Realty stock under Rs. 50 specializing in the construction and development of commercial and residential properties jumped upto 19 percent in the day’s trade upon signing the Licensing and Lease Agreement with Tata Group stock.
Price Action
With a market capitalization of Rs. 857 Crores, the shares of Hampton Sky Realty Limited were trading at Rs. 31.26 per equity share, up 12 percent from its previous day’s close price of Rs. 27.89.
What Happened
Hampton Sky Realty Limited has announced that it has entered into a Hotel Management Agreement (HMA) and a Technical Services Agreement with Indian Hotels Company Limited and an agreement to Lease with IHCL’s subsidiary Roots Corporation Limited (RCL), for two hotel properties in Ludhiana, Punjab.
Following this Hampton has agreed to construct a property, either directly or through a special purpose vehicle, at a land owned by Hampton at Mangli Nichhi, Ludhiana Chandigarh Highway, Punjab and it will be operated by IHCL under its brand Gateway in terms of the Agreements
The proposed property will house a fully customized and equipped hotel offering world-class facilities including an all-day dining restaurant, specialty restaurant, bar, banquet facilities, meeting rooms, swimming pool, gym, and health club.
Coming to the lease agreement it has agreed to construct and develop a separate property on Hampton’s land and upon completion of construction, the property will be granted on lease to Roots Corporation Limited a subsidiary of IHCL by way of a separate lease deed, for the latter’s use as a hotel under “Ginger” brand.
The proposed Ginger Hotel will offer approximately 100 guest rooms and will feature a variety of amenities, including an all-day dining restaurant and bar, meeting room, fitness center and swimming pool.
About the Company
Hampton Sky Realty Ltd. is a prominent real estate development company specializing in commercial and residential properties. With a portfolio of high-quality developments across India, it has a good track of creating exceptional properties that meet the evolving needs of modern businesses and leisure travelers.
Financials & Ratios
Its revenue from operations declined by 92 percent from Rs. 61.79 Crores in Q2FY24 to Rs. 5.16 Crores in Q2FY25, accompanied by profits of Rs. 2.64 Crores to Rs. 4.9 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 10.6 percent, and a return on capital employed (ROCE) of 15.7 percent. It has reported a debt-to-equity ratio of 0.47.
Written by: Bharath K.S
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