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Chennai Super Kings: MS Dhoni-led franchise holds ground in unlisted market ahead of IPL

Chennai Super Kings: MS Dhoni-led franchise holds ground in unlisted market ahead of IPL

Chennai Super Kings reported a consolidated net profit of Rs 13.79 crore for the year ended on March 31, 2023, agains the net profit of Rs 31.54 crore for the fiscal year 2021-22.

Pawan Kumar Nahar
Pawan Kumar Nahar
  • Updated Mar 19, 2024 1:49 PM IST
Chennai Super Kings: MS Dhoni-led franchise holds ground in unlisted market ahead of IPLChennai Super Kings owns Joburg Super Kings, a professional Twenty20 franchise cricket team formed in 2022 and based in Johannesburg, South Africa.

Indian Premier League (IPL), the biggest fiesta of T-20 cricket, is just days away and the MS Dhoni led Chennai Super Kings (CSK) will defend its title against nine other franchises. However, the Chennai-based cricket squad has remained stable in terms of performance in the unlisted markets. According to the dealers in the pre-IPO, shares of Chennai Super Kings are trading roughly around Rs 165-170. The stock has been able to hold its ground, outperforming the other unlisted peers amid the fall in the broader markets. However, the stock has been able to deliver multibagger returns to the investors in the unlisted space. Chennai Super Kings owns Joburg Super Kings, a professional Twenty20 franchise cricket team formed in 2022 and based in Johannesburg, South Africa. Other than this, it also owns Texas Super Kings that competes in Major League Cricket (MLC) from 2023. It is based in Dallas, Texas. Sandip Ginodia, CEO of Kolkata-based Altius Investech said that the company has only a limited month for activity as IPL or SA20 is a seasonal business. They should have bid for a team in Women's Premier League (WPL) to add more strength, Ginodia opined. "Any franchise will take 4-5 years to become profitable or reach breakeven," he said. Chennai Super Kings reported a consolidated net profit of Rs 13.79 crore for the year ended on March 31, 2023, against the net profit of Rs 31.54 crore for the fiscal year 2021-22. Profitability of the company was impacted due increased expense of the other two franchises. Joburg Super Kings reported an operation of loss of around Rs 33 crore in the given year. Similarly, its revenue from operations dropped 10 per cent to Rs 305.85 for the April-March 2023 period. The company had reported a revenue of Rs 341.05 in the FY22. The company will announce its earnings for the year ending March 31, 2024 in September-October. Narottam Dharawat, Founder of Mumbai-based Dharawat Securities said that there are limited deals and demand for Chennai Super Kings amid the absence of the newsflow. "The financial performance of the company has been muted for the last couple of years, which is also not supporting the stock prices," he said. Chennai Super Kings had became India's first unicorn a little more than a year ago, when its total market capitalization topped $1 billion in terms of total valuations. However, as of the current prices, its valuaiton is around Rs 5,250-5,500 crore. Dinesh Gupta, Co-founder of Delhi-NCR based UnlistedZone said that there is clarity or news around the IPO of Chennai Super Kings, which is why it has not been able to hog limelights. "Fundamentally, the company is sound but the listing timeline will be the biggest factor driving the sentiments for it," Gupta said. Seasoned investors RK Damani and Life Insurance Corporation of India (LIC) are among the shareholders of Chennai Super Kings. CSK is the only main cricket franchise being traded in the markets. However, compared to its global peers from other sports, the likes of football, baseball and basketball, whose top-tier franchises command valuations up to $5 billion.

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Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Published on: Mar 19, 2024 1:49 PM IST
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