DreamFolks Shares Plunge After Lounge Exit — SEBI Analyst Warns Of A Slide Towards ₹100

DreamFolks Services’ shares tumbled 5% on Thursday, following another 5% lower circuit the previous day, after the company announced its exit from India’s domestic airport lounge business with immediate effect. 

The airport services aggregator told exchanges late Tuesday that access for clients had been discontinued and acknowledged the impact as “material.” Other domestic offerings and its global lounge operations remain in place.

“We reiterate that contracts with our clients remain active, and discussions on alternate customer value propositions are in progress,” DreamFolks said in its filing. 

The disclosure came just days after Travel Food Services terminated its contract with the company, following similar notices in August from Adani Digital, Semolina Kitchen, and Encalm Hospitality.

Business Fragility

SEBI-registered analyst Ankit Kanodia said the update underscored how quickly once-successful businesses can lose relevance. 

He noted that behind every company collapse are founders who “carry the hopes of thousands of employees, partners, and investors,” stressing that entrepreneurs “are the gladiators of capitalism” who take the risks while investors watch from the sidelines. 

Kanodia added that DreamFolks’ struggle shows how consumer behavior can shift faster than a business strategy, calling it a reminder of the human side of market decline.

Technical Breakdown

SEBI-registered analyst Rajneesh Sharma described DreamFolks’ chart as “all signals flashing red,” citing an intact downtrend of lower highs and lower lows within a steep descending channel. 

He said multiple breakdowns have left the stock vulnerable, with resistance near ₹206 and ₹294 and crucial support at ₹124–₹120. If that floor breaks, Sharma warned the stock could slide toward ₹100.

He added that the Relative Strength Index (RSI) remains below 30, indicating deep oversold conditions, while the On-Balance Volume (OBV) has broken down, suggesting institutional exits. 

Sharma highlighted that heavy selling volumes have accompanied weakness, while green candles show weak participation, pointing to a sign of distribution.

What Is The Retail Mood?

On Stocktwits, retail sentiment was ‘bullish’ amid ‘extremely high’ message volume.

DreamFolks Services’ stock has declined 68.6% so far in 2025.

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