Housing & Urban Development Corporation Ltd.

“HUDCO is structurally sound as a government-franchise lender channeling capital into India's urban housing pipeline, but earns utility-grade returns (ROE ~14-15%, NIM ~2.5%) that justify a P/B of roughly 1.3-1.5x — well below the current 2.34x. With management entirely misaligned with minority shareholders, tail risk from state-level fiscal stress and NPA normalization, and a 10-year return scenario that barely matches index returns, there is no compelling reason to own this over better-run policy financiers like PFC or REC at lower relative multiples.”