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 Returns Increase: 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

• Debt Challenges: There's capability for Lack of secured funding for refinancing in the next 12-18 months to lead to financial strain.
• Risk of Losing Domain Share: There's capability for Competition and failure to meet increase targets to impact marketplace status and profitability.

Valuation View

The current unlisted market price is ₹24.75 per share with a market capitalisation of approximately ₹35033 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.