Wonderla Holidays – Proxy on Growing Spending Power

Reading Time: 3 minutes

Wonderla Holidays Limited (Wonderla) is a leading amusement park operator in India. The company operates three amusement parks in Kochi, Bangalore, and Hyderabad. Wonderla is known for its thrilling rides, water slides, and family-friendly attractions. The parks are also known for their cleanliness and safety standards.

1 year stock performance, with key stats in INR

Company Overview

Wonderla was founded in 2000 by Mr. Kochouseph Chittilappilly. The company started its operations with a single amusement park in Kochi. Over the years, Wonderla has expanded its operations and now operates three amusement parks and one resort in India. Wonderla has a strong focus on customer satisfaction.

Industry Outlook

The Indian amusement park industry is expected to grow at a CAGR of 15% over the next five years. This growth is expected to be driven by the following factors:

Increasing disposable incomes: The disposable incomes of Indians are increasing, which is leading to increased spending on leisure and entertainment.
Growing middle class: The Indian middle class is growing rapidly, which is creating a larger customer base for amusement parks.
Rising urbanization: The Indian population is becoming increasingly urbanized, which is leading to increased demand for amusement parks and other recreational activities

Investment Thesis

Wonderla is a well-established company with a strong track record of growth and profitability. The company is well-positioned to benefit from the growth of the Indian amusement park industry. Wonderla also has a number of competitive advantages, such as its strong brand presence, loyal customer base, and high-quality rides and attractions

How GDP of 3 states is equal to that of 13 | India News - Times of India — The Southern states have one of the highest GDP/ Capita among cluster of states in India, this would aid Wonderla’s growth

Financial Performance

Wonderla has a strong track record of financial performance. The company’s revenue has grown at a CAGR of 17% over the past 3 years (since covid-19 lockdown). The company’s profit after tax has grown at a CAGR of 45% over the same period.

They had one of the strongest quarterly revenues in Q1 FY24 at 185 Crore. TTM the company has recorded one of their strongest ever revenue numbers at 463 Crores

Valuation

Annual PAT for FY23 was 149 Crores, where as they have generated PAT 84 Crore for Q1FY24. This implies a PAT of 196Cr for FY24, valuing the company at 23x PE (f).

The company has historically traded at a median PE of 23x.

Risks to Consider

The following are some of the risks associated with investing in Wonderla:

Cyclical industry: The amusement park industry is cyclical. This means that the company’s performance could be affected by economic downturns.
Competition: Wonderla faces competition from other amusement park operators in India.
Seasonality: The company’s revenue is seasonal, with the highest revenue generated during the summer holidays and on weekends. (June Qtr)

Wonderla is a well-established company with a strong track record of growth and profitability. The company is well-positioned to benefit from the growth of the Indian amusement park industry. Wonderla also has a number of competitive advantages, such as its strong brand presence, loyal customer base, and high-quality rides and attractions.

Wonderla is a compelling investment opportunity for investors looking for exposure to the growing Indian amusement park industry.

Liked this story and want to continue receiving interesting content? Watchlist Craving Alpha’s smallcases to receive exclusive and curated stories!

Explore Tiny Titans smallcase here

Explore Now

Disclaimer: Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The content in these posts/articles is for informational and educational purposes only and should not be construed as professional financial advice and nor to be construed as an offer to buy/sell or the solicitation of an offer to buy/sell any security or financial products. Users must make their own investment decisions based on their specific investment objective and financial position and use such independent advisors as they believe necessary.

Shivani Shah

Content & marketing @smallcaseHQ The content in this article is purely the author’s personal opinion and is for informational and educational purposes only. It should not be construed as professional financial advice and nor to be construed as an offer to buy /sell or the solicitation of an offer to buy / sell any security or financial products. The views and opinions stated in the content belong to the author. Smallcase Technologies Private Limited does not uphold nor promote any of the views / opinions.

India’s 6G Vision: A Quest for Technological Dominance

Swinging with Success: The Tale of a Swing Trader

Cancel reply

Dislaimer: This platform is intended for informational purposes only and is not intended to provide investment advice. The stock prices displayed are delayed and may not reflect the most current market conditions. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. You can also consider consulting a financial advisor before making any investment decisions. Smallcase Technologies Private Limited shall not be responsible for any losses that may occur as a result of using this platform.

The views expressed in this article are those of the author and do not necessarily reflect the views of Smallcase Technologies Private Limited (STPL) or any of its associates. The information provided in this article is for educational and informational purposes only. Investors are responsible for their investment decisions and are responsible to validate all the information used to make the investment decision. Investors should understand that his/her investment decision is based on personal investment needs and risk tolerance, and performance information available on here is one amongst many other things that should be considered while making an investment decision. Past performance does not guarantee future returns.

Investments in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The examples and/or scurities quoted (if any) are for illustration only and are not recommendatory.

The content and data available on the website, including but not limited to index value, return numbers and rationale are for information and illustration purposes only. Charts and performance numbers do not include the impact of transaction fee and other related costs. Past performance does not guarantee future returns and performances of the portfolios are subject to market risk. Data used for calculation of live returns and other information is provided by exchange approved third party vendors and has neither been audited nor validated by the Company. Detailed return calculation methodology is available here. Detailed volatility calculation methodology is available here.

The user agrees to assume complete and full responsibility for the outcomes of all of his/her investment decisions that he/she makes, including any direct, indirect, incidental, consequential, special, punitive or any other losses/damages if any that may be incurred by him/her. Smallcase Technologies shall not be responsible or liable for any direct, indirect, incidental, consequential, special, punitive or any other losses/damages arising out of the recipient's investments. For disclosures related to Smallcase Technologies Pvt Ltd, please visit this page .