Completely agree with @ORION that the card issuers will definetly provide with some free incentives to attract customer to their cards and as we are seeing that the premiumization trend is playing well it all depends upon how dreamfolks is able to cash that and be an aggreagtor for that partcular service (be it salon,golf,spa etc)
Motilal Oswal Focused Fund bought 461912 shares of Dream in the month of Oct 2023…
Moderator may delete this post if thinks it doesn’t add any value…
I am quite surprised that Dreamfolks has not yet suggested a Rs 50 convenience fee in the structure. Since the differential of Rs 2 and Rs 300-500 for food is huge, people will still pay. Banks can still call it free. This will address the margin which Dreamfolks has lost.
Disclosure - Invested and optimistic of growth since the potential due to new lounges, new airport, stations is huge.
Dreamfolks removed from the MSCI Global SmallCap Index
Stock up 8%.
Divergence on its peak.
This is just because of the increase in market cap right as stock price is increased.
Can we infer some insights from it?Positive or Negative sentiment
Pls let me know just to clear my doubt
Addition of the company to MSCI index was decided on 10th August. Since then the stock price is still the same, so it is not due to that.
I see it as highly negative news, since there are going to be outflows from December 1 onwards.
Disclaimer: Invested, due to FOMO of growth in Airport lounges/Credit cards/Premium Services
Dreamfolks partners with Grey Wall (Russia):-
In my opinion Growth will come from the uptick in the conversion rate of passengers, which is around 7.3% in Q2 and It was 6.2% in Q4FY23. They supposed to close some international deals, which will boost the growth at an exponential rate as it will add pax.
Over all on bearish case i am confident about their 20-30% growth, margins may improve slowly on QoQ basis as volumes increase.
I think this Quarter numbers will show whether any effect of this policy changes are reflecting on the numbers or not
I partially agree with your view but now a days every one has multiple credit cards, if HDFC pull back this lounge access program then people will use other bank cards. On the other hand, so many debit cards also has lounge access program with AMC of ~500.
Even though management is also cautious about the immediate growth, i feel that there won’t be any much impact on pax numbers going forward.