Hampton Sky (526407)

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Positive book value of ₹6.32 provides an asset baseline, though the price is far above it.
• ROCE of 6.07% is positive, indicating some return from capital employed before financing costs.
• The company is listed on NSE/BSE, offering liquidity and price transparency.
• Trading at the top of its 52-week range suggests current market sentiment is favourable, but this is not a fundamental edge.

Concerns

• Earnings are negative; the latest quarter shows -₹1 Cr sales and -₹2 Cr net profit, making the P/E meaningless.
• Sales growth of -107.95% and profit growth of -122.33% indicate severe business deterioration.
• At ₹30.04 versus book value of ₹6.32, the P/B of 4.75 leaves no margin of safety.
• Piotroski F-Score of 3/9, FairStock Score of 0/100, no dividend, and undisclosed promoter holding and debt/equity data signal high risk and weak transparency.

AI Analysis

First, I look for earning power. Hampton Sky has none today. The P/E is shown as zero because earnings are negative; the latest quarter delivered -₹1 Cr of sales and -₹2 Cr of net profit. Sales growth is -107.95%, and profit growth is -122.33%. In Graham's framework, this fails the earnings test. Second, I look at financial health. ROE is -10.99%, so equity holders are losing money. ROCE is only 6.07%, which may cover operating assets but clearly does not produce a bottom-line return. The Piotroski F-Score is 3 out of 9, suggesting weak fundamentals. FairStock marks it 0/100 - risky. Third, valuation. At ₹30.04, the stock is at the top of its 52-week range and trades at 4.75 times book value of ₹6.32. There is no dividend yield. Paying a premium to book for a business that is destroying shareholder value is the opposite of a margin of safety. Promoter holding and debt/equity are not disclosed, so I cannot judge alignment or leverage risk. In real estate, revenue can be lumpy, but negative sales and negative profits over successive figures point to distress, not a healthy cyclical trough. A true Graham investor would require stable earnings, a strong balance sheet, and a price well below intrinsic value. None of those conditions are visible. I would place this in the too-hard pile and wait for evidence of recovery, or a far lower price.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer