Purchase Wonderla Vacations; goal is Rs 1085 Sharekhan

In its research report dated May 17, 2024, Sharekhan, who is optimistic on Wonderla Holidays, advised a buy recommendation on the stock with a target price of Rs 1085.Wonderla Holidays research report by Sharekhan Wonderla Holidays Limited (WHL) experienced a soft Q4FY24 due to the high base of Q4FY2023 and early school examinations in several important states that affected group foot traffic; greater labor costs resulted in reduced high EBIDTA margins. Visits to the old park will increase by 4%–5%, while ARPU will rise by 10%. In the first year of operation, Odisha Park is expected to bring 4-5 lakh extra visitors with an ARPU of Rs. 800-850 per visit. It is anticipated that the operationalization of Odisha Park will result in reduced EBIDTA margins in FY25.Prospects But over the medium to long term, the same will get better. The stock is trading at 18x, 13x, and 18x its respective FY2025E and FY2026E EV/EBIDTA. We retain Buy with an unchanged PT of Rs. 1,085 since the company is likely to build 3–4 additional parks over the next 5 years, continuing the growing pace.

Disclaimer: Moneycontrol.com's investing gurus, brokerage firms, and rating agencies offer their own opinions and suggestions; the website's management does not share these viewpoints. Users are advised by Moneycontrol.com to consult with qualified professionals before making any financial decisions.