The growth of The Byke Hospitality is hard to miss
03-06-2015 • About The Byke Hospitality (
$THEBYKE) • By InTwits
The Byke Hospitality is a growth stock in Hotels industry. It showed noticeble revenue performance in the last years among with attractive profitability and financial model.
Growth story
The Byke Hospitality showed fast growth in the last financial year. The company's revenue surged on 16.5% in FY2015. In addition to revenue The Byke Hospitality also keeps delivering EBITDA growth. It was 30.3% in FY2015
In the longer period the company showed fast revenue growth of 54.6% from FY2012 to FY2015 annually. EBITDA surged on 93.5% from FY2012 to FY2015 annually.
The Byke Hospitality ($THEBYKE) financials for the last 5 years
| mln. INR | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Revenue | 332 | 491 | 1,009 | 1,557 | 1,814 |
|---|
| Revenue growth, % | | 47.6% | 105.7% | 54.3% | 16.5% |
|---|
| SG&A, % | | | | | |
|---|
| EBITDA | 39 | 51 | 175 | 286 | 372 |
|---|
| EBITDA growth, % | | 32.2% | 241.4% | 62.8% | 30.3% |
|---|
| EBITDA margin, % | 11.7% | 10.5% | 17.4% | 18.3% | 20.5% |
|---|
| Net Income | 22 | 24 | 78 | 159 | 200 |
|---|
| Net Income margin, % | 6.67% | 4.89% | 7.69% | 10.2% | 11.0% |
|---|
| |
| CAPEX | 254 | 164 | 158 | 90 | 88 |
|---|
| CAPEX/Revenue, % | 76.4% | 33.3% | 15.7% | 5.76% | 4.86% |
|---|
| Debt | 2 | 158 | 199 | 145 | 124 |
|---|
| Cash | 4 | 20 | 10 | 19 | 22 |
|---|
| Net Debt/EBITDA | -0.1x | 2.7x | 1.1x | 0.4x | 0.3x |
|---|
| |
| ROIC, % | 6.0% | 5.3% | 14.5% | 22.6% | 24.1% |
|---|
| ROE, % | 4.6% | 3.7% | 11.1% | 20.2% | 21.7% |
|---|
Profitability and return on investment
EBITDA growth was partly attributed to margin expansion. The Byke Hospitality's EBITDA margin surged on 2.20 pp from 18.3% to 20.5% in FY2015. In the longer period The Byke Hospitality showed fast EBITDA margin growth of 10 pp from 10.5% in FY2012 to 20.5% in FY2015.
The Byke Hospitality shows attractive ROIC at 24.1% for the last 12 months which assumes stable development model. During the last three years it surged - it was 5.31% in FY2012. It's average level of ROIC for the last three years was 20.4%.
The Byke Hospitality showed Net Income margin growth of 0.800 pp from 10.2% to 11% in FY2015. In the longer period Net Income margin surged on 6.10 pp from 4.90% in FY2012 to 11% in FY2015.
The Byke Hospitality operates at ROE of 21.7%. For the last three years the average ROE was 17.7%.
Capital expenditures (CAPEX)
In FY2015 the company had CAPEX/Revenue of 4.86%. The Byke Hospitality showed big decline in CAPEX/Revenue of 28.5 pp from 33.3% in FY2012 to 4.86% in FY2015. It's average CAPEX/Revenue for the last three years was 8.77%.
Leverage (Debt)
The Byke Hospitality has low debt level at 0.3x Net Debt/EBITDA - at the same time with high growth. In the last 3 years leverage dropped on 2.42x from 2.69x in FY2012 to 0.28x in FY2015.
Valuation vs. comparable companies
The market closed today at 17.7x EV/EBITDA for The Byke Hospitality which is 27.1% higher than 13.9x Hotels peer group avearge calculated on the basis of 65 companies. The market closed today at 32.4x P/E for The Byke Hospitality which is 95.1% lower than 665.0x Hotels peer group avearge calculated on the basis of 7 companies.
For capital intensive compnanies it's worth taking a look at EV/(EBITDA-CAPEX) multiple. The market closed today at 23.2x EV/(EBITDA-CAPEX) for The Byke Hospitality which is 558% higher than 3.5x Hotels peer group avearge calculated on the basis of 4 companies.
Peers in Hotels
Below we provide The Byke Hospitality benchmarking against other companies in Hotels industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Sayaji Hotels ($SAYAJIHOTL) | 26.3% | 18.2% | 24.5% | 29.4% | |
| Sterling Holiday Resorts (India) ($STERLINH) | | 69.9% | 50.6% | 21.3% | 26.2% |
| Asian Hotels (East) ($AHLEAST) | -62.1% | 3.4% | 76.9% | 18.9% | |
| Hotel Leelaventure ($HOTELEELA) | | 23.2% | 12.7% | 11.4% | -11.4% |
| Mahindra Holidays & Resorts India ($MHRIL) | | 15.5% | 27.8% | 10.5% | -8.0% |
| |
|---|
| Median (15 companies) | -22.5% | 14.9% | 8.6% | 5.5% | -2.5% |
|---|
| The Byke Hospitality ($THEBYKE) | | 47.6% | 105.7% | 54.3% | 16.5% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Asian Hotels (North) ($ASIANHOTNR) | 36.6% | 10.8% | 22.9% | 26.9% | |
| Kamat Hotels (India) ($KAMATHOTEL) | 31.9% | 29.7% | 22.1% | 26.7% | |
| Tgb Banquets And Hotels ($TGBHOTELS) | 20.0% | 21.2% | 23.6% | 25.0% | 21.6% |
| Country Club (India) ($COUNCLB) | 31.8% | 34.2% | 32.3% | 24.2% | |
| Royale Manor Hotels & Industries ($RAYALEMA) | 24.1% | 36.3% | 23.5% | 23.2% | |
| |
|---|
| Median (14 companies) | 25.3% | 21.9% | 22.9% | 21.0% | 16.8% |
|---|
| The Byke Hospitality ($THEBYKE) | 11.7% | 10.5% | 17.4% | 18.3% | 20.5% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Country Club (India) ($COUNCLB) | 53.8% | 58.7% | 36.6% | 49.6% | |
| Asian Hotels (North) ($ASIANHOTNR) | 60.3% | 30.8% | 60.2% | 37.2% | |
| Sterling Holiday Resorts (India) ($STERLINH) | 12.2% | 48.8% | 50.4% | 18.7% | |
| Mahindra Holidays & Resorts India ($MHRIL) | 20.4% | 26.0% | 26.5% | 15.4% | 18.0% |
| Oriental Hotels ($ORIENTHOT) | 31.7% | 24.3% | 17.7% | 13.1% | 7.5% |
| |
|---|
| Median (12 companies) | 20.4% | 26.0% | 22.1% | 11.4% | 4.8% |
|---|
| The Byke Hospitality ($THEBYKE) | 76.4% | 33.3% | 15.7% | 5.8% | 4.9% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Mahindra Holidays & Resorts India ($MHRIL) | 20.1% | 13.4% | 22.2% | 16.3% | 6.3% |
| Sayaji Hotels ($SAYAJIHOTL) | 10.2% | 13.1% | 9.4% | 14.2% | |
| Fomento Resorts & Hotels ($FOMEHOT) | 13.6% | 10.6% | 13.8% | 11.7% | |
| Tgb Banquets And Hotels ($TGBHOTELS) | 7.4% | 7.1% | 8.9% | 8.9% | 3.2% |
| Eih ($EIHOTEL) | 4.5% | 5.5% | 4.5% | 5.8% | |
| |
|---|
| Median (29 companies) | 7.9% | 5.9% | 4.7% | 2.8% | 3.5% |
|---|
| The Byke Hospitality ($THEBYKE) | 6.0% | 5.3% | 14.5% | 22.6% | 24.1% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Hotel Leelaventure ($HOTELEELA) | 23.9x | 62.5x | 40.2x | 33.5x | 46.7x |
| Asian Hotels (North) ($ASIANHOTNR) | 9.1x | 28.4x | 11.0x | 15.4x | |
| Kamat Hotels (India) ($KAMATHOTEL) | 15.0x | 13.6x | 17.8x | 15.1x | |
| Asian Hotels (East) ($AHLEAST) | -0.1x | -0.0x | 9.8x | 8.9x | |
| Oriental Hotels ($ORIENTHOT) | 3.4x | 4.3x | 4.6x | 6.0x | 5.5x |
| |
|---|
| Median (19 companies) | 2.2x | 1.8x | 2.3x | 1.0x | 0.9x |
|---|
| The Byke Hospitality ($THEBYKE) | -0.1x | 2.7x | 1.1x | 0.4x | 0.3x |
