DreamFolks Services IPO: How good is it?

In our previous part of DreamFolks Services IPO story, we read about the key details of the IPO. Here we will answer some questions about DreamFolks Services and evaluate it on parameters like management, financials, valuations, etc. IPO questions The company/business 1) Are the company's earnings before tax more than Rs 50 crore in the last 12 months? No. The company's profit before tax for FY22 was Rs 20.5 crore. 2) Will DreamFolks be able to scale up its business? Yes. As the number of air travelers, airports, and cards issued grows, DreamFolks will be able to grow simultaneously. 3) Does DreamFolks have recognisable brands truly valued by its customers? Yes. The company has a strong brand visibility among its customers due to being a dominant player in the market. 4) Does DreamFolks have high repeat customer usage? Yes. Frequent air travelers who use lounges automatically become regular customers of DreamFolks. 5) Does the company have a credible moat? Yes. Its relationship with card issuers, card networks, and lounge operators and their dependency on DreamFolks gives a moat to the company. Relationship with card issuers attracts lounge operators and relationship with lounge operators attracts card issuers. 6) Is the company sufficiently robust to major regulatory or geopolitical risks? Yes. The company does not operate in a regulation heavy industry and is not prone to geopolitical risks. Although it has an indirect threat from card issue