Tuesday, July 12, 2016

Wonderla Remains Bullish After Hyderabad Park Launch

Wonderla Holidays' stock closed today's trade marginally lower, but maintained its bullish uptrend, trading above the key 30-day and 50-day moving averages.

The leading amusement park operator's stock was already in a long-term uptrend, trading well above its 150-day and 200-day moving averages, after it opened its 3rd park in Hyderabad, and announced plans for a fourth park.

From India’s first imported reverse-looping roller-coaster, to its 1 MW of solar power generation facility, to its cashless RFID based transactions, everything is next-gen at Wonderla’s latest Hyderabad amusement park.

Built prudently on a Rs. 250 crore budget, the park which spans 50 acres, is the facility that will determine the medium-term fortunes of this dedicated amusement parks company.

Even with only two parks, its first one at Kochi and its second at Bengaluru, Wonderla had done well at the bourses, rising by 2.75 times its IPO price within just two years, on profits that were up by 50% over the same period.

Wonderla also comes across as strong in core metrics like Respect for Equity, Sales Growth, Profit Margin, Growth in Margin, and Return on Assets.

FY’16 revenue is up by nearly 13% while profit is up by over 18%.

While margins are likely to be under pressure in the short-term, due to the recent capital expenditure, the stock is expected to take it in its stride on rising footfalls in Bengaluru and Hyderabad, as well as higher ticket-rates.

NR Narayana Murthy’s Catamaran Ventures has recently upped its stake in Wonderla.

The company's next amusement park is being planned in Chennai.

Wonderla Holidays' Annual General Meeting (AGM) of shareholders is scheduled for August 1st.

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