DreamFolks Services Listing: Here’s what to do with DreamFolks shares post 55% listing gains
Shares of DreamFolks witnessed some profit booking after listing at around 55 per cent premium on Tuesday on the domestic stock exchange. The scrip traded at Rs 477.55 at around 12.20 pm (IST) against the issue price of Rs 326. Earlier, it got listed at Rs 505 on the BSE and at Rs 508.70 on the National Stock Exchange.
Dreamfolks Services is a dominant player and India’s largest airport service aggregator platform facilitating an enhanced airport experience to passengers leveraging a technology-driven platform. Analysts on Dalal Street hold mixed on DreamFolks shares post listing. Here’s what they have to say.
“The company’s superb listing can be attributed to positive market sentiments, bright future prospects, and a phenomenal response from investors. The Indian aviation industry is at the cusp of exponential growth in the next two decades due to its demographic advantages, the potential growth in middle-class income, rising business travel, reduced cost of air travel and increased travel in Tier-2 and Tier-3 destinations, said Santosh Meena, Head of Research, Swastika Investmart.
“The company will be one of the biggest beneficiaries of the rising air travel in India and due to its first mover advantage and dominant position in the lounge access market, the company is poised to grow exponentially in the future. The issue was richly priced at a P/E of 104.82 based on annualised FY22 numbers and the promoters have diluted 33 per cent of their stake in the offer for sale. Those who applied for listing gains can maintain a stop loss of Rs 457. Only long-term investors with a moderate to high-risk appetite should enter post-listing,” Meena added.
“The company follows an asset-light business model that integrates global card networks in India, card issuers and other corporate clients in India, including airline companies with various airport lounge operators and other airport-related service providers on a unified technology platform. DreamFolks facilitates the customers of its clients to access the airport-related services such as lounge, food & beverages, spa, pick up and drop service amongst others. Post listing, the stock is trading at 150.46 times FY22 PE which leaves little room for upside. Hence, Angel One recommends booking profits,” said Amarjeet Maurya, AVP-Mid Caps, Angel One.
Ravi Singhal, CEO, GCL Securities said, “Long-term investors should keep investing with a stop loss of Rs 350 and a target price of Rs 700 or more in the next year.
“It is better to take away listing gains from the table and track performance rather than have a long-term perspective at the time of listing,” said Ketan Sonalkar, Head of research, Univest.
