Dreamfolks Services: Dreamfolks on route to revival, but it’s best to wait & watch

In FY22, revenue from operations fell to ₹282.4 crore from ₹367 crore in FY20 amid the pandemic. In the same period, the company’s net profit fell to ₹16.6 crore from ₹31.3 crore.

Synopsis

Considering FY22 earnings, the company demands a price-earnings (P/E) multiple of 105. It has no listed peers. Given the size of its operations, valuation appears to be steep though skewed by a sharp fall in the profit due to the pandemic. Considering the pre-pandemic profit level, the P/E works out to be around 55.

ET Intelligence Group: Dreamfolks Services, a provider of lounge and other services related to travelling by air, plans to raise up to ₹562 crore through an offer for sale by promoters. After the issue, the promoter stake will fall to 67% from 100%. A dominant market share, asset-light business model and strong tie-ups with payment card issuers are a few strengths of the company whose revenue growth is directly linked to the demand for travel by

BY

ET Bureau

3 mins read, Last Updated:

Aug 24, 2022, 06:26 AM IST

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