Investment Overview
Oravel Stays Limited (Oyo) is an unlisted company operating in the Consumer Discretionary sector (Hospitality / Travel-Tech). Oravel Stays Limited (OYO) operates a global hospitality platform that standardizes and markets small hotels and homes using technology, playbooks and brand standards. Founded in 2013, OYO provides revenue management, distribution, guest app and owner services across multiple countries. The company …
Strengths
- Steady Gains Growth: EBITDA steadily increasing, expected to reach $135 million in FY25, driven by cost-cutting and better management.
- Growing Travel Demand: Increased hotel occupancy rates (70% in FY24) benefiting from the bounce-back of the travel industry.
- Cost Efficiency: Effective reduction in staff and marketing expenses boosting profitability.
Key Risks
- Borrowings Challenges: There's potential for Lack of secured funding for refinancing in the next 12-18 months to lead to monetary strain.
- Hazard of Losing Industry Share: There's prospects for Competition and failure to meet expansion targets to consequence market foothold and profitability.
Valuation View
The current unlisted market price is ₹24.25 per share with a market capitalisation of approximately ₹34332 crore. The company is currently unlisted and investors should factor in illiquidity risk and longer holding horizons. Investors are advised to review the full financial data and consult an advisor before investing.