Thread by @MarketLearner_

DreamFolks #IPO📊

What does company do?
What's the key strength & Weakness?
Should you apply?

#StockMarket #investing #Investment

@mystock_myview @KommawarSwapnil @kuttrapali26 @harrie007 @TheFactFindr @connectgurmeet @SmartSyncServ @abhymurarka @AdeptMarket @FaviloF

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Contents🔖

👉Company Overview
👉Objectives of the Issue
👉Sector Analysis
👉Investment Rationale
👉Management Analysis
👉Valuation
👉Key Risks

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Lets start with Company Overview🏬🏬

👉Dreamfolks is an end-to-end technology solutions provider offering services like

- Lounge access
- Food & Beverage offerings
- Spa services
- Meet & Assist
- Airport transfer services
- Transit hotel & Nap room access
- Baggage transfers

& others.

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👉These services are provided door-step to the airport, within the airport & again from the airport to the door-step at the destination.

👉The company has a first mover advantage in the airport lounge & aggregator industry.

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👉Company has tie up with all 5 card networks in India including Visa, Mastercard, Diners/Discovery & RuPay.

👉Company also has tie ups with India's largest card issuers such as HDFC Bank, Kotak Mahindra Bank amongst others.

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Now, lets have a look at the objectives of the issue🎯🎯

👉To carry out an offer for sale.

👉To realize the listing benefits of equity shares on the stock exchange.

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Now, lets do sector analysis🏫🏫

👉India currently has the lowest travel propensity vs western countries. However, we are expected to be the world's third largest air travel market by 2030.

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👉The domestic market is expected to grow at a CAGR of 14% & the international market is expected to grow at a CAGR of 15% in the long term.

👉The number of airport lounges in India is expected to grow at a CAGR of 7% till 2040.

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Now, lets look at the Investment Rationale🤑🤑

👉Dominant Player :- Has coverage of 100% of airport lounges in India. Holds a 95% market share of all India issued credit card & debit card (Card Based) access to airport lounges & accounted for around 68% of the overall lounge access volume in India in 2022.

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👉Asset light business model :- So scaling up business requires minimum capital deployment leading to a higher operating leverage. The business is also not very human resource intensive.

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Now, lets analyze the company's management👨‍💻👨‍💻

👉Ms. Liberatha Kallat, Chairperson & Managing Director has over 2 decades of experiences in the hospitality sector & has previously worked with Taj GVK Hotels & Resorts Ltd, PepsiCo. India, Premium port lounge & Pernod Richard.

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👉Mr. Balaji Srinivasan, Chief Technical Officer & Executive Director earlier held positions at Genpact India Private Limited & a start-up venture called FarEye.

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👉Ms. Giya Diwaan, Chief Financial Officer is a chartered accountant & an IIM Lucknow alumnus. Earlier associated with Times Internet, Musafir . com, Awfis, Itz Cash Card & Resources Global Professionals.

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Now, lets have a look at the valuations💰💰

👉The company does not have a listed peer currently in the Indian stock exchanges.

👉The post issue P/E works out to be 104.8x FY22 EPS which looks aggressively priced & expensive.

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Now, lets have a look at the key risks involved🔴🔴

👉The company's operations are heavily dependent on the travel industry & in particular the airport travel industry.

👉The company is at risk of airport lounge operators forward integrating & tying up directly with card networks & issuers thus impacting the business.

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👉Company is heavily reliant on relationship with card networks, issuers, financial institutions & airport lounge operators.

👉Company is heavily reliant on top customers. Top 5 contributing 84.91% to the revenue.

👉Company faces threat from privatization of airports.

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I hope my thread helped you in knowing DreamFolks IPO better than before. Please don't forget to join our telegram channel its absolutely FREE & we are doing a lot of hard work here. telegram.me/TheMarketLearn…

Thanks for reading,
The Market Learner.