressure short-term sentiment.
- Rising interest rates may affect housing finance demand.
- Broader PSU sector volatility may impact stock movement.
Summary
HUDCO shares corrected sharply after the latest Q4 FY26 earnings announcement, even as the company reported healthy profit growth. The decline appears linked to profit booking and cautious sentiment after the stock’s recent rally in the PSU segment. Technically, the stock remains above key medium-term support levels, though near-term momentum has weakened following the sharp intraday correction.
FAQs
- Why did HUDCO shares fall despite strong earnings?
Investors appeared cautious on valuations and booked profits after the stock’s recent sharp rally. - What are the key support levels for HUDCO stock?
Immediate support for HUDCO shares is placed near INR 190 and INR 175. - What resistance levels should investors watch in HUDCO?
The stock may face resistance in the INR 225 to INR 235 range.