The uncertainty around the 13th edition of the Indian Premier League (IPL 2020) has hurt almost every stakeholder of the league but not the Chennai Super Kings (CSK). On the contrary MS Dhoni led CSK is making hay in the grey market for unlisted shares. CSK shares currently are being traded almost at 4 times the values it was in Jan 2019. Especially after the official announcement of IPL 2020 in UAE and the government clearances, the shares are now trading in a price band of Rs. 54-58.
The same shares were being traded at Rs.35-37 a week ago. In January 2019, CSK shares were changing hand at Rs. 13-15 per share in the unlisted market. The stock has gained about 400 per cent in the last one-and-a-half years.
Even as VIVO has pulled out of the IPL 2020 still CSK shares are selling like hot-cakes in the unlisted market. Reason, irrespective of whatever struggle is happening on the sponsorship front with the BCCI at the Central level or with the team sponsorships, CSK’s team sponsorship revenues remains unaffected. As per the team management of CSK, company has managed to retain almost all sponsors that had signed with the team before IPL 2020 got postponed.
“We have not lost any sponsorship deal. On the contrary, we have added few more as the season is on now”, said one of the official in CSK management.
IPL 2020 : MS Dhoni led Chennai Super Kings stock price touches new high
CSK may lose this year on account of gate revenues and Central sponsorship share as VIVO has pulled out as IPL sponsor. But overall their bottomline will only get affected by not more than 5-10%. That is the reason, share dealers in the unlisted markets are bullish about the long-term outlook of CSK.
Sandip Ginodia of Abhishek Securities, a dealer in unlisted shares, said CSK is one of the best unlisted shares to have in a portfolio. “But the scrip has rapidly gained momentum of late amid many negatives. The company is raising money leading to equity dilution. The Vivo pullout may work negatively for the company in short-term but overall it is still a buy as the long term prospects for CSK are very strong” he said.
As reported earlier by InsideSport, In FY20, CSK generated Rs 50.33 crore PAT on a consolidated basis, which was 54.7 per cent less that Rs 111.2 crore reported for FY19. Revenue for the previous financial year plunged 14.7 per cent to Rs 356.53 crore from Rs 417.43 crores a year ago.
IPL 2020 : CSK shares can further go up if team can perform well in IPL 2020
According to the experts trading in the grey market, shares of CSK can go up further by 25-30% if Dhoni’s team can win do well in UAE.
“If CSK can win the IPL title this time, that will bring in more sponsorship revenues for the team and even the brand value will grow further for the team and we can see upside of 25-30% more from the current levels”, said the leading broker whose clients trades in the CSK shares.
Meanwhile, the CSK squad will be assembling in Chennai very soon. The team management of CSK has asked the entire squad san the international players in the team to assemble in Chennai. The team will travel to Dubai via Chartered flights from Chennai. InsideSport has also learnt that the families of the team will not travel with the team.
This means that the team leader Dhoni, who is most of the times seen traveling with his wife Sakshi and daughter Ziva to the tournaments, this time will have to spend time in IPL 2020 just with his team members.
“We along with the players have decided that it does not make sense in these Covid times that players families should accompany them to UAE. No one wants to take risk with their families. Players will be assembling in Chennai and we will fly to Dubai from here only”, said CSK Management official.
For when will team leave for UAE, where they will stay ? Click the below-link