The CSK share price has seen both highs and lows since the team’s founding in 2008. This year, CSK is entering the IPL 2023 with the status of a unicorn. Unicorn is a term used to describe a privately-held startup company valued at over $1 billion. The team’s brand value is estimated to be around $73.6 million, and its market value is approximately INR 7,600 crores. With this achievement, CSK has become the first sports enterprise in India to reach unicorn status.
CSK share price: Investment Opportunity
The CSK share price may be of interest to investors due to its ongoing popularity in India and its global fan base. The Indian Premier League (IPL) has made cricket more accessible by featuring players from various countries and reaching a global audience, representing their respective countries. As the IPL gains popularity in the United States, Europe, and the Middle East. Investors have the opportunity to invest in the league. One popular option is the Chennai Super Kings (CSK) franchise.
Moreover, The CSK share price has risen in response to the inclusion of the Gujarat and Lucknow teams in the IPL for the 2023 season. The acquisition of Wanderers Johannesburg by CSK in the South African league has generated a positive sentiment among investors. This could potentially lead to an increase in the company’s valuation. These factors may make the CSK share price an attractive option for investors.
CSK Shareholders
| CSK Shareholder | No. of CSK Shares | Holding (in %) |
|---|---|---|
| Trustees, India Cements Shareholders Trust | 9,50,79,183 | 30.86 |
| Life Insurance Corporation of India; Life Insurance Corporation of India P & GS Fund; LIC of India Market Plus Growth Fund | 1,86,09,745 | 6.04 |
| Sri Saradha Logistics Pvt Ltd. | 1,75,25,976 | 5.69 |
| Elm Park Fund Limited | 1,53,61,746 | 4.99 |
| Hirtle Callaghan Emerging markets portfolio | 88,42,285 | 2.87 |
| Reliance capital trustee co. ltd. | 77,29,231 | 2.51 |
| Radhakishan S Damani | 73,69,263 | 2.39 |
| Dreyfus International Funds INC | 54,40,206 | 1.77 |
| The Boston company INC | 51,86,784 | 1.68 |
| Dimensional Emerging markets value fund | 50,80,767 | 1.65 |
| Total outstanding shares of the company | 308,153,074 | 100 |
This information may not be up-to-date as the company is currently unlisted and the ownership structure may have changed since it was published.
CSK Business Model
The CSK business model is centered around generating revenue through a variety of streams. Understanding these revenue streams is important for investors considering purchasing CSK shares. As it can provide insight into the overall financial health and stability of the company.
Also, Read: IPL Share Price on the NSE and BSE: A Guide for Investors
Sponsorship
One of the major revenue streams for CSK is through its own sponsorships. CSK’s own sponsorship deals can account for 15-20% of the company’s total revenue. This includes partnerships with brands and companies that pay to have their products and services advertised through CSK’s various platforms, including its website and social media channels, as well as at its sporting events.
CSK Merchandise
Another significant source of revenue for CSK is through the sale of merchandise. Merchandise includes team jerseys, hats, and other branded products. These sales can provide a steady stream of income for the company. Particularly during peak periods such as the start of a new season or when the team is performing well.
Broadcasting Rights
Media rights are another key component of the CSK business model, accounting for around 60% of the company’s total revenue. This includes the sale of broadcasting rights to television networks and streaming services. As well as the sale of digital media rights to companies that want to use CSK’s content on their platforms. Moreover, 10% of IPL broadcasting right will go to CSK company for 2023-27. An estimated 620 million dollars CSK will get from the media rights deal for each year.
Tickets and in-stadium advertisement
Gate revenue and ticket sales also contribute to the overall financial health of CSK, accounting for around 10% of franchise owners’ total revenue. This includes income from ticket sales for sporting events, as well as revenue from in-stadium advertisements and concessions.
CSK Unlisted Share Price
Chennai Super Kings (CSK) is an Indian cricket team that was owned by Indian Cements before 2015. However, following a scandal in 2015, CSK became an independent company. In 2018, the company began releasing some of its shares in the unlisted market. At the time, the share price was INR 20 (Indian Rupees). Over the past five years, CSK has returned an impressive 108% per year and is expected to continue performing well in the future. This year, the shares have been trading in the grey market at a price of INR 210 to 225. The company’s market cap is now higher than that of its parent company, India Cements, which stands at INR 6,869 crores (Indian Rupees). In fact, India Cements’ market cap is now 700 crores less than that of Chennai Super Kings Cricket Limited.
Track investment
There are several resources available for investors to research IPL and CSK shares, including:
- The team’s website: The team’s website is a good place to start for general information about the team, including its history, management, and players.
- Financial statements: Investors can review the team’s financial statements, including balance sheets, income statements, and cash flow statements, to get a sense of the team’s financial performance. These statements are typically available on the team’s website or through regulatory filings.
- News articles: Investors can read news articles about the team and the IPL to stay up-to-date on developments and get a sense of the team’s overall performance.
- Analyst reports: Investors can review analyst reports about the team and the IPL to get insights and opinions from experts in the industry.
- Online forums and discussion groups: Investors can participate in online forums and discussion groups focused on IPL and CSK shares to get insights and perspectives from other investors.
Conclusion for CSK share price
- The unlisted shares of Chennai Super Kings (CSK) have increased 25% YoY, reaching INR 200-205 per share.
- The price increase is due to investor interest in the team, which has seen growing revenue from sponsorships, royalties, and merchandise.
- CSK also has a relatively “cheaper” price-earnings ratio compared to other global sports franchises.
- The high demand for newly inducted IPL franchises Gujarat and Lucknow, which were purchased at significantly higher prices than the base price, is also contributing to the price increase of CSK shares.
- CSK is estimated to have 308 million unlisted shares, of which 5-7% regularly trade, leading to more secondary market transactions.
- The expectation of a potential IPO and the lack of other Indian sports franchise teams available for trade may also be driving demand for CSK shares.
- The COVID-19 pandemic and the shift to work-from-home culture have led to an increase in interest in sports and online gaming, benefiting CSK.
- CSK reported a profit of INR 40.26 crore for the year ending March 2021, down from INR 50.33 crore in the previous year.
