With airlines gradually resuming services in the post-COVID era, it’s a question on many investors’ minds: Can the share price of companies like DreamFolks, which provide airport-related services, surpass the significant milestone of 750? In this article, we’ll take a closer look at the factors influencing share prices in the wake of the pandemic and explore the potential for companies like DreamFolks to soar to new heights in the evolving travel and airport service landscape.
About Dreamfolks Services
DreamFolks Services Limited, founded in 2013 and headquartered in Gurugram, is your go-to companion in the world of airport services. This Indian gem has been at the forefront of redefining how we experience travel through its tech-driven platform.
Initially, it was the brainchild of its dedicated promoters, Liberatha Peter Kallat and Dinesh Nagpal, who each held a 33% share, while Mukesh Yadav owned the remaining 34%. But they decided to share the dream and took it public on the Indian stock exchange on September 6, 2022, opening up exciting new possibilities for everyone.
Back in July 2021, DreamFolks was already a force to be reckoned with, holding an impressive 90% market share in India and extending its reach to 140 countries worldwide
As of FY22, DreamFolks proudly served 50 clients, including renowned card networks and prominent card issuers in India. Their dedication to quality has led to 9.79 million passengers availing their services since FY20, highlighting their widespread appeal and industry recognition.
DreamFolks isn’t just another company; it’s a game-changer in the airport services sector. They make your travel experience seamless by offering:
- Lounges: Relax and rejuvenate in style.
- Food and Beverage: Savor delightful cuisine.
- Spa: Pamper yourself before your flight.
- Meet and Assist: Get personalized support.
- Airport Transfer: Hassle-free transportation.
- Transit Hotels / Nap Room Access: A comfortable escape.
- Baggage Transfer: Worry-free luggage handling.
Q1 FY 2024 Key Points And Summary:
- Revenue Growth: DreamFolks Services Limited achieved a remarkable 66% Year-over-Year (YoY) growth in revenue during Q1 FY24.
- Gross Profit: The company’s gross profit for the quarter reached Rs. 28.4 crores, reflecting its robust financial performance.
- Growth Projection: DreamFolks is optimistic about its future performance, with expectations of a top-line growth ranging between 55% to 60% for the entire financial year.
- Expanding Customer Base: In Q1 FY24, DreamFolks provided lounge access and various ancillary services to 2.6 million passengers, showcasing an impressive 44% YoY growth in this segment.
- Interim Dividend: The Board of Directors has recommended an interim dividend of Rs. 0.50 per share, providing returns to shareholders.
- Healthy Cash Balance: DreamFolks maintained a healthy cash balance of Rs. 82 crore as of Q1, ensuring financial stability.
- Margin Expectations: While the company anticipates continued growth, it also recognizes the impact of cost escalations and investments in human capital. As a result, margins are projected to range from 11% to 13%.
Industry trends
The travel and tourism industry is making a strong comeback, and this is pretty exciting news for DreamFolks Services Limited. People are itching to travel again, and that means more folks are looking for the cool airport services DreamFolks offers.
Domestic air travel is back, and it’s even surpassed the levels we saw before the pandemic. This means DreamFolks is in high demand because more travelers are hopping on flights and wanting those nifty airport services.
Now, here’s something interesting: India’s aviation industry is on a steady growth path, projected at a 5.8% annual growth rate for the next couple of decades. That’s a lot of airports and a lot of travelers, and it’s fantastic news for DreamFolks because they could expand their reach further.
And finally, India’s credit card industry is booming, and it’s predicted that we’ll see over 10 crores of credit cards by 2024. What’s cool is that people with credit cards often love premium airport services, like what DreamFolks provides. So, there’s a broader customer base they can cater to.
In a nutshell, with travel on the rise, the aviation industry growing steadily, and more credit cards in people’s wallets, DreamFolks is in a great position to keep rockin’ the airport services game.
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| When | Maximum Price | Minimum Price |
| October 2023 | ₹526.82 | ₹448.02 |
| November 2023 | ₹536.30 | ₹478.45 |
| December 2023 | ₹543.67 | ₹494.24 |
In 2023, it is expected that the highest price will be ₹543.67 in December, and the lowest will be ₹368 in January.
In October, 2023, Dreamfolks is expected to trade in between ₹526.82 and ₹448.02.
Therefore, December is expected to have the most expensive price, and January is expected to have the cheapest in this year.
YTD, the Dreamfolks share has went up by 34.74%. As of 29th September, 2023, Dreamfolks is trading at Rs. 496.40 with a marketcap of Rs. 2630 Crore with a PE ratio of 37.69.
| When | Maximum Price | Minimum Price |
| January 2024 | ₹554.76 | ₹482.40 |
| February 2024 | ₹566.08 | ₹492.25 |
| March 2024 | ₹577.63 | ₹502.29 |
| April 2024 | ₹560.81 | ₹487.66 |
| May 2024 | ₹552.52 | ₹480.45 |
| June 2024 | ₹572.41 | ₹497.75 |
| July 2024 | ₹566.69 | ₹492.77 |
| August 2024 | ₹589.36 | ₹512.48 |
| September 2024 | ₹612.93 | ₹532.98 |
| October 2024 | ₹600.91 | ₹522.53 |
| November 2024 | ₹618.94 | ₹538.21 |
| December 2024 | ₹634.41 | ₹551.66 |
In the year 2024, we are expected to witness a consistent upward trend in prices. Starting with a maximum price of ₹554.76 in January and a minimum of ₹482.40, prices are expected to steadily increase month by month, reaching their peak in December at ₹634.41 (maximum) and ₹551.66 (minimum).
These trends are indicative of an expectation of continued price increases in the upcoming months, emphasizing the importance of monitoring market dynamics for anyone expected to be impacted by these price fluctuations.
| when | Maximum Price | Minimum Price |
| January 2025 | ₹647.10 | ₹497.77 |
| February 2025 | ₹663.69 | ₹510.53 |
| March 2025 | ₹689.58 | ₹530.45 |
| April 2025 | ₹676.06 | ₹520.04 |
| May 2025 | ₹656.37 | ₹504.90 |
| June 2025 | ₹685.90 | ₹527.62 |
| July 2025 | ₹672.45 | ₹517.27 |
| August 2025 | ₹693.25 | ₹533.27 |
| September 2025 | ₹717.52 | ₹551.93 |
| October 2025 | ₹736.17 | ₹566.29 |
| November 2025 | ₹754.58 | ₹580.44 |
| December 2025 | ₹773.44 | ₹594.95 |
In 2025, prices are expected to rise throughout the year. It is expected to all begin with the highest price of ₹647.10 in January and the lowest at ₹497.77. And then, it is expected that each month, prices will keep going higher. By December, it is expected that they will reach their peak at ₹773.44 (highest) and ₹594.95 (lowest).
This steady climb in prices is expected to happen because of how the market is expected to work and what people are expected to be looking for. So, it is expected that prices will probably keep rising in the next few months in 2025.
| Year | Maximum Price (₹) | Minimum Price (₹) |
|---|---|---|
| 2026 | ₹812.11 | ₹568.48 |
| 2027 | ₹893.32 | ₹625.33 |
| 2028 | ₹1,250.65 | ₹625.33 |
| 2029 | ₹1,082.82 | ₹541.41 |
| 2030 | ₹1,407.66 | ₹985.36 |
From 2026 to 2030, prices are expected to continue their upward trajectory. It all begins in 2026, with the highest expected price at ₹812.11 and the lowest expected at ₹568.48. The following year, in 2027, prices are expected to rise even higher, with a maximum expectation of ₹893.32 and a minimum expectation of ₹625.33. The trend doesn’t stop there; in 2028, prices are anticipated to surge to a peak of ₹1,250.65, while the minimum expectation remains at ₹625.33. Finally, by 2030, prices are expected to reach their highest point at ₹1,407.66 (maximum expectation) and ₹985.36 (minimum expectation).
These consistent price hikes are likely due to market conditions and demand, suggesting that we can anticipate prices to keep rising in the years ahead.
Dreamfolks Services Financial Condition (Last 5 Years)
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | |
| Sales + (In Crore INR) |
248 | 367 | 106 | 282 | 773 |
| Expenses + (In Crore INR) |
225 | 322 | 106 | 260 | 674 |
| Operating Profit (In Crore INR) |
23 | 45 | 0 | 23 | 99 |
| OPM % | 9% | 12% | 0% | 8% | 13% |
| Other Income + (In Crore INR) | 0 | 1 | 2 | 1 | 3 |
| Interest (In Crore INR) |
0 | 1 | 1 | 1 | 1 |
| Depreciation (In Crore INR) |
1 | 2 | 2 | 2 | 4 |
| Profit before tax (In Crore INR) |
22 | 44 | 0 | 20 | 97 |
| Tax % | 30% | 27% | -625% | 21% | 26% |
| Net Profit + (In Crore INR) |
15 | 32 | -1 | 16 | 73 |
| EPS in Rs | 32.15 | 66.69 | -3.05 | 3.11 | 13.89 |
| Dividend Payout % | 0% | 0% | 0% | 0% | 0% |
Over the past five years, the company’s financial performance has been notable. Sales saw strong growth, going from 248 in March 2019 to 773 in March 2023. Expenses also increased during this period, rising from 225 to 674. However, the company effectively improved its operating profit from 23 to 99, with an operating profit margin reaching 13% in March 2023.
Furthermore, earnings per share (EPS) showed positive progress, growing from 32.15 in March 2019 to 13.89 in March 2023. Despite some fluctuations in tax percentages, overall profitability improved, with the company achieving a net profit of 73 in March 2023. Throughout this period, the company retained its earnings, as indicated by the 0% dividend payout, suggesting a focus on reinvestment for growth.
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FAQs
What is the market capitalization of DreamFolks Services Limited?
The market capitalization of DreamFolks Services Limited is ₹2,563 crore.
What is DreamFolks Services Limited’s Return on Equity (ROE)?
DreamFolks Services Limited’s Return on Equity (ROE) is 60.2%.
What is DreamFolks’ Price-to-Earnings (P/E) ratio?
The Price-to-Earnings (P/E) ratio for DreamFolks is 35.5, and the median P/E for the company is 47.0.
In 2024, the maximum share price target was ₹634.41 in December, while the minimum was ₹480.45 in May.
The share price target for 2030 is expected to reach ₹1,407.66.
Should One Invest In Dreamfolks Services?
When you’re thinking about investing in this company, here’s what you should know. On the good side, the company is in pretty good financial shape with hardly any debt. It’s expected to do well in the near future, and it’s been making more and more money over the past five years, which is a good sign.
Also, the company has been good at giving back to its shareholders with a strong return on equity (ROE) track record. They have this cool technology platform that makes things easy for customers, and they’re different from others because they put lounge benefits right in your bank app instead of making you use different cards or apps.
But, there are some things to watch out for. The stock is pretty expensive right now compared to its book value, which might mean it’s overpriced. The stock’s price has been up and down in the past year, so it could be a bit of a bumpy ride. If you’re looking for regular income from your investment, the company’s low dividend might not be what you’re after.
So, before you decide, think about your own money goals, how much risk you’re comfortable with, and what kind of investments you already have.
What did we learn?
- 1 About Dreamfolks Services
- 2 Q1 FY 2024 Key Points And Summary:
- 3 Industry trends
- 4 How to purchase Dreamfolks Services shares?
- 5 Dreamfolks Services Share Price Target 2023 To 2030
- 6 Dreamfolks Services Financial Condition (Last 5 Years)
- 7 FAQs
- 7.1 What is the market capitalization of DreamFolks Services Limited?
- 7.2 What is DreamFolks Services Limited’s Return on Equity (ROE)?
- 7.3 What is DreamFolks’ Price-to-Earnings (P/E) ratio?
- 7.4 What Is The Target Share Price For Dreamfolks Service By 2025?
- 7.5 What Is The Target Share Price For Dreamfolks Service By 2030?
- 8 Should One Invest In Dreamfolks Services?
