Dream11 Share Price - Financial, Valuations and News
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Unlisted Shares

PHYSICAL

Dream11 Essentials

Dream11 Growth

Compounded Sales Growth

1 Year

4 Year

7 Year

Compounded Profit Growth

1 Year

Return On Equity

2017

2020

2023

Highlights

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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
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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.
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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.​
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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
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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

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Managment
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Accounting Practice
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Profatibility
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Solvency
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Growth
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Valuation
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Over all Ratings
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Recommendation
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Our Team

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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.

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