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Buy Wonderla Holidays; target of Rs 425: Sharekhan

Sharekhan is bullish on Wonderla Holidays has recommended buy rating on the stock with a target price of Rs 425 in its research report dated December 15, 2022.

December 16, 2022 / 02:35 PM IST
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Sharekhan's research report on Wonderla Holidays

Wonderla’s footfalls stood almost flat over FY2018-FY2020 at 24-25 lakhs. With strong demand and defined strategies, the company’s footfalls are expected to register a CAGR of 8-9% over FY2023-FY2025 to close to 30 lakh footfalls. Further, operations of the new park in Odisha/Chennai will add incrementally (likely from FY2025-FY2026). EBIDTA margin is expected to touch 40% in FY2023 and will consistently improve in the coming years on account of better operating leverage. The company has cash of close to Rs. 200 crore and is likely to generate cash of Rs. 100 crore incrementally every year. Thus, capex for Chennai/Odisha will be done through internal accruals without giving stress to the balance sheet.


We reiterate Buy on Wonderla Holidays Limited (Wonderla) with a PT of Rs. 425. The stock is our preferred pick in the small-cap discretionary space with a strong brand presence in the amusement park space coupled with a lean balance sheet despite an asset-heavy model. The stock trades at 12.3x/10.5x its FY2023/FY2024E EV/EBIDTA.

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Wonderla Holidays - 16 -12-2022 - khAN

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first published: Dec 16, 2022 02:35 pm