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Last Updated : May 29, 2020 01:36 PM IST | Source: Moneycontrol.com

Hold Wonderla Holidays target of Rs 145: Sharekhan

Sharekhan recommended Hold rating on Wonderla Holidays with a target price of Rs 145 in its research report dated May 28, 2020.

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Sharekhan's research report on Wonderla Holidays


Q4FY2020 numbers were affected by a sharp decline of 31% in footfalls as parks were shut in the last few days of March. Revenue fell by 30% and OPM declined to 12% due to lower operating leverage. Bangalore, Kochi and Hyderabad parks saw footfalls drop by 38%, 31% and 22%, respectively, led by a fall in group bookings and walk-ins. Ticketing and non-ticketing revenue also declined. We expect H1FY2021 to remain subdued, as parks are expected to remain shut in most parts for H1FY2021. If the pandemic normalises, some recovery might be seen in H2YF2021 (at ~40-50% capacity utilisation).



Outlook


The stock has corrected by ~74% in the last three months factoring in near-term uncertainties. It is trading at a discounted valuation of 8.1x its FY2022 EV/EBIDTA; we maintain a Hold rating with a revised price target (PT) of Rs. 145.




For all recommendations report, click here

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First Published on May 29, 2020 01:36 pm
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