Byke hospitality - Truly asset light?


(vignesh) #269

From the Annual report of Vakrange 2011 , 2012 I could see that Anil Patodia was an Independent Director. Vakrange off late is having a lot of corporate governance issue. Might be because of this Byke is also getting affected . Did any one enquire about this with the management and the response from the management on this in AGM / Conference call ? Any more details on this will be highly useful.
This might be reason for continuous fall in share price.


(Vikas Kasturi) #270

At the end of Sep quarter 16.85 L shares were pledged. But on 05-Oct 20.52 L pledged shares are bought by ECL. So why was there no disclosure of the additional shares? I have emailed the IR guys thrice so far and am yet to get a response (which by itself could mean something). I have said that this will be shareholder complaint if they don’t respond. Please see attached document for screenshots.

Byke- non disclosure of pledge shares.pdf (452.1 KB)


(Johns George) #271

Great job Vinay and a great help, truly appreciate!


(Johns George) #272

Thank you @VikasKasturi, great help.


(Johns George) #273

Any details about the resignation of COO?
https://www.bseindia.com/xml-data/corpfiling/AttachHis/bc9dfbf2-7c6b-49d5-91dc-c77ccea58558.pdf

This is purely a scale game, the growth will come only by scaling up. To scale up at a good pace, the operations must be run properly and the expansion team must fire on all guns. Management must have and execute a strategy at the same time build a culture which keeps up the expanding operations.

A COO comes in and goes in a giffy.

Does anyone know the details of whats going on in these fronts?


(paresh.sarjani1) #274

This all is fine but what about the promise made by chairman that all four hotels which are yet to start operations will start before year end…

Borivali Delotel OC shouldn’t have taken so much time… Everything is running very slow… Disappointed


(Johns George) #275

The delay due to approvals/paperworks is there for all hotels. Lemontree mentions about losing huge amounts due to delay in approval for a hotel at an airport.
We need to know if there is any delay besides the paperworks.
From what I could read from the AGM and conf call notes here, the management does not say about a clear expansion strategy.


(vignesh) #276

In the investor presentation they had given the timelines for the Various hotel openings. About 3 hotels are expected to be opened by this quarter I guess as per the investor presentation provided to the stock exchanges.


(vinay_new07) #277

Relentless fall in the share price. This is really testing the patience and courage. While there does not appear to be anything grossly wrong with the company (purely based on Financials and news flow except may be the COO resignation), but the continuous fall suggests that there may be some information not yet available in public domain.

Eagerly waiting for results and hopefully investor call for things to get clear.


(Rushikesh Kanthamani) #278

Yes I am too waiting for the results and management concall, dont really understand why there is this much fall lately. Its like stock is just a falling rock and with no reason(for now atleast). One good thing to note here is that the fall is with very low volumes, so dont think it has to be taken at face value. Its looking very much attractive at these lvls but once needs to access the reason for such a fall and then only enter/addmore. Another reason might be FII selling of nearly 1.8% and bad sentiments because of the pledge the co carries and some what slower than expected executions.


(vinay_new07) #279

True. I think its high promoters come out with some positive trigger. Easiest would be to do away with shares pledge, while another possible step would be to buy from open market. The share is now almost 25% (down 75% from highs of 200). For almost a debt free company and good return ratios and favorable industry outlook, the stock appears extremely cheap. But the fall has been excessive, which questions whether all the available can be taken at face value.


(paresh.sarjani1) #280

Something is cooking… Day on day new lows…
One more low today…

@VikasKasturi did you get any response


(Johns George) #281

PE at the peak, around Aug 2017 I think - 23
EPS at the time - 7.9 (2017 Mar)
PE now - 6
EPS now - Close to 9.0

There is only one change in the fundamental nature of the business, which we know from the management, is going away from Chartering and more towards O&L, which I think will increase the competitive advantage.

There is no other negatives, acknowledged by the management. In fact, they are adding number of rooms and properties.

I still would like to tell myself, be calm, the stock will come back up.


(vignesh) #282

Spoke with the Company Secretary yesterday. She says nothing is wrong with the company and things are as usual . Lets c this quarter result / share holding pattern.


(Hrusikesh) #283

I just went to their website(http://www.thebyke.com/) and saw that only 9 properties are listed when you try to book. The management was confident during the AGM that they will make 2/3 properties operational by year end(2018). Looks like that is not the case. Byke Delotel is still not functioning.
I would say the company has slipped on the execution front.
Based on their performance in past few years, I believe(it is more hope than belief!) this company has the capability to execute on their plan.
Meanwhile, the tripadvisor reviews continues to be pretty bad, not a good thing for the brand.

Waiting for the quarterly results and the subsequent conference call.


(vignesh) #284

In their investor presentation , they have mentioned that Byke Delotel is expected to start operation only in Q4FY19. Yes Quarterly result should provide more info.


(Marathondreams) #285

Its never good idea to invest in any company whose customer reviews are consistently bad. I noticed that last year and decided not to invest here, as I give lot of importance to tripadvisor reviews when I plan my personal vacation.(and never had any bad experience with reviews going wrong)


#286

Not necessarily. Sometimes people expect more than they have paid for and post negative reviews. Also, sometimes management changes and the old reviews are not relevant anymore. But in the case of Byke, they are probably true, and we all thought this issue has been dealt with from the management, but looks like it is not.


#287

How could they ignore the negative reviews, as it is the one feedback that is available to public at the click of a button. Such negative consistency does affect the business in this day and age, this hole in the boat should be patched up properly. I will try to contact the management regarding this.


(Rushikesh Kanthamani) #288

The management told in the AGM that they will respond to negative reviews and promised to focus more on brand building things going a head, like building good image, reviewing bad reviews and taking appropriate action, take suggestions from customers and improve etc. Are they not working on this front even after pinpointing the bad reviews part by some of our members? Are there any new bad reviews or are we looking at the old one only? Many times what happens is that our mind reacts to the negative part of the co more as the stock is down but at the same time will ignore negative stuff when stock is up high. So m just trying to understand that are they getting equal amount of bad reviews as they used to get or is there any slight improvement ? Last time(2-3 months back) when I checked TripAdvisor then at that time they were replying to bad comments and were doing their job as per our request so it was positive sign to start with.