As the Summer Season starts in the upcoming months, there is a tendency to play water sports or go on for adventure with friends and family. Over the period, some companies tend to build a brand while building their businesses. This Amusement Park company, which owns parks in Bengaluru, Hyderabad, Bhubaneswar, and Kochi and even holds a resort can bank on growing population and increasing income levels. Investors need to analyze companies on their own before investing and need to look at businesses with a competitive edge.
Price Movement
Wonderla Holidays Limited’s stock in Wednesday’s session was trading at Rs. 715.70 per share down by 0.25 percent from the previous closing price of Rs. 717.50. The stock has delivered a negative return of around 17 percent in the past year and has underperformed the Nifty Index in the same period.
Business Segments
As per the recent December 2024 results, the company recognizes its revenue from Amusement parks and resorts which contributed around 73.05 percent, and the remaining 26.95 percent from others. On Operating profit, the Amusement Park business contributed 57.97 percent and the remaining 42.02 percent from Others.
Future Outlook
The company expects the mature park footfalls to grow at 3 to 5 percent and management expects ARPU of non-ticketing to increase from 28 percent to 40 percent which is driven by Food & Beverages, Branded Items, and tying to other non-ticketing purchases. The Chennai Park is to be operational by Q3FY26 end while targeting to open 3 to 5 parks in the next 5 years. Recently, the company raised around Rs. 800 crore through Qualified Institutional Investors (QIP) to support the company’s growth for the next 7 to 8 years.
Financial Performance
In the 1st Quarter of each year (Apr-Jun), the results will be better than in other quarters as in the summer season people are likely to spend more on water sports or adventures. Even during the Oct-Dec Quarter, it is more focused on Festival events and the midterm holidays for children. Recently, their Q3FY25 results show revenue from operations of Rs. 121.50 crore which declined by 1.65 percent year on year, from Rs. 123.55 crore in Q3FY24 and an 80.32 percent increase from Rs. 67.38 crore in Q2FY25. Their net profit decreased by 45.64 percent year on year, from Rs. 37.35 crores in Q3FY24 to Rs. 20.30 crores in Q3FY25. Quarterly, the profits were up by 37.95 percent from Rs. 14.71 crore.
Brokerage Target
Sharekhan by BNP Paribus, a reputed brokerage firm had given a “Buy” Target of Rs. 991 per share which is 38.11 percent higher than the previous closing price of Rs. 717.50 per share as of Tuesday 28th January 2025.
About the company
Wonderla Holidays Limited is India’s largest amusement park chain with an operation of four parks in Kochi, Bengaluru, Hyderabad, and Bhubaneswar while offering diverse attractions
and a luxury resort for family entertainment. The company builds 30 to 40 percent of the rides in-house and the remaining 60 to 70 percent is imported.
Written by Santhosh S
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