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The shares of Wonderla Holidays, a small-cap amusement parks operator hit the upper circuit of 20% on Thursday. The stock advanced Rs. 55.80 or 19.99% to touch hits 52-week high of Rs. 334.95 per share. The company declared its results at 1:30 PM IST after which the stock surged to hit its upper circuit limit.

As of 11:25 AM IST, Friday the stock was up 4.5% and trading at Rs. 350.5 per share. In the last five days, it has advanced more than 29%. For the day, the benchmark NIFTY Small Cap 100 index was up 0.60% or 56.65 points at 9,455 points. 

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Wonderla commenced its operations in 2000 in Kochi, Kerala with one amusement park. Fast forward to today, the company operates three amusement parks in Hyderabad, Bengaluru and Kochi. In addition to these, it also has a luxury resort in Bengaluru next to its park. 

The company has grown slowly over the two decades and is virtually debt-free despite operating in a capital-intensive industry. Its other listed peers include Imagicaaworld Entertainment, Nicco Parks and Resorts, and Ajwa Fun World.

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For the quarter ended June 2022, it posted a net profit of Rs. 64 crores, an increase of 611% sequentially from Rs. 9 crores reported in the March 2022 quarter. It reported a loss of Rs. 13 crores during the same period last year. 

As for the revenues, the revenues climbed 157% sequentially to Rs. 149 crores from Rs. 58 crores for the quarter ending March 2022.

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The Q1FY23 profit figures of Wonderla Holidays are in sharp contrast with its annual profit of previous years. Before this, the company declared the highest ever profit in the year ending March 2020.

The promoter shareholding in the company stands high at 69.76% followed by FIIs with 7.73% ownership. Public shareholding amounts to 20.46% while DIIs own 2.06% of the stock. It must be noted that Wonderla is promoted by the owners of V-Guard Industries, a mid-cap electronics company with a market value of Rs. 10,200 crores.

Last month in July, the company announced that it has entered into an agreement with the Odisha government to set up a new amusement park in Bhubaneswar, Odisha. The company’s fourth amusement park will be established on a 50-acre land and will be smaller than other facilities it presently operates. 

Written by Vikalp Mishra


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