Stock jumps up to 7% after company reports 312% increase in net profit; Here are the details

Shares of Wonderla Holidays, India’s largest amusement park, gained 7.07 percent on Thursday’s early trades to reach an intraday high of ₹ 498.00 apiece after the company reported robust results for the quarter and year ended on March 31, 2023. 

Wonderla Holidays is primarily engaged in the business of amusement parks and resorts. Some of its other businesses include merchandise, cooked food and packaged food. It operates three amusement parks in Kochi, Bangalore and Hyderabad under the brand name Wonderla. 

In a recent press release, the company said that its footfall surpassed the pre-pandemic levels, resulting in double-digit revenue growth. Its resort recorded 49 percent occupancy in the latest quarter. 

The company’s footfalls increased to 8.04 lakhs in the January to March quarter (Q4FY23), as compared to 4.05 lakhs in Q4FY20. 

“The construction of our new park in Bhubaneswar, Odisha has begun, and the aim is to open it by 2025,” said Mr Arun K Chittilappilly, Managing Director, Wonderla Holidays, while talking about the future outlook of the company. 

The company reported a profit of ₹ 35.05 crores in Q4FY23, indicating an increase of 312.35 percent as compared to ₹ 8.50 crores reported in the corresponding quarter last year (Q4FY22). Its revenue climbed 69.60 percent to ₹ 98.59 crores in Q4FY23 as compared to ₹ 58.13 crores in Q4FY22. 

For the entire year (FY23), Wonderla Holidays’ net profit stood at ₹ 148.90 crores, up 106.37 percent against a loss of ₹ 9.48 crores reported in the previous year (FY22). It registered a revenue of ₹ 429.23 crores in FY23 against ₹ 128.60 crores in FY22. 

The company’s board has recommended a dividend of ₹ 2.50 per equity share with a face value of ₹ 10 each. 

Wonderla Holidays is a small-cap company with a market capitalization of ₹ 2,631 crores. Its shares were trading at a price-to-earnings ratio (P/E) of 21.51, which is significantly lower than the industry P/E of 33.89, indicating that it might be undervalued as compared to its peers. 

The company’s promoters hold a 69.74 percent stake in it followed by retail investors with 21.71 percent, foreign institutions with 5.69 percent and mutual funds with 2.86 percent. 

Written By Simran Bafna 

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