The shares of the micro-cap hospitality stock touched 5% upper circuit after signing agreements and Memorandum of Understanding (MoUs) to operate hotels in multiple locations.
Share price variations:
With a market capitalization of Rs. 317.64 crores, the shares of The Byke Hospitality Ltd hit its upper price band of 5% in NSE on Monday at Rs. 71.01 per share from its previous closing of Rs. 67.63 per share. The share price has increased by 26.35% over the last six months and 82.78% in the past year.
Reason for Rise:
As per the exchange filings, The Byke Hospitality Ltd has signed lease agreements and Memorandums of Understanding (MOUs) to operate hotels in the following locations: Mahabaleshwar (87 rooms), Nashik (28 rooms), Surat (56 rooms), Palghar (110 rooms), and Prayagraj (81 rooms).
The hotels will feature a range of amenities, including a swimming pool, multi-cuisine restaurant, destination wedding facilities, discotheque, spa & gym, bar, kids play area, coffee shop, banquet halls, lawn, well-equipped kitchen, indoor & outdoor games, mini theatre, and a clubhouse.
Financial Performance:
For Q1 FY25 the company reported a net profit increase of 53.33% to Rs. 2.30 crores compared to Rs. 1.50 crores in Q1 FY24, while revenue from operations marked an increase by 15.90% to Rs. 23.27 crores from Rs. 20.05 crores in comparison to the same period, also the company has reduced its debt for the past two quarters.
Management Expectations:
Management aims to expand its hospitality business across India, with a strategic focus on metropolitan areas, Tier 1, and Tier 2 cities. While Mumbai and Delhi remain central to the operations, they also target prominent tourist destinations.
About the company:
Incorporated in 1990, The Byke Hospitality Ltd is one of India’s fastest-emerging hospitality groups, with a presence in 9 states and 16 cities. Operating 21 hotels with a total of 1,255 rooms, it is a leading pure vegetarian hotel and resort chain.
The group also offers spacious banquet facilities and lawns, ideal for social and corporate events.
According to the FY24 annual report, approximately 63.29% of The Byke Hospitality Ltd revenue comes from room rentals, while 35.21% is generated from food, beverages, and other services.
As on March 31 2024 the company operates 19 properties of which 2 are owned, 15 are on long-term lease, and 1 is under a Management Contract primarily for The Byke Brand and 1 is under Revenue Sharing.
Written By: Joseph Pv
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