The 60-second version of Hampton Sky Realty Limited — what it does, how it earns, and who it competes with, before any of the numbers below.
What does this company do?
Hampton Sky Realty Limited engages in the real estate business, including the development of commercial, industrial, housing, retail, hospitality, and medical projects. It is also involved in the textile and investment businesses in India.
IndustryCapital Markets
SectorFinancial Services
Employees24
Annual revenue₹59 Cr
How does it make money?
Turns over ₹59 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹31 left at the operating level before interest, tax and depreciation. Each of its 24 employees supports ₹2.47 Cr of revenue a year, the signature of a capital- or asset-led business.
Revenue / employee₹2.47 Cr
Who are its competitors?
The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.
What is its competitive advantage?Not assessable from these ratios
For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.
Peer median ROE13.7%
What has been driving growth?
Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved -69% while net margin moved -25% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.
Revenue effect-69%
Margin effect-25%
DalalBaazaar Score
42/ 100
Moderate
Weighted across six categories. Every point is explained below.
✗ Revenue has contracted at 32.5% a year
✗ Profit has declined at 38.6% a year
✗ Latest-year revenue growth of -97.0% is below the longer-term trend — momentum is fading
✗ Profit fell 53.3% in the latest year
Quality vs. Valuation
Company Quality
44/ 100
Weak
How good the business is, ignoring the share price entirely.
vs
Valuation
31/ 100
Expensive
What you are being asked to pay, ignoring how good the business is.
Weak on business quality and not cheap enough to compensate.
vs. its own history
Not enough price and earnings history
vs. sector peers
Not enough peers with a usable P/E
vs. generic bands
N/A
No P/E — the company is lossmaking
EV/EBITDA
15.6x
PEG
—
What's Good / What's Bad
🟢 What's Going Well1
Margins are improving
EBITDA margin is up from 21.9% to 31.4% over 3 years.
🔴 What Needs Attention4
Return on equity is falling
ROE has dropped from 21.5% to 3.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 24.9% to 7.4% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 68% against revenue growth of -69% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 130% against revenue growth of -69% — stock may not be moving.
Red Flags
2 items require attention · 2 watch
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 7.4x to 4.7x.
🟡Profit is decliningFinancial
Net profit is down 77% over 3 years.
Investment Thesis
🟢 Bull CaseWhat could make this work?
Margin expansion has further to run
EBITDA margin has risen from 21.9% to 31.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
🔴 Bear CaseWhat could go wrong?
Returns on shareholder capital are falling
ROE has dropped from 21.5% to 3.8%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today
1EBITDA margin holds above 29%✓ 31.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 3.8%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Interest cover stays above 4x✓ 4.7x
How much operating profit can fall before interest stops being comfortably covered.
Investment Checklist
4 / 10 checks passed
✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
Price history
Quick Metrics
1 good · 3 neutral · 7 weak
Market Cap
₹215 Cr
Micro Cap
Smaller company — thin liquidity and deep drawdowns are normal here
P/E (Trailing)
Not meaningful
Loss-making
Earnings are negative, so a P/E multiple can't be read here
P/B Ratio
1.59x
Fair
Moderate premium to the company's book value
EPS (TTM)
₹-0.63
Loss-making
Negative earnings per share — the business is losing money
ROE
3.8%
Weak
Weak capital efficiency
ROCE
7.4%
Weak
Low return on total capital employed
Debt/Equity
0.28x
Low
Conservative leverage
Revenue Growth (YoY)
-97.0%
Shrinking
Sales are contracting
Profit Growth (YoY)
-53.3%
Falling
Profits are shrinking
Dividend Yield
None
None
No dividend yield reported — usually means no payout, but verify if one was recently initiated
Free Cash Flow
-₹35 Cr
Cash burning
Spending more cash than the operations bring in
More Metrics
Operating Margin
-342.9%
Weak
Thin margins leave little room for error
Net Margin
-108.2%
Weak
Very little revenue reaches the bottom line
Current Ratio
2.99
Comfortable
Healthy short-term liquidity
Beta (vs Nifty)
0.84
Market-like
Moves roughly in line with the market
52W Range Position
31%
Mid-range
Mid-range
Technical Snapshot
RSI (14)
39.9
Neutral momentum
Financial Trend (4-Year)
Metric
FY22
FY23
FY24
FY25
3Y CAGR
Revenue
₹193 Cr
₹74 Cr
₹237 Cr
₹59 Cr
-32.5%
EBITDA
₹42 Cr
₹7 Cr
₹34 Cr
₹19 Cr
-23.9%
EBITDA Margin
21.9%
8.9%
14.2%
31.4%
—
PAT (Net Profit)
₹24 Cr
-₹1 Cr
₹12 Cr
₹6 Cr
-38.6%
EPS
₹13.08
₹-0.02
₹0.43
₹0.2
-75.2%
ROE
21.5%
-0.5%
8.4%
3.8%
—
ROCE
24.9%
1.5%
15.7%
7.4%
—
Total Debt
₹11 Cr
₹10 Cr
₹59 Cr
₹78 Cr
+90.3%
Free Cash Flow
-₹21 Cr
-₹15 Cr
-₹41 Cr
-₹35 Cr
—
🔴 Revenue has shrunk at 32.5% a year over 3 years.
🔴 EBITDA has shrunk at 23.9% a year over 3 years.
🟢 EBITDA Margin has risen from 21.9% to 31.4% over 3 years (+9.5 pts).
🔴 PAT (Net Profit) has shrunk at 38.6% a year over 3 years.
🔴 EPS has shrunk at 75.2% a year over 3 years.
🔴 ROE has fallen from 21.5% to 3.8% over 3 years (-17.8 pts).
🔴 ROCE has fallen from 24.9% to 7.4% over 3 years (-17.5 pts).
🔴 Total Debt has grown at 90.3% a year over 3 years.
Revenue growth is negative (-97.0%) on the latest reported period — check if this is one-off or a trend.
This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation.
