Monday, August 17, 2020

With Dhoni's Retirement, CSK Stock Price Sees Correction Too; But This is More Positive Than Negative For CSK

When Mahendra Singh Dhoni announced retirement from international cricket this past Saturday, unlisted shares of IPL franchise Chennai Super Kings (CSK), which he leads, saw a small correction in the unofficial market for trading in such shares. 

CSK shares have plunged over 10 per cent in the past couple of weeks and traded at Rs 48-50, coming down from Rs 52-55 in August first week. 

Dealers said the correction over the weekend was more of sentimental, and they are very confident about the prospects of the sports franchise in the long run, as the fundamentals remain strong. 

This is more positive than negative for CSK, as he will continue to play IPL. The team may capitalise this business opportunity over the next couple of seasons, contributing to more revenues,” said Sunil Chandak of Mumbai based Gennext Investrade, which deals in such shares. 

Dhoni will now be an exclusivity for IPL,” he said. “This might increase advertisement rates for matches of Chennai Super Kings. Everyone will tend to monetise the nostalgia associated with Dhoni.” 

The 13th edition of IPL kicks off on September 19, 2020. It is highly anticipated that the next edition will be held as per the normal schedule over March-May 2021, which may feature MS Dhoni once again. 

Source and full article: ET

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