Toyam Sports Ltd. - Riding the sport boom!

Toyam Sports Ltd ( formerly toyam industries) caught my eye over a year ago. The company is engaged in sports promotion activities and operates 2 verticals, primarily cricket and MMA.

They have acquired the Rajwada cricket league and a couple of others in Africa (Kenya, Tanzania). And recently conducted the Tanzania T20 league with support from sky exchange which is a major cricket backer. This is a start up type investment for me. The company has no great revenue (it did 1 cr last fy) or profitability today. But once the events start firing I expect major changes. Being a league owner you have all the IPl type benefits in terms of team auctions and broadcasting rights. Toyam was also title associate sponsor in the recent road safety series which India veterans won. Rajwada cricket league will happen early next year. I believe if they execute well sky is the limit in the cricket business.

This is the reason that drew me to Toyam as i am a huge fan of mixed martial arts having trained personally and have a desire to see the sport flourish in india. Toyams Kumite 1 League, is the premier mma league and are selling their merchandise on Amazon. They have an upcoming reality show called warrior hunt coming up on mx player. Thums up and SAT sports were the major sponsors. I attended the event live and it looked like a ufc type spectacle. Apparently this has been confirmed as a repeat business as both MX player and the sponsors are very happy with the product.

As mentioned the company has very little revenue and profitability at present. Though there has been significant growth in both metrics in FY 22. To its advantage the company is debt free. This is more of a start up type of investment in the listed space. I have been tracking this company from mid 2021 so I cannot comment on earlier numbers below, however being a sport promotion company they were hampered by covid as they could not do events. I have obtained the numbers from trendlyne.

FY 22 2.6 cr. PAT 1.1 cr
FY 21 4.8. (30l)
FY 20. 2.1. .1
FY 19. 2.3. ()

Risk Analysis
This kind of counter is considered a penny stock. I am a high risk taker and have invested lower than CMP, and only invest long term (3 years) for multiples. I believe the business of cricket and mma have a multi year boom and toyam is well postioned to execute events being league owners. The release of their debut event “warrior hunt” on MX player should demonstrate their execution capability. There is no promoter group but a ESOP model in place for the top management. Besides Chennai super Kings, I don’t see any listed sport company on the exchanges.

Disclosure - I am invested in this company. Pls do your own due diligence. I am not SEBI registered.

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