Latest News
-
Rs 17.50/Share Dividend: Tata Mid Cap To Consider Dividend On April 29, LIC Stake 9.88% -
Upcoming Adani Stock Dividend: Midcap Cement Stock To Declare Dividend, Q4 Next Week; BUY For Rs 3,225 -
Elon Musk Postpones India Trip, Tesla's Indian Market Entry Delayed -
HDFC Bank Q4 Results: Net Profit Rises 37% To Rs 16,512 Cr; Rs 19.5 Dividend Declared -
Gold Prices: 10-Gram 24-Carat Rises Rs 8,010 Before Falling; Chennai Gold Price At Rs 75,110 -
Defence Stock Set To Become Cheaper, 1:5 Split Approved: Shares Zoom 406% In 1-Yr -
Indian Railways Announces Historic Increase in Summer Train Trips -
62-Yrs Old Fertilizers PSU Set To Recommend Dividend Rewards, Rises 78% In 1-Yr; Yield 4.49% -
Want To Be Debt Free? 5 Simple Ways To Repay Your Loan Faster -
1:2 Stock Split, Dividend 100%, Net Soars 52.56%: Engineering Stock Soars 1576% In 3-Yrs
Sharekhan Suggests Preferred Pick In Small Cap Space: Sees Travel Stock Rising, Buy
Sharekhan has recommended investors to buy Wonderla Holidays Ltd, small cap stock operating in Tourism & Hospitality sector. The analyst has assigned a target price of Rs 425 to Wonderla Holidays.
According to Sharekhan, "Wonderla's footfalls stood at 15.9 lakh in H1FY2023 (26% higher compared to H1FY2020). With strong footfalls during the festive/holiday season and higher footfalls during weekends, we expect Wonderla to achieve 26-27 lakh footfalls by the end of FY2023 (20%+footfalls compared to FY2020)." If you buy Wonderla Holidays shares now, you can get potential 19% upside. Check vital details below:
1. Wonderla Holidays Ltd Stock Performance & Return
The last trading price of the stock is Rs 357 apiece with an intraday dip of 2%. The stock's 52-week high is Rs 455 and 52-week low is Rs 196 apiece, respectively. The company has a market capitalisation of Rs 2020 crore. The stock has given 73% return in last 1-year and 45% return to investors in last 3-years.
2. Footfalls Likely To Touch 27 Lakh In Fy2023
Business has sustained the momentum in Q3FY2023 with strong footfalls during holidays and weekends (largely driven by walk-ins). The company reported footfalls of 16 lakhs in H1FY2023. With the sustenance of strong growth momentum, we expect footfalls to touch 27 lakhs in FY2023.
This, along with higher ARPUs (increased by Rs. 150 over FY2020 ARPUs), we expect revenue to reach Rs. 390 in FY2023. With defined strategies to drive footfalls and 7-8% increase in ARPUs, revenue is expected to post a CAGR of 15% over FY2023-FY2025.
3. Strategies In Place To Increase Footfalls In The Coming Years
In recent times, the company has enhanced its focus on improving the experience by arranging special events twice every month. Sunburn event in Kochi Park in September got strong response (achieved 3,000 footfalls on the day of the event; Rs. 60 lakh business on the day of the event).
The company is banking on the digital marketing strategy to gain strong traction in key parks and investing in new markets through tie-ups with tour operators in some of the key western markets.
4. Valuation
According to Sharekhan, "Wonderla's management is optimistic about the mediumterm outlook and expects consistent improvement in footfalls in the coming years. This will boost profitability with EBIDTA margin expected to recover to historical levels of 40% by FY2023 and will consistently improve in the subsequent years. Focus on the asset-light model of entering into new markets and improving the business model to international standards of 60:40 mix between ticketing and non-ticketing revenue provide a huge scope to grow in the coming years. The stock is currently trading at 12.3x/10.5x its FY2023E/FY2024E EV/ EBITDA. We maintain our Buy recommendation on the stock with an unchanged price target (PT) of Rs. 425."
Disclaimer
The stock has been picked from the brokerage report of Sharekhan. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.
