Synopsis: Dreamfolks Services jumped by 16% after it announced the acquisition of a 50.01% stake in Ten 11 Hospitality LLP for Rs 11.46 crore, further deepening its presence in the railway lounge sector.
The shares of this leading lounge services provider are in focus after it made a significant acquisition that might add significant long-term value in the company’s supply chain. In this article, we will dive more into the details.
With a market capitalization of Rs 710 crore, the shares of Dreamfolks Services Ltd reached a day’s high of Rs 140.42 per share, up 16 percent from its day’s low price of Rs 121.38 per share. In the last one year, the stock has corrected by over 70 percent, as compared to NIFTY 50’s positive return of 6 percent.
About the Announcement
Dreamfolks Services announced that it has acquired a 50.01 percent stake in Ten 11 Hospitality LLP for Rs 11.46 crore. As such, the firm is now a subsidiary of the company. The agreement will be finalized in less than 15 days, and the entire amount will be paid in cash via online banking channels.
Ten 11 Hospitality LLP is a company engaged in the hospitality business, primarily through the operation and management of premium lounges all over India. The company earned a total revenue of Rs 8.66 crore in FY25, which is significantly higher than Rs 2.15 crore in FY24 and Rs 0.6 crore in FY23.
With this acquisition, Dreamfolks plans to enhance and broaden its railway lounge operations by collaborating with one of its main service providers. The initiative will enable Dreamfolks to have tangible assets and the necessary infrastructure at the major railway stations, making it possible for the company to grow within the railway hospitality sector.
Financial and Other Highlights
The company’s revenue for Q1 FY26 was Rs 349 crore, representing a 9 percent increase from Rs 321 crore in the same quarter last year. Regarding its profitability, the company reported a 24 percent net profit growth to Rs 21 crore in Q1 FY26, compared to Rs 17 crore in Q1 FY25.
The stock delivered an ROE and ROCE of 24.25 percent and 33.70 percent respectively, and is currently trading at a P/E of 10.20x as compared to its industry average of 9.36x.
DreamFolks Services Ltd is an Indian airport services aggregator that provides a tech platform for banks, airlines, and travel companies to offer airport services to their travelers. DreamFolks connects global card networks and airport service providers, like lounge operators, transport, spa, food, and hotels, all onto a single platform. In addition to the traditional lounges, DreamFolks has nap rooms, curated meals, and other airport services at select airports of Bengaluru, Cochin, and Mumbai.
However, it is to be noted that Dreamfolks is not a new player in the railway lounge segment, as it already provides lounge access at different railway stations in India. With this acquisition, the company is adding hardware and taking a deeper stance in the railway-hospitality value chain, thus enhancing the possibility of Dreamfolks further expanding that business and brightening its growth prospect.
Written by Satyajeet Mukherjee
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
