The Byke Hospitality Limited

Consumer Cyclical — Lodging · NSE

₹29.69+₹0.32 (+1.09%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of The Byke Hospitality Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

The Byke Hospitality Limited operates in the hospitality business in India. The company operates hotels, resorts, and service apartments. The Byke Hospitality Limited was incorporated in 1990 and is based in Mumbai, India.

IndustryLodging

SectorConsumer Cyclical

Employees1,123

Annual revenue₹107 Cr

How does it make money?

Turns over ₹107 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹46 left at the operating level before interest, tax and depreciation. Each of its 1,123 employees supports ₹9.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹9.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 6.0% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -7% while net margin moved +214% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-7%

Margin effect+214%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 2.9% is weak

Quality vs. Valuation

Company Quality

55/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

88/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

1.0x

3Y Median

57.6x

40 monthly readings · mean 67.1x · range 22.8x–152.1x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 98% below its 3y median of 57.6x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 99% below the peer median of 69.2x.

vs. its own history

Cheap

57.6x median over 40 months · -98%

vs. sector peers

Cheap

69.2x median of 4 peers · -99%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.3x

PEG

0.02

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 35.7% to 45.7% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.6x — little room if earnings dip.
🟡Debt is increasingFinancial
Total debt is up 31% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 30% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 35.7% to 45.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 98% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 99% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹6 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 44%✓ 45.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✗ 1.6x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹6 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 6.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹155 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

1.0x

Cheap

Cheap against the generic band

P/B Ratio

0.67x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹31

Profitable

Profitable on a per-share basis

ROE

2.9%

Weak

Weak capital efficiency

ROCE

6.0%

Weak

Low return on total capital employed

Debt/Equity

0.46x

Low

Conservative leverage

Revenue Growth (YoY)

7.6%

Modest

Modest growth

Profit Growth (YoY)

4.9%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹6 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

16.1%

Good

Healthy core-business profitability

Net Margin

6.3%

Average

Average bottom-line conversion

Current Ratio

2.52

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.57

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

29.7 / 30.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

49.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹114 Cr	₹84 Cr	₹97 Cr	₹107 Cr	-2.3%
EBITDA	₹41 Cr	₹36 Cr	₹39 Cr	₹49 Cr	+6.0%
EBITDA Margin	35.7%	43.4%	40.3%	45.7%	—
PAT (Net Profit)	₹2 Cr	₹6 Cr	₹5 Cr	₹7 Cr	+43.1%
EPS	₹0.57	₹1.39	₹0.9	₹1.28	+30.9%
ROE	1.4%	2.8%	2.0%	2.9%	—
ROCE	5.3%	4.5%	4.4%	6.0%	—
Total Debt	₹81 Cr	₹59 Cr	₹93 Cr	₹106 Cr	+9.5%
Free Cash Flow	₹19 Cr	₹13 Cr	-₹4 Cr	₹6 Cr	-33.8%

🔴 Revenue has shrunk at 2.3% a year over 3 years.

🟢 EBITDA has grown at 6.0% a year over 3 years.

🟢 EBITDA Margin has risen from 35.7% to 45.7% over 3 years (+10.0 pts).

🟢 PAT (Net Profit) has grown at 43.1% a year over 3 years.

🟢 EPS has grown at 30.9% a year over 3 years.

🟢 ROE has risen from 1.4% to 2.9% over 3 years (+1.5 pts).

🟡 ROCE has held roughly flat at 6.0% over 3 years.

🔴 Total Debt has grown at 9.5% a year over 3 years.

🔴 Free Cash Flow has shrunk at 33.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹344 Cr

Total Liabilities

₹113 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹22 Cr

Capex

-₹16 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

51.7%

Corporate Actions

Ex-Dividend Date

18 Sept 2018

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

6 general

The Byke Hospitality Share Price Outlook: Where It Could Be in 3 Years

Univest, 03 Aug

The Byke Hospitality (BYKE.NS) Eases to ₹28.95 as Stock Hovers Above Key Support Zone - VWAP Deviation

siam.in, 02 Oct

The Byke Hospitality signs deals for 137 keys in Mumbai, Nashik

scanx.trade, 11 Aug

The Byke Hospitality Share: Bull Case vs Bear Case for 2026

Univest, 25 Sept

The Byke Hospitality sets Sep 19 as AGM e-voting cut-off date

scanx.trade, 19 Sept

The Byke Hospitality Limited Completes Postal Ballot for Independent Director Re-appointment

scanx.trade, 31 Mar

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Growth

WeakProfitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑