I fail to understand why OYO valuations are falling. Travel and hospitality sectors are doing extremely well with strong pricing power and better margins. OYO itself has turned around in FY24. As per some reports Q4 PAT was 100cr and with the existing FCY loans being refinanced at 500 bps lower, there is a interest saving of 100-120cr each year. If the company continues this momentum assisted by tailwinds in the sector, FY25 will be even more spectacular. However valuations seem to be going in the other direction. I personally feel its a good time to accumulate. Delay in IPO should be seen as good news by pre IPO investors wanting to accumulate more during this fall. OYO with better earnings will eventually command better valuations when it comes to the market. Unless there is some hidden issue or fraud that only a few with insider information are privy to, really cant fathom the drop in valuations. At times markets do temporarily misprice an asset, hope its that case and eventually earnings will drive valuations!
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