A “Market Leader” is a company with the largest market share in an industry that can affect the competitive landscape and direction of the market due to its dominance in the same.
Listed below is a market leader stock that one should add to their watchlist for a potential upside of more than 25 percent:
Dreamfolks Services Limited
With a market capitalization of Rs 2,688.15 crores, the stocks of Dreamfolks Services Limited started their trading session on Friday at Rs 507.95 and currently trade at Rs 509.70, gaining approximately 2 percent as compared to the previous closing levels of Rs 499.80 apiece.
Dreamfolks Services Limited is India’s leading airport services aggregator and tech platform holding more than 75 percent market share in “Domestic Airport Lounges” and being the sole player with 100 percent coverage of airport lounges.
Having a glance at the company’s recent financial reports, the basic business parameters including its operating revenues as well as after-tax profits were on the rise consistently.
The former recently increased from Rs 282 crores during the September 2023 quarter to Rs 305 crores, and the latter, keeping the timeframe the same, rose marginally from Rs 18 crores to Rs 20 crores.
Due to the market leader status, the company’s consolidated return ratios, in FY23, were reported at healthy numbers with the return on equity (RoE) at 46.28 percent and the return on capital employed (RoCE) at a whopping 59.25 percent.
Having a positive outlook for the company, Motilal Oswal, one of the well-known Brokerage firms based in India, gave a ‘Buy’ recommendation on the company’s stock with a target price of Rs 650, indicating a potential upside of 27.40 percent compared to the prevailing stock price level.
The rationale for providing such a recommendation pertains to the benefits of the company due to the rapid growth in the Indian airline industry, followed by rising leisure travel, competitive fares, new airports, and government push. Further, the increasing adoption of Bank cards is boosting the pay-per-use revenue model of the company.
Dreamfolks Services Limited provides airport service in India and internationally. The company offers lounge access, food and beverage, spa, meet and assist, airport transfer, transit hotels and nap room access, and other services. Dreamfolks Services Limited was incorporated in 2008 and is based in New Delhi, India.
Written by Amit Madnani
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