I totally agree with you. The charges by the airport operator to the lounge operator will be monthly/ quarterly – but recurring- NOT ONETIME. Further, the airport operator will also increase the charges every year to compensate for inflation. So the lounge operator passes a portion of this increase to DF, which will negotiate with the card issuers to compensate for this increase, who will only compensate partially. So the OPM will get squeezed to 11-13%.
60% projected grow in top line may come for this year buy such high growth is certainly not sustainable.
I didn’t like DF passing recurrent expense as one time- so I sold off all my holding ( which was quite large) so that I can live in peace with some other stocks where I can have more trust in the promoters.
For me, trust in promoters comes first – then the quality/sustainability/ longevity of business and lastly the financials.
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