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Check Before You Invest : The Byke Hospitality Ltd

BSE: 531373 NSE: BYKE ISIN: INE319B01014
  |   Sector:  Travel & Hospitality   |   Industry:  Hotel, Resort & Restaurants

Snapshot

Q.1 Which industry/sub-sector does The Byke Hospitality Ltd belong to?
The Byke Hospitality Ltd belongs to the Travel & Hospitality sector, operating specifically within the Hotel, Resort & Restaurants segment.
Q.2 Is The Byke Hospitality Ltd a good quality company?
The Byke Hospitality Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is The Byke Hospitality Ltd undervalued or overvalued?
The Byke Hospitality Ltd appears Somewhat Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 27.87 52.17
Price to Book 0.81 1.12
Price to Sales 1.75 1.98
EV to EBITDA 4.04 7.38
Q.4 Is The Byke Hospitality Ltd a good buy now?
The Byke Hospitality Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of The Byke Hospitality Ltd?
The Byke Hospitality Ltd revenue growth is 15.2% for FY-2025, which is above its 5-year CAGR of -4.58%, indicating faster growth.

Q.2 Gross Profit margin of The Byke Hospitality Ltd?
The Byke Hospitality Ltd Gross profit margin which is the profit after deduction of direct costs, is 31.5% for FY-2025, which is above its 5-year median of 27%, indicating increasing margins.

Q.3 Operating Profit Margin of The Byke Hospitality Ltd?
The Byke Hospitality Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 38.62% for FY-2025, which is above its 5-year median of 34.95% indicating increasing margins.

Q.4 Net Profit Margin of The Byke Hospitality Ltd?
The Byke Hospitality Ltd Net Profit Margin is 4.75% for FY-2025, is above its 5-year median of 2%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 31.5 27
Operating Profit Margin (%) 38.62 34.95
Net Profit Margin (%) 4.75 2

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of The Byke Hospitality Ltd?
The Byke Hospitality Ltd Return on Asset is 1.57%, which is above its 5-year historical median of 0.9%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of The Byke Hospitality Ltd?
The Byke Hospitality Ltd Return on capital employed is 6.04% for FY-2025, which is above its 5-year historical median of 5.71%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of The Byke Hospitality Ltd?
The Byke Hospitality Ltd Return on equity is 2.19% for FY-2025, which is above its 5-year historical median of 1.45%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of The Byke Hospitality Ltd?
The Byke Hospitality Ltd Cash conversion cycle is 116 days, below its 5-year historical median of 141 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.33 0.33
ROE (%) 2.19 1.45
ROCE (%) 6.04 5.71
Cash Conversion Cycle 116 days 141 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of The Byke Hospitality Ltd?
The Byke Hospitality Ltd Debt-to-Equity ratio is 0.05, which is lower the industry average of 0.06, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of The Byke Hospitality Ltd?
The Byke Hospitality Ltd Debt to cash flow from operations is 1.11, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of The Byke Hospitality Ltd?

Q.1 Promoter shareholding and pledge status of The Byke Hospitality Ltd?
Promoters hold 42.25% of the The Byke Hospitality Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does The Byke Hospitality Ltd performance compare with that of its Peers?

Q.1 Revenue growth of The Byke Hospitality Ltd vs industry peers?
The Byke Hospitality Ltd revenue CAGR is -4.58%, compared to the industry median CAGR of 3.58%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 15.2 3.6
Gross Profit Growth (%) 3.5 15.6
Operating Profit Growth (%) 5.7 13.5
Net Profit Growth (%) -16.7 18.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.33 0.27
ROE (%) 2.19 2.92
ROCE (%) 6.04 6.09
Cash Conversion Cycle (days) 115.87 -

Valuation & price assessment

Q.1 Stock return of The Byke Hospitality Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -14.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-14.1% 11.3% -2.9% -62.7%
Q.2 Valuation ratios of The Byke Hospitality Ltd vs historical?
The current P/E ratio of 27.87 is lower than its historical median of 52.17, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 27.87 52.17 32.28
Price to Book 0.81 1.12 1.81
Price to Sales 1.75 1.98 5.80
EV to EBITDA 4.04 7.38 17.25

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