Its more about management bandwidth. Trying to do too many things take away focus from their core business. This is my primary concern about unrelated expansions where none of their core strengths can be leveraged.
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Itâs the same business. Just on roadways. How does it matter.
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i agree⌠but the companyâs has thrived on doing new stuff and some click some dont⌠thats the way they do businessâŚ
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Who will pay for this facility? Same card issuers ?
Clearly a bad news for the company
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True. This business is completely disrupted, Adani being largest airport operator. Others airport operator like GMR may follow suite soon.
While the services has been restored and contract seems to be in place. the company is going to face tough times if Adani has started getting into their territory⌠now it is anybodys guess whether to stay invested or exit.
Honestly I latched here, coz it was promising growth.
But now I feel, business doesnât have no barriers to entry.
They command market share, but the premises belong to other players, they can directly operate with banks cutting dreamfolks gradually as middle man. If they find the business attractive.
Itâs a confusing state, but I wonder what does MOTilal oswal know, they keep on increasing stake quarter after quarter
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I wonder if the business has longevity, they airport operators can gradually cut aside dreamfolks and operate with card issuers directly once existing contracts come to expiry , in a phased manner.
Banks/card network may not comfortable to deal with too many airport operators as most of the power would be the airport operator.
In the current scenario banks need to deal with 1 or 2 major aggregators and the power is with the banks.
Management had answer this in the Conall of Q1FY25, by saying, DFS is a channel partner for Adani-owned lounges. So, Adani is not directly becomes a competitor for them.
Honestly I am not convinced, as Adani One ICICI Credit Card offering low annual fee than DFS Membership fee.
As DFS is diversifying its business services, only time will tell.
Disc: Holding Very small Amount of Shares for Long.
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