completely agree with lynchfan.the pie is big enough for many players to operate.byke usp is its 220 plus agents.there is big number of people in small town india who will require a physical face for their booking and travel.byke uses the results of chartering buisness to open leased hotels.they have multiple streams of revenue.recent research house reports puts their fy 18 pat at 43 cr.at 30 p/e we looking at 1300 cr mcap,more than double from current mcap.i think its a safe stock to be in.
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http://www.moneycontrol.com/stocks/stock_market/corp_notices.php?autono=1736341&classic=true
New CARE for bykes 11.5 cr debt - BBB
- Reason for rating will be provided soon.
- Guess ICRA rating suspension was for commercial reasons.
http://www.hospitalitybizindia.com/detailNews.aspx?aid=21944&sid=41
A hospitalitybiz article on Byke suraj plaza inauguration plus its MICR/weddings focus.
did not understand,is muchalla group given hotel on lease to byke with byke just paying rent or is it something else
Press releases by byke states is that its on long term lease. Muchalla group press releases too mention that while its owned by them its managed and operated by byke.
No info on any revenue sharing arrangement.
spoke to company secretary swati.
got the answers
- being veg is great advantage because of marwari and gujju weddings.they only want everything veg that means no non veg should be even cooked in the kitchen.
2.uk prop[erty proposal dropped.nothing happening.
3.they said they l try their best.
4.they are moving towards making all properties 3 star atleast.
5.rating suspension was time expired as payment not given on time.now its ok. - online strategy they are working and will lauch soon.
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Bought at 159 levels and roughly constituting 6% of my Portfolio.
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how revenue expected this quarter
Q2 Results out :
Sales up 25% , EBiTDA up 44% , PAT up 49%. EBITDA & PAT margin at 22% & 11%.
H1 comparison:
Sales up 39%, EBITDA up 49% , PAT up 56%
Considering the fact that ByKe suraj plaza became operational only in September, Q3 & Q4 numbers should be even better .
Bykes online travel portal is in beta stage, while it looks good it remains to be seen how far & deep would Byke go in promoting the portal once its launched.
Thanks Sreenath for taking the gist out from the report.
Below is the link for complete update on Q2 FY 16:
i think it has a moat in terms of number of agents it has
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Hey Everyone,
Please note down the following points in connection with Q2 (2015) Conference Call:
Overall:
-
Q2 financials : 45 cr (2015), 36 cr (2014)
25% growth YOY EBITDA 10 cr (2015), 7 cr (2014) EBITDA margin 22%
-
Lease Model
Contribution of Lease Hotel is 39%
Average room rent INR 2950
Room occupancy rate 51%
Total Rooms 623
Currently Byke has 697 Rooms and is targeting 1200 Rooms by 2018. Focused to grow via leased and chartering business.
-
Room Chartering Model
Contribution of Room Chartering is 61%
Average room rent Q2-2015: INR 2400,
Occupancy rate : 91%
Inventory sold 1 Lakh
240+ Agents
A) Question:
In connection with OYO as competitor -
Answer:
Yes, Byke understands the trend of mobile penetrating and also updated the following:
- Assured that currently focussing on Agents
- Looking to burn less cash when compare to OYO as they love making money than burning
- OYO is in different business;
- The pie is very big;
- 1% of total market available.
We buys inventory only for the season time and OYO guaranteeâs for the whole year.
B) Question
With regards to Higher Occupancy Rate when compared to competitors?
Answer:
- We buy inventory only in season time.
- Advance of around 3-4 months given to hotels.
- Using network 50+ cities.
C) Question:
In connection with websites working on selling hotel rooms?
Answer:
- They just guarantee hotel, no inventory is booked.
- No booking of room by them.
Conviction is getting stronger and stronger after listening to this call.
Regards,
Gaurav
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We must keep in mind that YoY, net profit has jumped from 3.27cr to 4.87cr (Sep15). This might look impressive. However, because of equity dilution (1:1 bonus in Oct14), EPS has dropped from 1.63 to 1.21 (for Sep15). Or did I miss something?
I agree that a bonus is not a real equity dilution because it doesnât bring in any money to the business. However, it still does slice the EPS in half.
I continue to be bullish on Byke and my conviction is increasing day by day. As a part of review. I was looking at the Industry Performance vs. Company Performance. And you will be glad to know that.
Rather than making any opinions and conclusions, you take a look yourself. 
The only thing, I am seeing as of now is, BYKE is a good company with good financials with good track record with good management in a stressed and asset heavy industry with asset light model.
Disc : Invested around 25-30% of my portfolio.
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2014-15 AR says they are developing an online portal tripdeal.com, but I see that this domain name is owned by someone else.
Great Share Malik, very helpful. Indeed, the conviction is increasing day after day.
As far as my discussions with few hotels, websites to sell rooms.
So when you pick up a hotel on any website, youâll see, mostly that the maximum inventory they have is 4 rooms.
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AngelBrokingResearch_BykeHospitality_IC_090915_090915134452.pdf (398.2 KB)I liked the observations made in this research report. What do you have to say?
Kind of following Byke from last 2 years but gave it a pass due to high PE in high capex industry. Over the years price has been stable and P/E corrected. In my opinion,
- Liked the business model of selecting heritage sites for hotel business where customers are kind of not impacted by recession etc.
- Presence in metros in less which is advantage of having less lease costs.
- Asset light model through room chartering and leasing.
- Seems like they can replicate the so far success story to other cities ( read the similar kind of hotel business from One Up)
Threats/questions
- Time taken for the incremental growth? Lead time to execute the expansion as per the plan?
- How long the growth phase continue? when the growth stops what would be the ideal PE considering high capex business?
- Cash flows are less and dividend payout is very less.
Discl: Entered at Rs: 152 - 3% of PF.