Chennai Super Kings Cricket owns and operates cricket team. The company arranges cricket matches, as well as retails jersey and t-shirts, mugs and wall posters, footwear, wrist bands, and other accessories. Chennai Super Kings Cricket serves customers in India. CSK shares price live rate today 2020 is about Rs 70 per equity share. Dharawat Securities is market leader in buying and selling of CSK Unlisted Shares at best rates.
It is a franchise cricket team based in Chennai which plays in the Indian Premier League (IPL). CSK Cricket is the holding company of CSK. For buying unlisted shares of Chennai Super Kings (CSK) Cricket or any other companies, please call Dharawat Securities on 8108303330
Chennai Super Kings Cricket Ltd profile
CSK was formed in 2008. Mahendra Singh Dhoni is Captain and Stephen Fleming is Coach. CSK returned to the league in 2018 after serving a two-year suspension from the IPL since July 2015 for the alleged involvement of owners in IPL betting case.
SECTOR : Consumer Discretionary
INDUSTRY : Recreation Facilities & Svcs
SUB-INDUSTRY : Entertainment Facilities
FOUNDED : 19 December 2014
ISIN : INE852S01026
Corporate Identification Number (CIN): U74900TN2014PLC098517
PAN No : AAFCC8730K
Registered office : “Dhun Building”, 827, Anna Salai, Chennai – 600002.
Financials of Chennai Super Kings Unlisted Shares (Figs in Rs Cr)
Revenue and profits dropped in FY 2020 due to reduction of income from grant of central rights from Board of Control for Cricket in India (BCCI). Latest networth of Chennai Super King was Rs 175 crore. The company has paid-up capital of Rs 3.10 crore. The current valuation of the Chennai Super Kings is Rs 1500 crore.
Brand Value by Duff & Phelps
The brand value of CSK in 2018 was estimated at $65 million. Furthermore, CSK is the most valuable franchise in the IPL. Hence, CSK shares are in high demand as its owner of a growing IPL brand.
CSK shares seem to be trading at lower levels. In 2018, JSW Sports acquired 50% ownership in Delhi Capitals (erstwhile Delhi Daredevils) for Rs. 550 crores, valuing the franchise at Rs. 1100 crores which roughly translates into an EBITDA multiple of 35.5x. Based on this range of EBITDA multiple can be in a valuation range of Rs 3200 crores to Rs 7300 crores to CSK.
IPL’s brand value rose 19% to $6.3 billion in 2018 as per Duff & Phelps. Due to, renewed broadcast deal, a controversy free tournament and the presence of marquee players across franchises. Duff & Phelps is a New York-based corporate finance advisory firm.
CSK has been the most successful franchise of the Indian Premier League (IPL), winning three titles. Eleven seasons of the IPL tournament were played till now. CSK was the winner in IPL 2018 and the runner-up in season 2019. It has been in the top 3 in 9 out of 10 seasons it has played (winner – 3 and runner-up-5). Hence, CSK is ranked as the most valuable IPL franchise brand.
CSK Revenue Model:
In a short period of 12 years IPL has become one of the leading sports franchises in the world. About 60 percent of IPL’s revenue is from sponsorships. Fifty percent of this is distributed amongst the franchisees. Other major source of income is broadcasting rights. Last year, Star had won IPL rights for a record Rs 16,347 crores or $2.55 billion upto year 2022. This works out to 54 crores per match. 50% of this money goes to the franchisees. Other sources of revenue for CSK include individual team sponsorships, ticket sales and merchandising.
Biggest expense for franchisees is player fees. The total amount that can be spent by a franchisee is capped by BCCI to ensure healthy competition. The franchisee that manages operating expenses well has a higher profit margin. With its highly professional management, CSK is able to generate a higher profit margin.
B. Kalyanasundaram – Director (Engineering Graduate, Former Indian First Class Cricketer).
K.S. Vishwanathan – CEO (Engineering graduate, held leadership position at Wipro, Dell, Azim Premji Foundation).
Promoters – India Cements (N.Shrinivasan)
Top 10 shareholders of CSK:
India Cement Shareholders Trusts 30.9%
Life Insurance Corporation on India 6.0%
Sri Saradha Logistics Pvt. Ltd. 5.7%
Elm Park Fund 5.0%
HIRTLE Callaghan Emerging Market
Reliance Capital (Various funds) 2.5%
Radhakishan Damani 2.4%
Dreyfus International Fund 1.8%
The Boston Company 1.7%
Dimensional Emerging market Fund 1.7%
Mr. Radhakrishna S. Damani has increased his stake in CSK from 2.39% to 2.94% in March 2020.
Global sports teams
CSK is trading at deep discount compared with other international sports franchise stocks. As per Forbes, there are currently 52 sports teams across the world worth at least $2 billion, up from one in 2012. The value of sports teams have skyrocketed on the back of ballooning media rights deals and more owner-friendly collective bargaining agreements that restrain player costs. Valuation of top 10 teams globally is very high. The teams include Dallas Cowboys – Football, New York Yankees – Baseball, Real Madrid – Soccer, Barcelona – Soccer, New York Knicks – Basketball, Manchester United – Soccer, New England Patriots – Football, Los Angeles Lakers – Basketball, Golden State Warriors – Basketball, New York Giants – Football.
India Cements Demerger
India Cements bought the CSK franchise for Rs 364 crore, or $91 million. The amount was paid in 10 instalments over 10 years. i.e. Rs 36.4 crore each year till 2017-18.
After its demerger from India Cements, 94,000 retail shareholders were allotted CSK shares on a 1:1 ratio, each having a face value of Rs 0.10. Record date was 9 October 2015.
IPL has by far been the most successful sporting event in India, in which CSK has enjoyed its own pedigree. In the stock market too, CSK is enjoying its first mover advantage over seven other franchises. Csk share price is expected to rally as the game catches popularity across the globe. chennai super kings share price has hit record high of almost Rs 90 till date.
There is no listed peer comparable company of CSK. The company is said to have very sound fundamental and cheap valuation compared to its international players. As per several research analysis, the stock can command a valuation range of Rs 5000 crores to Rs 7500 crores. The fair value per share of CSK is Rs 85 at the lower end and Rs 190 at the higher end of the valuation range, leaving huge upside from the present share price.
Recent news and developments
14th Edition of IPL to begin on 11th April,2021
The BCCI and IPL Governing Council has almost zeroed down on the tentative dates and schedule. IPL 2021 is likely to start on 11th April and will be concluded on 6th June.
Chennai Super Kings Doubled Investor Money In Private Market In Six Months – 24 June 2019