3,345% Return In 5 Yrs: Penny Stock Below Rs 50 Has 63% Potential Upside; Buy?

A small-cap company in the real estate industry is Hampton Sky Realty Ltd. Originally named Ritesh Properties and Industries Ltd (RPIL) and founded in 1987, Hampton Sky Realty Ltd is a well-known corporation having ventures in the real estate and fashion industries. Additionally, the company exports mobile phones to nations in the Middle East. Mr. Sanjeev Arora, the company's chairman and managing director, is in charge of Hampton Sky Realty, which has headquarters in Ludhiana and Delhi.

Hampton Sky Realty Share Price Target

According to the brokerage firm Profitmart, "On a rough cut basis, in FY24E, Topline is expected to touch Rs 100 crs, followed by Rs 200 crs in FY25E & Rs 320 crs in FY26. On the bottom line level we expect the company to record a PAT of Rs 13.28 crs in FY24E which is expected to bounce back to Rs 27 crs in FY25 & Rs 43 crs in FY26."

"We continue to be positive based on the company's future growth outlook in the Real Estate segment & believe that Hampton Sky Realty looks attractive from a long term perspective considering the huge head room for future growth in the Real Estate space, the diversity of its customer base and strong domain knowledge enjoyed by it in the business. Hence we believe that the Hampton Sky Realty should buy at CMP at Rs 41 and target price would be around Rs 65-70 plus over the next 18 months," said the brokerage in a note.

Considering the current share price of Hampton Sky Realty at Rs 43, the target price set indicates a potential upside of 63%.

Hampton Sky Realty Financials

The firm recorded a rise in revenue from operations, hitting Rs 59.02 crore during the quarter ended December 31, 2023. Earning Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA, jumped by 81% to Rs 7.68 crore in Q3FY24 from Rs 4.24 crore in Q3FY23. The company's Profit After Tax (PAT) was down 17% from 3.67 per cent to Rs 3.05 crore, while its Profit Before Tax (PBT) climbed by 58% to Rs 6.4 crore.

Hampton Sky Realty Share Price History

On Tuesday, the shares of Hampton Sky Realty were trading at Rs 43,75. The scrip reached a 52-week-high of Rs 59.00 on (17/11/2023) and a 52-week-low of Rs 33.00 on (31/03/2023). With a multibagger return of 3,345% over the previous five years and 1,423% over the last three, the stock has produced impressive returns. The stock has dropped 4.92% in a year and 6.55% on a year-to-date basis.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.