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Unlisted Shares
Dream11 Essentials
Read this research report to get an in-depth analysis on Dream 11 share price -
- Dream11 Upcoming IPO details
- Dream11 Share Price details
- Dream11 IPO details
- Key Ratio
- Peer Comparison
- Ownership
- Financials (Balance sheet, Profit & Loss)
- Dream11 Latest News
Face Value
Value of a security, as stated by its issuer. It has no relation with market price of the stock.
Total Share
Total shares or total number of shares outstanding represents the amount of stock on the open market, including shares held by institutional investors and restricted shares held by insiders and company officers.
Total Income
Gross income refers to the total income earned by an individual on a pay check before taxes and other deductions. It comprises all incomes received by an individual from all sources – including wages, rental income, interest income, and dividends.
Profit After Tax
It is the final profit left over after subtracting all operating and non operating items from net revenue.
EPS
It is the profit allocated to each outstanding share of common stock.
P/E
It is a valuation parameter that measures the company's current share price relative to its per-share earnings. Generally, high P/E is Overvalued & low P/E is Undervalued.
P/B
It shows the relationship between the current price and the book value of each share. A lower P/B ratio can mean that the stock is undervalued.
Market Capitalisation
Market capitalization is the aggregate valuation of the company based on its current share price and the total number of outstanding shares.
Enterprise Value
It measures companys total value, which includes market capitalization, debt and excludes cash.
Book Value
It calculates the per share value of a company based on its equity available to common shareholders
Intrinsic Value
Intrinsic value is the anticipated value of a company or stock determined through fundamental analysis. It is also referred to as the price a rational investor is willing to pay for an investment, given its level of risk.
Earnings Yield
Sector
A sector is an area in which businesses share the same or a related product or service. It can also be known as an industry or market that shares common operating characteristics
Sub-sector
Subsectors are the divisions of a sector. They are areas that vary from the rest of the sector substantially enough to justify creating a plan just for the subsector.
Category
Category is defined as a class or division of things regarded as having particular shared characteristics.
Cashflow - Operations
It indicates the amount of money a company brings in from its ongoing and regular operations over a fixed period of time.
Cashflow - Financing
It shows the net flows of cash that are used to fund the company, which include transactions involving debt, equity, and dividends.
Dream11 Growth
Compounded Sales Growth
1 Year
4 Year
7 Year
Compounded Profit Growth
1 Year
Return On Equity
2017
2020
2023
Highlights
Strength
- Strong User Base: Dream11 has approx. 20 Cr registered active users and 40 sports associations & leagues as official partners. Despite new GST regulations, Dream11 onboarded 5.5 Cr users to its platform last year.
- Backed by Strong Investors: Dream11 has been funded by renowned investors such as Tiger Global, Chrys Capital, Falcon Edge Capital, TCV, TPG, Steadview Capital Management, etc
Revenue Growth
- Over the past 5 years, the company has experienced a 95% CAGR growth in revenue, increasing from ₹225 Cr in FY18 to ₹6385 Cr in FY23. In FY23 alone, approximately 1,000 Cr fantasy sports teams were created, and 5.5 Cr new users joined, bringing the total registered users to 21 Cr. Additionally, the platform saw a remarkable 79% year-on-year growth in female users, as revealed by Dream11’s cofounder and CEO Harsh Jain in his LinkedIn post.
Net Profit Growth
- In the past 5 years, the company has experienced a 224% CAGR in net income, escalating from -₹65 Cr in FY18 to ₹188 Cr in FY23. In FY23, the company's net profit reached ₹188 Cr, reflecting a 7% net profit margin.
- Following the implementation of the new GST regime for online real money games in October 2023, Dream11 anticipated a substantial deterioration in its financial performance, leading to an 80% reduction in its profit target for FY24.
Return Ratios
- ROE: The company has delivered a 19% return on equity in FY23
- ROCE: The company has delivered a 22% return on capital employed in FY23
Investment Thesis
- In FY23, the company added 5.5 mn new users, expanding its registered user base to 21 mn. This user growth contributed to a 95% CAGR revenue increase. However, in FY24, Dream11's auditor, EY affiliate SR Batliboi & Co, highlighted in the financial statements that outstanding dues, following notices from the Directorate General of GST Intelligence in September, "may cast significant doubt on (the) group’s ability to continue as a going concern."
- After introducing the new GST regime for online real money games in October 2023, Dream11 anticipated a substantial decline in its financial performance, resulting in an 80% reduction in its profit target for FY24.
- Facing a tax demand of over ₹28,000 Cr from GST authorities, Dream11 has legally contested this by filing a lawsuit in the Mumbai High Court, challenging the tax demands. This legal action is expected to impact the company's profitability negatively. Despite this, considering Dream11's financial strength and management vision, we recommend holding the shares until the High Court decision is reached. As per the intrinsic value, the company share price stands at ₹ 4,23,047.
Business Rating
Managment
Accounting Practice
Profatibility
Solvency
Growth
Valuation
Overall Ratings
Recommendation
Our Team
BHAVIT RAJESH SHETH
( Whole-time director )
As the COO, Bhavit focused on providing the best, most trusted, user-focused experience via operational excellence throughout the company’s processes. Bhavit is an avid fantasy sports enthusiast, and a lifelong Manchester United and Indian cricket team fan.
As the COO, Bhavit focused on providing the best, most trusted, user-focused experience via operational excellence throughout the company’s processes. Bhavit is an avid fantasy sports enthusiast, and a lifelong Manchester United and Indian cricket team fan.
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