Last updated on December 11th, 2024 at 03:30 pm
Oravel Stays Limited, popularly known as OYO, is a leading name in the global hospitality ecosystem. Known for its asset-light business model and innovative technology platform, OYO has reshaped the short-stay accommodation space worldwide. With its IPO on the horizon, the OYO unlisted share price currently stands at ₹55 per equity share. This article explores OYO’s share price trends, business highlights, and its future growth potential.
OYO Unlisted Share Performance
The OYO unlisted share price has experienced significant fluctuations in recent months. Below is a snapshot of its market performance:
- Current Price: ₹55 per share
- 52-Week High: ₹82 per share
- 52-Week Low: ₹38 per share
- Market Capitalization: ₹35,750 crore
- P/E Ratio: 157.14
- P/B Ratio: 39.57
- Debt-to-Equity Ratio: 4
These figures underscore OYO’s growing valuation, fueled by strategic funding rounds and operational improvements.
Key Highlights of OYO’s Business Model
- Technology-Driven Platform: OYO operates a unique two-sided platform that addresses the needs of both Patrons (hotel owners) and Customers (travelers). It offers a full-stack technology suite integrated with more than 40 products, including the flagship Co-OYO and OYO OS applications.
- Asset-Light Model: OYO’s asset-light model ensures scalability with minimal capital expenditure. As of March 31, 2021, 99.9% of the 157,344 storefronts listed on the platform had no minimum guarantee or fixed payout commitments.
- Global Presence: OYO operates in over 35 countries, with its core markets being India, South East Asia, and Europe. These regions contribute more than 90% of OYO’s storefronts globally.
- Revenue Generation: The company earns revenue through a revenue-sharing model, taking 20% to 35% of the gross booking value (GBV). Additionally, it offers subscription-based listing services for Patrons.
Financial Performance (FY 2021-2024)
OYO’s financials indicate a positive trajectory toward profitability:
| Key Metrics | FY21 | FY22 | FY23 | FY24 |
|---|---|---|---|---|
| Revenue from Operations (₹ Cr) | 3,900 | 4,700 | 5,602 | 5,389 |
| Adjusted EBITDA (₹ Cr) | -1,700 | -470 | -374 | 708 |
| Gross Booking Value (₹ Cr) | 6,600 | 8,100 | N/A | N/A |
| Net Loss (₹ Cr) | N/A | N/A | Reduced by 34% | Increase by 146% |
OYO IPO and Future Prospects
OYO’s IPO, anticipated in 2024, is expected to create significant buzz in the market. Recent Series G funding rounds raised ₹1,457 crore at ₹30 per share, boosting OYO’s valuation to approximately $3.65 billion. Key developments to watch include:
- Focus on Sustainable Growth: OYO is shifting its focus from rapid expansion to profitability, as evidenced by its improving EBITDA and reduced losses.
- Expansion in Key Markets: The company has launched 10 Palette Resorts in major cities, with plans to add 40 more by Q2 FY24. This strategic move aims to capture a premium market segment.
- Ritesh Agarwal’s Investment: OYO’s founder, Ritesh Agarwal, has invested an additional ₹550 crore, signaling confidence in the company’s growth potential.
OYO Share Price Forecast for 2025 and Beyond
As OYO gears up for its IPO and continues to streamline operations, here are the share price predictions based on its growth trajectory:
2025 Prediction
- Minimum Price: ₹75
- Maximum Price: ₹110
2030 Prediction
- Minimum Price: ₹150
- Maximum Price: ₹200
These estimates consider OYO’s potential to increase revenue, reduce operational costs, and expand its presence in core markets.
Comparison with Competitors
While OYO remains a leader in India’s hospitality tech sector, competitors like Treebo and FabHotels focus on niche markets. However, OYO’s robust technology platform and global footprint give it a competitive edge. Observers often compare OYO’s valuation and growth potential to Airbnb and other global players in the short-stay accommodation space.
Risks and Challenges
- High Debt Levels: OYO’s debt-to-equity ratio of 4 indicates significant leverage, which may pose risks during economic downturns.
- Market Competition: The hospitality sector is highly competitive, with several emerging players targeting similar markets.
- Liquidity Risks: Investing in OYO unlisted shares comes with liquidity constraints, as these shares are not traded on public stock exchanges.
How to Invest in OYO Unlisted Shares
Investors can buy or sell OYO’s unlisted shares through platforms like UnlistedZone. The minimum ticket size ranges from ₹35,000 to ₹50,000. Key steps include completing KYC, transferring funds, and ensuring compliance with SEBI regulations.
