This Stock Shows 15% Upside; Here’s What You Need to Know
Investing.com | May 07, 2024 01:32
Although the broader markets are witnessing some selling pressure from the last couple of sessions, these are the times to hunt for your favorite counters. In the beaten-down space, investors should keep the shares of Dreamfolks Services Ltd (NS:DREM) on the radar.
The company is in the business of providing airport services in India and internationally and has an almost monopoly in it, with a market capitalization of INR 2,909 crore. On the shareholding front - such a small company also has FIIs’ attention as they hold a 5.35% stake, as of 31 March 2023 and mutual funds also own up to 7.1% interest.
In Q3 FY24, the company reported a 49.4% YoY jump in revenue to INR 305.74 crore, while the net income rose 6% to INR 320.12 crore, the highest in three quarters.
InvestingPro’s financial health check has scored the company 4 out of 5, which is an excellent rating. This mechanism checks over 100 parameters on the fundamental and technical front to arrive at a rating which makes it a piece of cake for investors to gauge the strength of a stock. Any stock with a rating below 3 can be avoided to keep the risk in check.
Image Source: InvestingPro+
Coming to the valuations, after a comprehensive analysis by using 14 financial models, the fair value of the stock comes at INR 596.6 per share, depicting a 15% upside from the CMP of INR 519. This is a great feature that lets investors know beforehand what is the profit-booking price they should target on fundamental grounds.
Also, there are 2 analysts that are covering this counter. They have given an average target price of INR 640 per share, which can be viewed on InvestingPro, even higher than the fair value which denotes a bullish sentiment. This further can be used in the due diligence process to make an investment decision.
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