Oyo Room’s parent company Oravel stage shares climbed 26% last month without a listing. This hotel company of Gurugram is preparing to bring the IPO soon. Its shares are trading at Rs 53, which had earlier fallen to Rs 33 and reached 83 rupees. On August 25, there was a rise of 19% in a day, when the news came that the company could file the paper for the IPO soon.
Oyo’s performance was better than the rest of the hotel companies such as Lemon Tree (21%), Chalet Hotels (17%), EIH (9%), and Indian Hotels (4%). The Nifty Tourism Index rose just 2%. According to the ET report, Prashant Tapse of Mehta Equality says that the IPO news, the 200 million profit in the first quarter, and the 1: 1 bonus share possibility gave the stock boost.
Oyo, with a softbank support, earned a profit of 87 crore to 200 crores in Q1Fy26. Revenue increased 47% to 2,019 crore. The booking value reached 7,227 crore, which shows a growth of 144%. Vineet Bolinjkar of Ventura Securities says that Oyo’s asset-light model puts it ahead of the rest.
Shares valuation
Tapse gets a high price of Rs 53, while Bolinjkar considers it right. P/E ratio is 150-160. Tapse says that a valuation of $ 7-8 billion is more than the rest of the hotel companies, Oyo’s take-based, global model justifies it. Bolinjkar estimates that by FY28, revenue will be 9,500 crore and profit margin will be 11%.
Prashant Tapse said that the company wants to wait till the IPO road show starts and says that it is too early to guess the direction of non -listed shares. Although the company has registered more than 2 times PAT growth in the first quarter, Bolinjkar warned investors about the PAT less than the average of 6.6% of Oyo in FY 2025, which is less than 15–20% of the market’s average market.