Chennai Super Kings Unlisted Share
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Chennai Super Kings Unlisted Share
Overview
Founded on December 19, 2014, Chennai Super Kings Cricket Limited is a division of India Cements. This business, which is well-known in India for its cricket team, the Chennai Super Kings, is quite well-liked there. The group is headquartered in Chennai, Tamil Nadu, and was created in 2008. They participate in the Indian Premier League, a domestic cricket league. The M.A. Chidambaram is the site of the home games. They have won four times since 2010 and have the best winning percentage of all the other clubs.
CSK Investment Thesis
Company Overview:
The franchise cricket team Chennai Super Kings (CSK) is situated in Chennai, Tamilnadu, India. Their home ground is Chennai’s M.A. Chidambaram Stadium, and they participate in the Indian Premier League (IPL). India Cement holds a significant share in the team, which is owned by Chennai Super Kings Cricket Ltd. The team’s IPL suspension lasted for two years. In addition to having the greatest match victory percentage (58.98%) of any team in the IPL, the Super Kings have won the IPL championship four times (in 2010, 2011, 2018, and 2021). They own the records for the most playoff and IPL Final appearances, with eleven and nine, respectively.
The business owns and operates the cricket franchise Chennai Super Kings, which was just valued at more than US $1.2 billion, making it the nation’s first unicorn in the sports sector. This demonstrates the company’s tremendous development after winning the IPL trophy in 2021, which has elevated them to the status of the Indian Premier League’s most valuable and rapidly expanding franchise. In terms of operating revenue, the company’s CAGR in 2022 over 2020 is 158%, a significant rise given that the 2020 Indian Premier League was cancelled owing to a nationwide epidemic. Despite a number of negative circumstances, the firm has managed to grow its income, which highlights its operational
Revenue Stream:
Brand Sponsorship:
Brand sponsorships account for a significant portion of the money generated by IPL franchises. By displaying the businesses’ insignia on their jerseys, caps, and team uniforms, franchises collaborate with them to increase brand awareness. The more money a firm must spend, the bigger the logo. Teams also profit from additional tournament-related marketing campaigns that their sponsors run. An IPL team’s sponsorship income is said to account for 20–30% of its total earnings.
Ticket Sales
The largest athletic event in India was impacted in 2020 and 2021 by the worldwide epidemic. But this year, it returned with a bang. The stadiums are once again packed with fans, and while the BCCI and sponsors will receive a tiny percentage of ticket sales proceeds, the remainder goes directly to the team’s coffers. The stadium’s seating capacity, the anticipation around the event, the cost of living in the city, and other factors are taken into consideration when setting ticket pricing. It is estimated that 10% of IPL clubs’ revenue comes from ticket sales.
Prize Money
A massive sum of money is offered by BCCI to the winning team. This sum fluctuates annually.
Merchandise Sales:
India’s market for sportswear and equipment is predicted by ResearchAndMarkets to grow from $28 billion in 2022 to $40.6 billion in 2027. Every franchise receives a portion of the money that customers spend on items like T-shirts, caps, wrist watches, and other items.
Media Rights:
For the previous ten years, Dream 11 and Sony India were the official media sponsors of the Indian Premier League. Disney+Hotstar has been announced as the official broadcaster of the 2022 Indian Premier League (IPL). In advance of the cricket spectacular, the league has added 13 new sponsors, including Swiggy, Pristyn Care, Ather Energy, Parle Agro, Livspace, Niyo, Zepo, Spotify, L’Oreal, and Spinny. IPL’s income distribution strategy is well-known. Broadcasters and internet streamers provide a significant amount of revenue to the BCCI. This money is split among all IPL teams once their fees are subtracted, based on IPL team ranking. Another source of revenue for IPL franchisees is media rights. They actually provide the most financial support to the IPL brand.
Sponsorship Income:
Everything at the stadium, from the players’ bats to the bails on the stamps, has a cost. The Indian Premium League’s true revenue source is its sponsors. Every IPL team has sponsors for every aspect of their play, including the jersey, sleeve, and key sponsors, all of which significantly increase the teams’ overall revenue. The teams collaborate with companies to market brands in exchange for hefty sums of money.
Key Strength:
- A robust growth rate has been seen.
- Absence of Peer Rivals
- robust brand worth
- Growing CAGR figure
- M.S. Dhoni leads Team CSK with strength and determination.
Shareholding Pattern:
Peers:
Financials:
Valuation:
- In 2022, the company’s sales increased significantly. The company’s sales increased by 37.4% in FY22.
- Due to a rise in the company’s overall equity, the book value per share grew in FY22 compared to FY’21. The rise in reserves and surplus is what led to the growth in equity.
- In FY22, cash flow from operations dropped by 51.2%.
- In FY22 compared to FY21, cash flow from investments grew by 300%.
- The company’s current asset rose by 32% in FY22 compared to FY21, but the rise in trade payables also raised the company’s current liabilities.
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