Sharekhan has given Buy recommendation for Wonderla Holidays with a target price of Rs. 227 in its research report issued on Feb 03, 2021
Sharekhan’s research report on Wonderla Holidays
Wonderla Holidays (WHL) posted revenues of Rs. 5 crore in Q3FY2021 for minimal days of operations in Bangalore (from November 9) and Kochi Park (from December 20) with permitted capacity of 50% only on weekends. Initial response was good with average visitors to the Bangalore Park standing at 1500 per day and 1,227 for the Kochi Park (some days saw 4,000-5000 visitors). With higher pent-up demand, the company expects footfalls to improve hugely in FY2022, reaching close to FY2020 levels by FY2023.
With a strong balance sheet and cash of ~Rs. 90 crore as of December, WHL is well-placed to exploit opportunities in the entertainment industry. We maintain a Hold with a revised PT of Rs. 227.
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