ICICI Direct has given Buy recommendation for Wonderla Holidays with a target price of Rs. 430 in its research report issued on Aug 30, 2022

ICICI Direct’s research report on Wonderla Holidays

Wonderla Holidays is engaged in the business of amusement parks and resorts. It has three operational parks, one each in Kochi, Bengaluru and Hyderabad that were established in 2000, 2005 and 2016, respectively. The Bengaluru park also has a resort with four banquet halls and 84 rooms. The park business is seasonal in nature with higher footfalls in June and December quarters corresponding to summer break and festive season, respectively • The company is in discussions with the Odisha government to set up a park in Bhubaneswar on an asset-light model, where land will be taken on lease and the total cost for setting up the park will be ~Rs 100 crore.

Outlook

We remain positive on the company and maintain our BUY rating. We value the company at Rs 430 i.e.21x FY24E P/E).

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