Buy Wonderla Holidays; target of Rs 1010: Sharekhan

Sharekhan is bullish on Wonderla Holidays has recommended buy rating on the stock with a target price of Rs 1010 in its research report dated July 30, 2024.

Broker Research

July 31, 2024 / 13:11 IST

BUY

26 Aug, 2025 12:21

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Sharekhan's research report on Wonderla Holidays

Wonderla Holidays’ (WHL’s) Q1FY2025 numbers were weak, as footfalls were hit by extreme heatwave and elections, leading to 6% y-o-y decline in revenue; adjusted EBITDA margins fell ~700 bps y-o-y owing to higher fixed costs on account of operationalisation of the Bhubaneshwar park.Bhubaneshwar Park’s footfalls will be ~4.0-4.5 lakhs in FY2025. Overall, for FY2025 management expects flat to a marginal rise in footfalls despite a fall in Q1FY2025. Non-ticketing ARPU grew by 15-16% y-o-y across parks in Q1 led by new F&B offerings.EBIDTA margins fell sharply in Q1 and are expected to be lower in FY2025 due to operationalisation of the Bhubaneshwar Park. However, margins will improve in the medium to long run.

Outlook

Stock trades at 20x and 14x its FY2025E and FY2026E EV/EBIDTA, respectively. We maintain Buy with a revised PT of Rs. 1,010.

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