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.
May 29, 2020 / 01:36 PM IST
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).
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
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.