Moneycontrol Bureau Edelweiss has maintained a buy rating on Wonderla Holidays with a target price of Rs 360 per share. The brokerage feels that sound management, robust brand franchise, reasonable pricing and attractive rides place Wonderla in a sweet spot to gain from urban recovery. Shares of Wonderla rose 5 percent intraday on Thursday.
According to Edelweiss, Wonderla’s blended gross realisation per customer will jump riding improvement in proportion of non‐ticketing revenue, improvement in average ticket price (ATP) and also introduction of differentiated and premium offerings.
However, it raises concerns about Wonderla's footfall. It believes that near term the footfall growth may come under pressure as discretionary spending continue to be weak. Though in the near term discretionary slowdown will have a impact on the footfalls but over the long term it remains positive as it feels Wonderla will be a key beneficiary of the recovery in the discretionary environment.
The amusement park company is expected to start Hyderabad property in April 2016. "This park is likely to ramp up much faster than the others due to better connectivity and younger population, says Edelweiss.At 10:12 hrs Wonderla Holidays was quoting at Rs 298.90, up Rs 13.10, or 4.58 percent on the BSE.Posted by Nasrin SultanaFollow @NasrinzStory
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