Market Cap ₹ 41532Cr.
Current Price ₹ 69
Lot Size 500
52W High ₹ 160
EPS -3.56
P/B 28.8
Face Value 1
Debt to Equity 3.36
Stock P/E -19.4
Book Value ₹ 2.4
Company
52W Low ₹ 65
Demat Account Both
ISIN INE561T01021
Valuation
Company Overview:
Oravel Stays Limited, doing business as OYORooms, operates a travel and hospitality software. The Company develops a platform which provides an affordable and trusted accommodation that guests can book instantly. OYORooms serves customers worldwide.
Oyo (Oravel Stays Limited) is a leading, new-age technology platform empowering the large yet highly fragmented global hospitality ecosystem. It has focused on reshaping the short-stay accommodation space since its incorporation in 2012 and has developed a unique two-sided technology platform focused on addressing key pain points of their Patrons (being the owners, lessors, and/or operators of storefronts listed on their platform) on the supply side and their customers (being travelers and guests who book accommodations at their Patrons’ storefronts through their platform) on the demand side.
Their business model helps their Patrons transform fragmented, unbranded, and underutilized hospitality assets into branded, digitally-enabled storefronts with higher revenue generation potential and provides their customers with access to a broad range of high-quality storefronts at compelling price points.
As of March 31, 2021, Oyo had 157,344 storefronts across more than 35 countries listed on their platform. Oyo has the largest footprint (in terms of hotel storefronts) in its key markets of India & SEA and the second-largest footprint in Europe (in terms of homes storefronts) among full stack short-stay accommodation players as of September 9, 2021.
Key Highlights:
Oyo has 157K+ storefronts across 35 countries - Largest footprint in terms of hotel storefronts in India and SEA, second largest footprint in Europe in terms of home storefronts
The Oyo Customer app has over 100 million downloads as of March 31, 2021; third most downloaded travel mobile app globally with and most downloaded in Asia, in 2020 (as per Sensor Tower)
77.8% of our demand globally (excluding TUI home storefronts) was generated from repeat and new organic demand on our D2C channels during Fiscal 2021
90.3% of our demand in India was generated from repeat and new organic demand on our D2C channels during Fiscal 2021.
Oyo Wizard had 9.2mn members as of March 31, 2021- making it one of the largest loyalty programs run by leading travel or food brands in India, and the largest among online hotel or food brands in India, based on the number of members as of March 31, 2021, according to RedSeer.
As of March 31, 2021, 99.9% of the storefronts on our platform do not have fixed payout commitments or minimum guarantees
Adjusted Gross Profit Margin improved from 9.7% in Fiscal 2020 to 33.2% in Fiscal 2021
~78.9% reduction in Adjusted EBITDA losses from FY20 to FY 21
OYO is a uniquely positioned, leading, full stack player in high growth and large markets: OYO addresses the pain-points of hotels and homes across the world by offering cloud-based technology and a fully integrated tool kit, unlike most other players. OYO has the widest and most integrated selection of technology tools compared to other merchant solution providers for hotels and homes. It offers tools across offline-to-online onboarding, 3rd party distribution and demand, online revenue management, operations management and customer service, all integrated in a single place. This empowers patrons who own and operate hotels and holiday-homes to acquire customers and drive revenue by servicing them effectively, while also ensuring operating leverage at the backend. OYO offers its integrated tech-stack on a simple revenue sharing basis. OYO’s integrated tech-stack for merchants enables it to earn a higher and more sustainable revenue share than other merchant solution providers. A hotel and home storefront that would take all services from different third parties through a patchwork approach may end up spending 25%-35% (in cumulative across different service providers), compared to OYO’s revenue share (net of discounts and loyalty points) of 20-35%.
OYO provides end-to-end offerings to customers: OYO’s full stack approach and integration with storefronts enables OYO to offer a wider set of offerings integrated in its D2C platform as compared to the other D2C offerings in the market. It provides services across various customer touchpoints, from discovery to support experience, along with benefits of loyalty programmes and referrals, all integrated in a single platform.
OYO is also well positioned to lead the fast growing on-demand use case category, creating a differentiated demand funnel: The on-demand economy has grown exponentially across industries fueled by the growing customer appetite for convenience, simplicity, and speed. Players have leveraged this growing appetite, cost effectiveness and efficiencies of new technologies to successfully disrupt customer-facing industries. For instance, services like on- demand food delivery, grocery delivery and shared mobility have changed the customer landscape for restaurants, traditional grocery stores, and taxis respectively. This is visible as on-demand GBVs in food services, grocery and mobility (cabs and taxis) in India had CAGRs of 145%, 65% and 31% respectively between 2017 and 2019.
OYO has significantly large footprint in India, SEA and Europe: Through its comprehensive technology-based offerings across the supply stack, OYO has been valuable to patrons and has significantly ramped up inventory. As a result, OYO has the largest footprint (in terms of hotel storefronts) in its key markets of India & SEA and the second largest footprint in Europe (in terms of homes storefronts) among full stack short-stay accommodation players as of September 9, 2021, achieving this scale in a shorter period of time than its competitors.
OYO-powered Storefronts are Performing Better than Fragmented and Independent Hotels / Homes: In India, Indonesia and Malaysia, OYO-powered hotel storefronts that joined the platform in 2018 and 2019 performed better than independent hotels of similar sizes in India, Indonesia and Malaysia respectively in 2019 on average. After 12 weeks of joining the OYO platform, OYO-powered hotel storefronts generated 1.5 to 1.9 times more revenue on average compared with the average revenue estimated at independent hotels of a similar size in India, Indonesia and Malaysia in 2019. In Europe, OYO-powered home storefronts earned an average of 2.4 times more revenue in 2019 compared with the average revenue estimated at an independently managed home in Europe in 2019.
Mission & Vision:
Our mission is to empower entrepreneurs and small and medium businesses that own or operate hotels and homes by providing full-stack technology products and services that aim to increase their revenue and ease their operations, and to enable our global network of customers to book affordable and trusted accommodations through a seamless digital experience on our platform.
Business Segments:
Patrons: Patrons are owners, lessors and/or operators of storefronts listed on OYO platform. OYO power out Patrons’ hotel and home operations with integrated, full-stack technology suite and focus on designing technology solutions that enable Patrons to drive automation across their business and enhance their revenue generation potential.
Value proposition to Patrons:
Integrated full-stack technology suite:Our value proposition to our Patrons is built on the back of our integrated, full-stack technology suite, which empowers all mission-critical aspects of their businesses. Our platform provides a one-stop solution, enabling key business functions ranging from digital sign-up and onboarding, revenue management, daily business management and D2C stacks. Our solutions are packaged in a streamlined, user-friendly interface through our flagship Patron applications, Co-OYO and OYO OS. By partnering with OYO, our Patrons significantly reduce the need to obtain multiple products and engage multiple vendors for specific operations.
Enabling digital presence:. More than 70% of the new storefronts on our platform in the three months ended March 31, 20219 did not have any online presence prior to joining our platform. In certain instances, Patrons that list a single hotel or vacation home with us gradually expand to multiple storefronts. As at March 31, 2021, more than 2,700 Patrons globally had more than one hotel or home storefront listed on our platform. Patrons that list their storefronts on our platform typically experience improved visibility and brand presence with Customers, wider distribution, yield improvement and increased automation. With growing Customer preference for digital interactions through onlinechannels, this becomes a critical enabler for growth of our Patrons’ businesses.
Access to a large Customer base through our D2C channels: Our Patrons also benefit from the significant direct demand generated through our D2C channels. We provide high quality experiences at compelling prices through our feature-rich app which adds to the stickiness of our Customers on our platform, thereby generating significant direct demand. Our Patrons also benefit from strong organic and repeat demand from our Customer base, which is driven by our attractive OYO Wizard loyalty and “Invite & Earn” referral programs. This enables our Patrons to benefit from the high demand from our D2C channels once they join our platform, further increasing their revenue generation potential. In India, which is our most mature market in terms of scale of our storefront footprint, over 90% of our booked nights was generated by direct demand through our D2C channels in Fiscal 2021. In Indonesia and Malaysia, which are part of our Core Growth Markets, more than 60% of our booked nights were generated by direct demand through our D2C channels in Fiscal 2021. Similar to what we have witnessed in India, we believe that there is potential for continued growth in our D2C platform as we further scale in other markets.
Increased revenue generation potential:. We aim to increase our Patrons’ revenue generation potential by providing them with access to our large Customer base through our D2C channels and indirect channels, coupled with our suite of innovative products. Our deep understanding of online marketing strategies enables us to effectively deploy our market insights and technology across channels, including artificial intelligence and machine learning-based dynamic pricing, optimizing storefront content, reviews and images, which help to drive better Customer conversion rates and yield.
Competitive Strength:
Wide selection: Our wide selection of storefronts provides our Customers with a range of accommodation options within a particular area, enabling our Customers to stay closer to where they need to be, whether it is near family, a business location, a hospital or a specific site of interest.
Value-for-money stays: Our Customers enjoy high-quality experiences at value-for-money prices. We help our Patrons price their offerings competitively compared with other budget hotels with similar ratings in the same area. In addition, our Customers can easily enroll in our loyalty program, OYO Wizard, and gain access to exclusive member rates, as well as collect loyalty points with every stay.
Trustworthy brand: We believe that our brand perception is aligned with the consistent and high- quality experiences offered to Customers. We have implemented various initiatives to provide our Customers with safer and more reliable stays, such as our “Sanitised Stays” and “Vaccinaid” search filters and our introduction of contactless check-ins. In addition, storefronts are assessed monthly based on our quality and control framework, which takes into account constant availability of rooms, consistent Customer experience and compliance with our standard operating procedures. Storefronts that do not meet our minimum standards are temporarily or permanently delisted from our platform.
Seamless booking experience: Our D2C platform allows our Customers to seamlessly discover and book storefronts suited to their personal preferences at affordable prices. We provide Customers with access to various digital tools on our D2C platform, with the aim of providing a superior end-to-end experience. Our simplified user interface enables Customers to make a booking in three steps – search, select, book.
Access to real-time support: We are focused on delivering a hassle-free experience to our Customers. During their stay, Customers can access and manage various in-room hotel services through our mobile application, including receiving live status updates of housekeeping services and food and beverage orders. Our Customers have continuous access to real-time support before, during and after their stay, through our proprietary Customer support platform, Yo! Help.
Key Strength of OYO:
Scaled footprint with leadership in Core Growth Markets: As at March 31, 2021, OYO had 157,344 storefronts across more than 35 countries listed on our platform. As at September 9, 2021, OYO had the largest footprint in terms of hotel storefronts in India and SEA and the secondlargest footprint in Europe in terms of home storefronts among full stack short-stay accommodation players, according to RedSeer.
Full-stack technology platform driving strong value proposition for Patrons and Customers: OYO’s technology is the foundation of their business. Their comprehensive, full-stack technology suite integrates more than 40 products and services across our digital sign-up and onboarding, revenue management, daily business management and D2C stacks into our two flagship Patron applications, Co-OYO and OYO OS. Our proprietary platform is highly differentiated and has been developed largely by our in-house engineering and product and design teams, rather than through an aggregation of products developed by external software vendors.
High degree of engagement with our Patron and Customer community: OYO gets benefit from strong engagement with our Patrons and Customers, leading to healthy retention rates and revenue share retention. Our scaled network of Patrons and Customers and high level of engagement with them provides us with a deep understanding of the markets in which we operate, enabling us to continue to innovate and layer additional solutions to our existing integrated technology stack.
Virtuous flywheel driven by strong network effects: The scale of our business drives a self-reinforcing flywheel underpinned by strong local network effects and operating leverage. We believe that the virtuous cycle created by this flywheel effect enhances our platform stickiness and unit economics for us and our Patrons with increasing scale.
Promoters and ShareHolding Pattern:
Peer Comparison:
Financials:
Source: Company Filing Form AOC-4
Source: Company Filing Form AOC-4
Source: Company Filing Form AOC-4
Valuations:
In FY22, the company's EBIDTA fell by 72 % y-o-y. In FY 2021, the company has recorded loss of ₹19,339.76 Cr. in EBITDA, compared to ₹3,918 Cr. in FY21. Because of lower operational expenses, other expenses, employee benefits expenses, and depreciation and amortization expenses, the company's overall expense reduced by 68% y-o-y in FY22. The net operating loss of the company has increased in FY22 compared to in FY21 because depreciation and amortization expenses decreased by 78.6% y-o-y in FY22 primarily due to a decrease in depreciation of right of use assets as a result of a significant reduction in the number of patron contracts with monthly minimum guarantee payments from us, a reduction in our leased office premises, and a decrease in depreciation of property, plant, and equipment as a result of the streamlining of operations in the company's self-operated co-working and co-living spaces businesses due to lower demand in FY20. In the last four financial years, the company's total asset has expanded by 88% y-o-y (FY18 to FY22). The company has made some acquisitions in recent years, which is wonderful, but long-term investments and current assets have declined. In the last four financial years, the company's overall goodwill has climbed by more than 539% y-o-y.
The company's debt-to-equity ratio has grown. The business's restated loss grew under retained earnings, affecting total equity, which fell 67% y-o-y in FY22. The company also paid a cumulative dividend on preference shares. The company's overall debt has dropped, but the D/E ratio has grown due to a decrease in equity.
News:
Yes trading in unlisted shares is undoubtedly legal in India. The trading takes place in the over-the-counter market through various platforms like Stocx.in.
No, SEBI does not regulate the unlisted share market but certain rules and regulations of SEBI are applicable in the unlisted market space as well, such as, the DP charges for each transaction, stamp duty, lock-in period and more.
You will get the best price for Oravel Stays Limited and a hassle-free buying experience only on Stocx.in platform.
Oravel Stays Limited's unlisted shares can be easily purchased at Stocx.in by following a few easy steps. Given below are the steps involved in the buying of these shares:
Step 1 - Confirmation on the number of shares you want to purchase of Oravel Stays Limited at a trading price.
Step 2 - Submission of the necessary document like your Client Master Report. Certain additional documents will also be asked for by our representative if required such as a cancelled cheque and your PAN Card if you are paying from a secondary bank account which is not mentioned in your CMR.
Step 3 - The Stocx.in representative will share the account details so that you can transfer the trade amount into the account.
Step 4 - The shares of Oravel Stays Limited will reflect in your Demat account within 24 hours as soon as the payment is received and depending on the holidays. Our details would be available to you before the transfer.
Oravel Stays Limited's unlisted shares can be easily sold at Stocx.in by following a few easy steps. Given below are the steps involved in the of selling of these shares:
Step 1- Confirmation on the number of shares you want to sell of Oravel Stays Limited and at what price you want to sell.
Step 2- At Stocx, we will find a suitable buyer for you according to your requirements and if you accept the trade we will move on to the transfer and the payment aspect of the trade.
Step 3- The Stocx representative will provide you with the Demat account details to transfer your Oravel Stays Limited shares. They will also notify you about the additional details required from your end before the transfer of shares such as client master copy, delivery instruction slip, and more.
Step 4- Once the transfer is complete, the payment would be credited to your bank account within 24 hours, depending on the holidays.
Over the years the minimum ticket size for investment has dropped as more and more people have started investing in the Unlisted market. Currently, the minimum ticket size for Oravel Stays Limited is between 30K to 50K.
Brokers or dealers provide you with a trading facility means you can buy and sell shares with your broker but when you buy shares the Depository holds your shares. There are mainly two depositories NSDL and CDSL.
If you want to check your shares in NSDL and CDSL you need to download the application (NSDL Speede App or CDSL myeasi).
The taxation on the Oravel Stays Limited shares may vary depending on 2 Factors:
Short-term capital
Unlisted shares - In unlisted shares, the taxation of short-term capital gain i.e. less than 24 months is taxable according to the investor's income tax slab.
Listed Shares - In listed shares, the taxation for short-term capital gains i.e. less than 12 months is at 15%
Long-term capital
Unlisted shares - The taxation for long-term capital gain i.e. more than 24 months is taxable at 20% with indexation benefits.
Listed Shares - The taxation for long-term capital gains i.e. more than 12 months is at 10% after an exemption of 1 lakh. There are no indexation benefits in listed shares.
According to the current rule issued by SEBI last year in August 2021, the lock-in period is brought down from 1 year to 6 months. This was done to entice more investors to invest their money in pre-IPO companies and startups. The lock-in period of Oravel Stays Limited varies depending on which type of investor you are:
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