Dreamfolks announces Q1 results on listing day, posts Rs 13.4 crore profit

Dreamfolks Services on Tuesday declared financial results for the first quarter that ended June 2022 (Q1 FY23) during its first trading session. The country's largest airport service aggregator posted a consolidated net profit of Rs 13.4 crore as compared to a loss of Rs 1.38 crore in the same period last year.

Dreamfolks had reported a profit of Rs 8.98 crore in the Q4 of FY22.

The company's revenue from operations in the June quarter of this financial year climbed to Rs 160.2 crore from Rs 24.5 crore in Q1 FY22.

Earlier in the day, Dreamfolks shares made a strong market debut, listing at a premium of 55 per cent over its initial public offering (IPO) price of Rs 326 (upper band). The initial share sale of the airport service aggregator was subscribed 56.68 times last month.

The stock got listed at Rs 505 on the BSE index. On NSE, the scrip started trading at Rs 508.70.

The shares witnessed some profit booking after listing with strong gains. It finally settled at Rs 462.65, up 41.92 per cent over its issue price.

Commenting on the robust market listing, founder & managing director, Dreamfolks, Liberatha Kallat told Business Today that there was a robust moat in the company.

“Dreamfolks is the solution that we have built. We also have exclusive lounge contracts and strong relationships built over the past nine years. There’s a complete moat!”

Analysts on Dalal Street hold mixed on DreamFolks shares post listing.

"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.

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.

Dreamfolks enjoys a 95 per cent market share in the airport lounge business.