Buy Hampton Sky Realty; target of Rs 38: Khambatta Securities

Khambatta Securities is bullish on Hampton Sky Realty has recommended buy rating on the stock with a target price of Rs 38 in its research report dated May 19, 2024.

Broker Research

May 22, 2024 / 14:50 IST

Buy

26 Aug, 2025 12:21

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Khambatta Securities' research report on Hampton Sky Realty

Incorporated in 1987, Hampton Sky Realty Limited (Hampton), formerly known as Ritesh Properties and Industries Limited (RPIL), is a Ludhianaheadquartered company, primarily operating in the real estate sector. At the topmost level, Hampton is led by its promoters. Mr. Sanjeev Arora, promoter and Managing Director, has been associated with the company for almost 20 years. With more than 40 years’ experience in business administration and the real estate sector, he is also Rajya Sabha MP. CEO Mr. Kavya Arora has over 15 years’ leadership experience at Femmella Fashions India Limited whilst he has been associated with Hampton for more than a decade. The Indian real estate is poised for robust growth in the medium-to-long term. According to a report by the international property consultant Knight Frank and the National Real Estate Development Council, India's real estate market is projected to grow to US$ 5.8 tn by 2047, contributing 15.5% of GDP, up from 7.3% currently. Key drivers for the sector are rising disposable income, urbanisation, a large working-age population, and overall strong economic growth.

Outlook

The Hampton stock currently trades at an attractive FY26E forward PEG ratio of 0.9x basis an expected medium-term average earnings growth rate of 37%. Assigning a target PE multiple of 40x FY26E EPS, we value the Hampton stock at Rs 38 at a reasonable PEG ratio of 1.1x, informing a BUY rating with a 22% upside potential.

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