Company Snapshots

• Incorporated on April 24, 2008, DreamFolks Services Ltd is India’s largest airport service aggregator platform.
• Facilitating an enhanced airport experience to passengers leveraging a technology-driven platform.
• The company facilitates access to airport-related services such as lounge, food & beverages, spa, pick up and drop service.
• 82 Lakhs passengers used the lounge service in 2023
• 500 cities covered in India
• 120+ countries covered for the lounge access
• 100% lounge coverage across Indian airport
• Company has 97% market share in Card based lounge access in India which becomes a monopoly stock
  
• 68% share of the overall lounge access volume in India

Share Price

• Company listed its IPO on 6 September 2022 & listed with a strong 56 percent gains
• The stock opened at Rs 505 on the BSE, against issue price of Rs 326, and the opening tick on the NSE was Rs 508.70.

Dreamfolks Services Share Price down by 37%

• Company made a all time high of 847 on July 2023
• As on today, 15 May 2024 share price is down by 37% reaching it to a level of 507

Products or Services offered

Dreamfolks facilitates access to the following airport-related services

1. lounge
2. food and beverage
3. spa & wellness
4. meet and assist
5.  airport transfer
6.  transit hotels /nap room acces
7. Golf Games & Lessons
8. Visa services
9.  E-Sim.

Clients & Network Provider

Company has tie-ups with all the 4 Card Networks operating in India

1. Visa
2. Mastercard
3. Diner/ Discover
4. Rupay

Further, some of India’s largest Card Issuers are also among the company’s key clients (Top 5 largest banks in India)

1. ICICI Bank Limited
2. Axis Bank Limited
3. Kotak Mahindra Bank Limited
4. HDFC Bank Limited
5. SBI Cards Payment Services Limited

In addition, company has tie-ups with some of India’s prominent corporates including airline companies, telecommunications companies, OTA, loyalty aggregators

1. Indigo
2. Go Airlines Limited
3. Air Asia (India) Limited
4. Vodafone Idea Limited
5. Jet Privilege Private Limited
6. Hettich India Private Limited
7. Easy Trip Planners Limited
8. Mahindra Holidays and Resorts India Limited

Revenue Mix

• Company is heavily reliant on a few clients and derives a significant part of its revenue from lounge access-related services from select Clients.
• Its top 5 Clients contributed 84.91% of its total revenue from operations during FYs 2022, 2021, and 2020.
• DreamFolks has collaborated with VFS Global, the world’s largest travel visa facilitator for travellers worldwide

Segment Break up

Verticals

Key Ratios

Shareholding Pattern

Change In Shareholding Pattern

1. Promoters: Their ownership percentage decreased from 67.00% to 66.02%, indicating a slight reduction (-0.98%) in their stake in the company or market. This might suggest a possible divestment or dilution of their shares.
2. FIIs (Foreign Institutional Investors): Their ownership percentage experienced a significant decrease from 11.78% to 5.35%, marking a substantial decline (-6.43%) in their stake. This could indicate a loss of confidence among foreign investors, possibly due to economic or political uncertainties.
3. DIIs (Domestic Institutional Investors): Their ownership percentage increased from 7.08% to 8.02%, showing a modest rise (0.94%) in their stake. This suggests growing interest or investment from domestic institutional investors, possibly due to favorable market conditions or company performance.
4. Public: The ownership percentage of the public increased notably from 14.15% to 20.61%, indicating a substantial growth (6.46%) in public participation or retail investment in the company or market. This could reflect increased market liquidity or a broader investor base.

Financial Trend (All values in Crore)

• Revenue:

  Revenue in March 2020: 367 Crore

  Revenue in March 2024: 1,092 Crore

  So, the revenue increased by approximately 197.56% from March 2020 to March 2024.

• Net Profit:

  Net Profit in March 2020: 32 Crore

  Net Profit in March 2024: 77 Crore

  So, the net profit increased by approximately 140.63% from March 2020 to March 2024.

Company Valuation

• Current PE- 34.5, which is less than the Industry PE -38.8
• PEG ratio is 0.79 (PEG ratio less than 1 considered as undervalued company
• Median PE -39.6 (Red Line)  & Current PE-34.5 (Blue Line) , as the current PE is less than median PE
• From above points we can say that company is undervalued

Should You Invest ?

• As the company has 97% market share at airport which makes a monopoly stock in this sector
• The number of operational airports in the country has doubled from 74 in 2014 to 148 in April 2023, which has positively impacted the company’s growth
• Dreakfolks services is currently undervalued company
• Share price is down by 37% from its all time high so it is a great opportunity to invest in such companies
• Always think of the long term while investing in such kind of stocks, in future it has immense growth potential

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