You should check 1. amount of cash generated over 10 years 2. amount of cash deployed in existing parks as maintenance capex.
Regarding cash invested in new parks, that is how growth comes. They have plan to expand 1 park post chennai every 3-4 years based on internal accrual.
Let us assume after 10-15 years, with 7 parks, they feel they do not have much potential to grow (let us call it product line growth, volume and price based growth can still be intact, in price - direct sella and cross-sell avenues still intact), then , as per current calculations, 30% of CFO is sufficient for maintenance capex.
This is just regarding capex. I had similar and many such doubts which got clear to soem extent with further research. I believe until and unless one does not go through last 5 years of annual reports and 2 years of concall transcripts which at least has answers to all these questions, it would be difficult to build conviction.
The new rides you see in Kochi is happening after 15 years when mgmt has realized that footfalls have decreased due to being too old. I think, every 5-10 years, as per current pricing , there can be a approx 30 crore capex to introduce new rides.
A quantitative analysis of all such numbers with reasonable assumptions post last 8-10 concall transcripts to get some sense of assumptions would give a better picture.
Personally, i felt it is to some extent costly at current price, almost 20-25% (without factoring in any future utilization of additional land.
Will share my excel working . Need to to search it
Disc : Invested and intend to accumulate with 20-30% correction. This is not a stock recommendation and one must do their own research. Views might be biased