Sharekhan has given Buy recommendation for Wonderla Holidays with a target price of Rs. 270 in its research report issued on Aug 11, 2021
Sharekhan’s research report on Wonderla Holidays
Q1FY2022 performance was affected by disruption caused by second wave as all three parks were non-operational from mid-April due to state-level restrictions. WHL registered revenue of Rs. 4.4 crore and a loss of Rs. 13.3 crore. The Hyderabad Park started operating from August 5, while the Bangalore park would start operating from August 12, the Kochi park might take some time as COVID-19 cases are rising in Kerala. With pent-up demand, WHL expects footfalls to improve once lockdowns ease in FY2022 (in-line with strong recovery seen in Q4FY2021) and aims footfalls to reach close to FY2020 in the next two years.
With a strong balance sheet and cash levels of Rs. 70 crore as of June 2021, WHL is well-placed to invest on improving footfalls in existing parks in the near term. We maintain a Buy on the stock with revised PT of Rs. 270.