Recently IPL 2021 was concluded, and the winning team Chennai Super Kings (CSK) has clinched their fourth title. After which the shares of the franchise saw a jump in the unofficial market, and put CSK closer to becoming the first 'sports unicorn' from India. Let's look at the story behind this in today's pill.
Before beginning with CSK, let's look at the company which owns CSK, i.e. India Cements, A 75-year-old brand in India manufacturing cement and related products. It is headed by the former International Cricket Council (ICC) Chairman N. Srinivasan.
Currently, CSK shares are trading at Rs 135, giving the franchise a valuation of approx. Rs. 4200 crore. These shares were at Rs 80 in April 2021, which means the valuation of CSK has jumped almost 68% in the past 6 months. Whereas India Cement is currently trading at Rs 193 on Indian bourses with a market cap of around Rs 5980 crore, which given the craze of cricket in India can be surpassed by CSK.
Also apart from monetary benefits, India Cement receives from CSK, given the craze of the CSK brand, India Cements has time and again utilized that to enhance its own image. An example of this was seen on the 75th Anniversary of India Cement, wherein CSK players met the cement manufacturer's top dealers. At the same event, Srinivasan agreed that despite being in the market for 75 years, the popularity of the company has increased due to its subsidiary CSK.
By the way, a little something for Dhoni's fans, in case you missed it - MS Dhoni is playing in 2022 IPL confirmed by himself on the above event, and also a fun fact - MS Dhoni is the vice-president of India Cements.
Conclusion
CSK is currently valued at $900 million which if it continues to perform well, will soon become Manchester United of India, crossing $1 billion in valuation. The question is How quickly will it reach the milestone? Will it continue to be famous even after Dhoni's retirement? Until then India cement will continue to enjoy the brand image of CSK and race against its subsidiary in valuation.
Do let us know your thoughts on the above topic in the comment section and let a healthy conversation begin.
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Disclaimer
The above information is to spread financial literacy. We are not SEBI registered financial advisors, kindly consult your financial advisor before making any investment decision.
Sources