Buy Wonderla Holidays; target of Rs 710: Sharekhan

Sharekhan is bullish on Wonderla Holidays has recommended buy rating on the stock with a target price of Rs 710 in its research report dated June 22, 2023.

Broker Research

June 23, 2023 / 11:41 IST

Buy

26 Aug, 2025 12:21

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Sharekhan's research report on Wonderla Holidays

Construction of new Odisha Park has begun and it will be operational by FY2025/26. Chennai park’s construction is set to begin soon with the Tamil Nadu state government waiving local body tax for 10 years. Internal accruals would fund capex of Rs. 350-400 crore with operating cash flow being healthy at ~Rs. 400 crore over the next two years (besides existing cash balance of Rs. 250 crore). Commencement of new parks will add to footfalls from FY26E/FY27E. Existing park footfalls are expected to grow by 5-8% and ARPUs are likely to grow by 8-10% in the coming years.

Outlook

We re-iterate a Buy on Wonderla Holidays (WHL) with a revised price target of Rs. 710. Attractive valuations of 13.0x/11.0x its FY24E/FY25E EV/EBIDTA, a sturdy balance sheet despite a huge capex and strong earnings visibility makes WHL a comfortable play in discretionary space.

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