The Byke Hospitality Ltd. share price target

Total revenue for Q4FY18 grew by 11.9% yoy at Rs. 55.9 cr compared to Rs. 50.0 cr in Q4FY17, driven by growth in both hotel and chartering segment by 10.4% and 18.7% yoy, respectively. Its hotel segment reported revenue of Rs. 45.3 cr as against Rs. 40.1 cr in Q4FY17, while chartering segment revenue was at Rs.10.6 cr compared to Rs. 8.9 cr in corresponding quarter last year. Further, in the hotel segment, F&B; division showed robust growth of 17.2% yoy with revenue of Rs. 25.2 cr, whereas room division growth was at 3% with revenue of Rs. 20.1 cr. On operational front, profit grew by 20.8% to Rs. 21.9 cr compared to Rs. 18.9 cr on yoy basis due to decrease in other expense by 3.5% EBITDA margin stood at 39.3% in Q4FY18 compared to 36.4% in Q4FY17, improved by 289 bps yoy. Net profit grew by 32.1% yoy to Rs. 11.8 cr as against Rs. 9.0 cr in same quarter last year. Net profit margin came at 21.2% compared to...

The Byke Hospitality reported decent set of numbers for Q4FY18, with net revenue growth of 11.9% yoy. Further its EBITDA and PAT margins improved by 289 bps yoy and 324 bps yoy, respectively.

We re-initiate coverage on Byke Hospitality (Byke) with a BUY recommendation and a Price Objective of ?351 (target Adj P/E multiple of 20x) implying an upside potential of ~109%. At the CMP of ?168, the stock is trading at a PE of 9.6x FY21E EPS and this compares favorably with peers of a similar size.

The Byke Hospitality reported a subdued performance as Net profit fell 1.9% on YoY basis. Net revenue came at Rs. 37.1 cr against Rs. 61.9 cr in Q1FY17 due to change in accounting method for room charting segment.

The Byke Hospitality reported in-line profit growth; however Net revenue was below our expectations. Total income and Net profit increased by 11.4% and 21.2% respectively on YoY basis. Hotel segment (owned and leased properties) reported 8.2% jump in revenue, whereas Room charting segment reported growth of 15.6%.

The Byke Hospitality is well placed to cater to the swelling domestic tourism and hospitality industry with vast range of offerings, which includes hotel rooms, restaurants and bars, conferences, weddings, parties, MICE (meetings, incentives, conferencing, and exhibitions).

O&L; (Owned & Leased) segment witnessed 14. 2% growth during Q3FY1 7 to Rs. 40.1 crs from Rs. 35.1 crs in Q3FY16. The new operational room capacity added Y TD is 134 rooms, increasing the total capacity to 757 rooms in Q3FY17 from 623 in Q3FY16. Chartering segment registered a decent growth of 10. 9% to Rs.38.6 crs in Q3FY17 compared to Rs.34.8 crs in Q3FY16 on account of the drop in t he A RR by -5.8% even after registering a growth of 14.9% in room nights sold during the quarter compared to the same quarter last year. Robust expansion plan under Owned & Lease (O&L;) model ...

The Byke Hospitality maintained good performance in 3QFY17 with a 12.5% growth in revenue at Rs.787 mn vs Rs.699.7 mn YoY despite demonetization. The company reported ~35.4 bps expansion in EBITDA margin to 14.2% YoY in this quarter. PAT increased by 17.3% to Rs.106mn from Rs.90.4mn YoY. The growth in revenue was supported by growth of ~14% in F&B; (Foods & Beverages) segment, increasing no. of hotels under asset light model, better utilization of capital through...

Moderate Topline Growth with Sustainable Margins: Decent growth witnessed in O&L segment during the Quarter: O&L (Owned & Leased) segment witnessed 14.2% growth during Q3FY17 to Rs. 401 mn fromRs. 351 mn in Q3FY16. The new operational room capacity added YTD is 134 rooms, increasing the total capacity to 757 rooms in Q3FY17 from 623 in Q3FY16.

Strong performance continued during H1FY17: The Byke Hospitality Ltd continues to sustain its growth during H1FY17 registering 23.5% increment on the topline with Rs. 1155 Mn compared to Rs. 935 Mn during H1FY16. EBITDA during H1FY17 stood at Rs. 250 mn compared to Rs. 199 mn registering a growth of 25.8%, EBITDA Margins for H1FY17 stood at 21.7% an increase of 41 bps (basis points) over H1FY16.

One of India's fastest growing hospitality brands An asset-light business model, adequately capitalized balance sheet, robust cash flows, exciting growth prospects & capable management inspire confidence in its prospects over the next two years. As on September 2016, company has 797 rooms with 11 properties out of which 2 owned & 9 leased. This...

The Byke Hospitality reported a good set of numbers for 1QFY17 with a 29% growth in revenue at Rs.619 mn vs Rs.481.4 mn YoY. The company reported ~46bps expansion in EBITDA margin to 32% YoY in this quarter. PAT increased by 37% to Rs.64mn from Rs.47mn YoY. The strong revenue performance of the company was supported by growth of 20% in F&B (Foods & Beverages) segment, increasing no. of hotels under asset light model, better utilization of capital through room chartering business and strong sales network.BOB Capital Markets Ltd valued the stock at 30x FY18 EPS and maintain BUY rating with target price of Rs.306.

Revenue for Q1FY17 rose by ~29% to INR 61.9cr from INR.48.1cr YoY. Revenue from owned & leased hotel and room chartering increased by ~21%/~36% YoY respectively. EBITDA came in at INR 12.9cr (+31.5% YoY with margin expansion of ~5bps). PAT grew to INR 6.4cr (+37% YoY).BYKE currently trades at 15x FY18E EPS. Motilal Oswal expect the company to grow its profits at 29% CAGR over FY16- 18E and maintain the target price of INR 215 (20x FY18E EPS).

Room inventory addition to drive hotel revenues by 21.2% CAGR during FY16-18E: In order to scale its room inventory and increase its geographical presence, Byke is planning to add 8 new leased properties by FY19E. We expect the 4 properties to be operational by mid-FY18E leading to an addition of ~ 420 leased rooms, ~ 10 restaurants & ~ 12 conference halls and the total hotel revenues to grow at 21.2% during FY16-18E reaching to Rs. 1677 Mn in FY18E with Rs.914 Mn contributed from room rental revenue and Rs. 763 Mn from F&B; and other segment.

We recommend to BUY The Byke Hospitality for a target of INR 215 - 20x on FY18E EPS (+28% Upside). Unique and asset-light model business model: The company...

The Byke Hospitality Ltd reported a good set of numbers for 4QFY16 with a 19.4% growth in revenue at Rs.680 mn vs Rs.569 mn YoY. The company reported ~182bps expansion in EBITDA margin to 29% YoY in...

The Byke Hospitality Ltd reported strong result for 3QFY16 with a ~23% growth in revenue at Rs.700 mn vs Rs.570 mn for 3QFY15. The company reported 373bps expansion in EBITDA margin to 24% vs 20% of...

The Byke Hospitality Ltd reported strong result for 2QFY16 with a 25% growth in revenue at Rs.454 mn vs Rs.363 mn for 2QFY15. The company reported 293bps expansion in EBITDA margin to 22.2% vs 19.3% of...

We initiate coverage on The Byke Hospitality Ltd with BUY rating and a price target of Rs.317 implying 93% upside. We believe that the growing domestic tourism would drive the growth of Company on the back of...

Six of the company's eight properties are on longterm leases (it leases out promising 23 star properties in popular tourist destinations). Byke also focuses on the MICE category (meetings, incentives, conferencing, and exhibitions), earning sizeable revenues from F&B;...