Prabhudas Lilladher's research report on Imagicaaworld Entertainment
We raise our EBITDA estimates by 2.4% for FY26E but have trimmed our FY27E estimates by 2.7% amid delays in opening timeline of the new park at Sabarmati. IMAGICAA reported strong operating performance with EBITDA margin of 42.9% (PLe 36.7%) aided by a one-off grant income of Rs62mn pertaining to hotel Novotel, Imagicaa. While footfalls were down by ~4% on LFL basis, we expect recovery in FY26E backed by 1) addition of 10 new rides at Wet & Joy water park in Lonavala 2) launch of 2 new shows at Sai Teertha and inauguration of a new trampoline park at Khopoli. Operationalization of the new water park in Indore will provide an additional growth fillip.
Outlook
We expect sales/EBITDA CAGR of 12%/17% over FY25-FY27E. Retain BUY on the stock with an SOTP-based TP of Rs 93 valuing the park/hotel business at EV/EBITDA multiple of 23x/21x (no change in target multiple).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
