Shares of this small-cap stock jumped around 2 percent in Friday’s trading session after the company’s Board of Directors gave its nod to acquire four operational parks in the state of Maharashtra. In the past month, the company’s stock spiked more than 30 percent. 

With a market capitalization of Rs 3,767.49 crores, the stocks of Imagicaaworld Entertainment Limited started their trading session on Friday at Rs 79.15 and closed the session at a share price of Rs 78.18. 

The company’s scrip witnessed an intra-day high of Rs 86.36 showcasing a jump of a whopping 10.50 percent as compared to the previous closing levels of Rs 78.18 apiece. 

The bullish stock price behaviour during the initial trading sessions was observed after the company, through a regulatory filing with the BSE, intimated that the company’s Board approved four operational parks in Maharashtra located in Lonavala and Shirdi and one under-construction Water Park in Indore, planned to be completed in Q1FY25, for a total consideration of Rs 770 crores. 

The cost of acquisition is payable over a period of 2.5 years, subject to various regulatory approvals from the company’s shareholders and other parties. The four operational parks have reported revenue of around Rs 1,245 crores and EBITDA of Rs 73 crores. 

“We anticipate a transformational increase in our footfall by more than 2x, revenue by more than 1.5x, EBITDA by more than 1.7x and accelerate expansion into new territories, which we believe would significantly increase shareholder value, marking the dawn of an exciting era in this space.”, commented Mr. Jai Malpani, Managing Director, Imagicaaworld Entertainment Limited

Recently, the company announced financial results for the quarter ended December 2023 with the basic business indicators such as operating revenues and after-tax numbers showing favourable movements. 

The former rose from Rs 35 crores during Q2FY23-24 to Rs 67 crores during Q3FY23-24, and the bottom-line numbers, keeping the timeframe the same, transitioned from a loss of Rs 57 crores to a profit of Rs 4 crores.

Keeping a purview of one year, the company’s stock delivered multibagger returns of approximately 123 percent to its stakeholders, viz, if someone had invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 2.23 lakhs. 

Imagicaaworld Entertainment Limited is engaged in the business of developing and operating theme-based entertainment destinations in India including water parks, theme parks, and associated activities including retail merchandising and food and beverages. Its operating segments include tickets, merchandise, food & beverage, etc. 

Written by Amit Madnani 


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