A detailed analysis of Party Cruisers - A fast growing micro cap in a recession-proof industry!!
CMP - ₹66.2
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CMP - ₹66.2
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1. Company Overview
• Party Cruisers is an event management company that offers a wide range of event management services like wedding planning, corporate events, theme parties, etc.
• About 75% of their revenues come from Wedding Management and the remaining 25% comes from
• Party Cruisers is an event management company that offers a wide range of event management services like wedding planning, corporate events, theme parties, etc.
• About 75% of their revenues come from Wedding Management and the remaining 25% comes from
Event Management Services.
• The Wedding Management Services range from pre-wedding, during wedding and post wedding events like in-house designing, destination wedding, event décor etc whereas Event management Services range from planning and marketing to production and décor
• The Wedding Management Services range from pre-wedding, during wedding and post wedding events like in-house designing, destination wedding, event décor etc whereas Event management Services range from planning and marketing to production and décor
2. Business Segments
• The company provides it services through 4 business verticals:
a. Vivaah - They do weddings for High Net-Worth Individuals (HNIs) through this vertical. They also provide premium wedding decor in this business segment.
• The company provides it services through 4 business verticals:
a. Vivaah - They do weddings for High Net-Worth Individuals (HNIs) through this vertical. They also provide premium wedding decor in this business segment.
b. Vows Vachan - This is a new vertical that the company has launched where they provide wedding management services to the middle and upper middle class segment. The budgets are lower under this vertical but the volume is much higher.
c. Event Factory - The company offers corporate event management services through this vertical.
d. Live Space - This vertical focuses on artist management and provides anchors, background dancers, DJ artists and others for enhancing the overall wedding experience
d. Live Space - This vertical focuses on artist management and provides anchors, background dancers, DJ artists and others for enhancing the overall wedding experience
3. Process
The company has said that pre-covid, people used to plan their weddings 6 months to a year in advance. But now they are also seeing a lot of weddings that happen with only 1-3 months advance notice
The company has said that pre-covid, people used to plan their weddings 6 months to a year in advance. But now they are also seeing a lot of weddings that happen with only 1-3 months advance notice
4.Payment Terms
• The company has had very little bad debts historically. They usually take a 20-50% token amount from clients before beginning any work. The balance is paid before the wedding.
• The payments from corporate clients take 30-60 days.
• The company has had very little bad debts historically. They usually take a 20-50% token amount from clients before beginning any work. The balance is paid before the wedding.
• The payments from corporate clients take 30-60 days.
5. Geographical Presence
• PCL has offices across Delhi, Chandigarh, Indore, Nashik, Nanded, Hyderabad, Bangalore, Mysore and has organized events in various locations across India and abroad like Maldives, Dubai, and others
• PCL has offices across Delhi, Chandigarh, Indore, Nashik, Nanded, Hyderabad, Bangalore, Mysore and has organized events in various locations across India and abroad like Maldives, Dubai, and others
6. Clients
• The company has organized events for several high-profile clients, including celebrities like Salman Khan, Arpita Khan, Shahid Kapoor, Alanna Pandey, Sanjeev Kapoor’s daughter, Aishwarya Rai’s brother, Anita Dongre’s son, Chanda Kocchar, and
• The company has organized events for several high-profile clients, including celebrities like Salman Khan, Arpita Khan, Shahid Kapoor, Alanna Pandey, Sanjeev Kapoor’s daughter, Aishwarya Rai’s brother, Anita Dongre’s son, Chanda Kocchar, and
corporate entities like Blue Dart, IBG Groups, Chandak Groups, SR Groups etc
7. Franchising
• The company is planning to grow its business through franchising. They plan to have 50+ franchisees by the end of FY25.
7. Franchising
• The company is planning to grow its business through franchising. They plan to have 50+ franchisees by the end of FY25.
• Under this model, the company will tie up with local partners who have connections locally. The partner will bring in business through their connections and the company will execute the event.
• The management has said that they are franchising because it is important to
• The management has said that they are franchising because it is important to
have a local presence in the city as people don’t prefer to give their wedding planning business to someone who lives in a different city. By having a local partner, it makes it easier for clients to reach them.
8. Industry
• The wedding management industry is a largely unorganized industry in India which is mainly run by local independent players.
• It is also a seasonal industry where the peak demand usually occurs from the month of November to April.
• The wedding management industry is a largely unorganized industry in India which is mainly run by local independent players.
• It is also a seasonal industry where the peak demand usually occurs from the month of November to April.
• The industry has largely proven to be recession proof. The company’s management has said that there wasn’t much of a slowdown in weddings during the 2008 financial crisis and during the Covid pandemic weddings began immediately after lockdown restrictions were eased.
9. Future Outlook
• The management has given a guidance of 50-60% revenue growth and 10-11% PAT margin in FY24.
• The company plans to do acquisitions in Delhi, Bangalore and Kolkata which will act as central hubs for providing services in North, South and
• The management has given a guidance of 50-60% revenue growth and 10-11% PAT margin in FY24.
• The company plans to do acquisitions in Delhi, Bangalore and Kolkata which will act as central hubs for providing services in North, South and
East regions of India. The Western region will be catered to from Mumbai where the company is currently based out of.
• The company is also planning to expand internationally. They will be opening their first international office in Dubai during the year followed
• The company is also planning to expand internationally. They will be opening their first international office in Dubai during the year followed
by the UK, US, Spain, Hong Kong and Singapore.
10. Financials
10. Financials
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