hello, I have not done deep dive on imagica but on like to like basis I found their past in terms of financial performance as sub-par.
Gaurav Sondh as VP sales (from zomato back ground) is a welcome step. Co is planning its move to a big league
2 Likes
As far as I understand … these businesses are high capex oriented, so funding big projects needs experience and good management which I am not sure Imagica has… Anyway I will keep invested in Wonderla.
Unless wonderla mgmt mess up ,wonderla fits in big will become bigger and hdfc bank is next hdfc bank.
Smaller park may give better return in short team in percentage how ever no dpubt wonderla will maintain its leadership
Better to review ita very quarter and take decision accordingly
Have strong conviction on Wonderla, great execution track record and solid management. Somehow they know the rule of the game and generating profits from year 1 when all other players were struggling.
Close analogy is Indigo who has developed a moat in Aviation space. With strong moat (low cost, own slides, strong brand, ancillary F&B income, zero debt), Wonderla has established itself an indispensable player in an industry which has structural multi decade growth drivers in place (rising aspirations and per capital income, underpenetrated etc).
I have added position today on overall broader market correction.
Contra view or investment thesis are welcome.
Disclaimer: Invested and biased
7 Likes
Concall Summary:
- Results are inline with projections of 3-5% footfall growth and 15-18%.
- Company is strengthening the management team by hiring and ESOPs.
- Bhubaneswar park will start by mid May-June with ARPU of 1000.
- Chennai park major work has not started. Completion by Q3 25-26
- EBITDA% is down by 5% and will continue to fall for the next 2-3 years as new parks come in and manpower increases. Steady state EBITDA is 50%.
- 10% of revenue goes back to existing park as CAPEX for maintenance and new attractions
Prediction: Next year revenue growth should be 30% (20% from existing parks + 10% from bhubaneswar).
Disclaimer: Invested and biased
5 Likes
They have an edge as they started early and grown in a consistent manner. We have very less competitors in this segment and to grow to this level others will take time.
I have invested with great level of conviction.
2 Likes
Yet again another trip to Wonderla Hyderabad, few changes i would like to highlight -
- Crowd was low compared to my earlier visits given it was a weekend and also company running discounted ticket prices of Rs 929 as compared to actual price of rs 1600. Hyderabad is a tough market given its low cost of living where people are more conservative in spending, it is due to which footfalls are falling given the steep rice in ticket prices from 1100 to 1600 in last two years.
- F&B offerings are getting premiumized and have been increased by 10-30 percent, even mineral water which was bisleri(rs 20 for 1liter) earlier have been changed to smart water(rs 60 for 750 ml)
- Company have been running lot of discounted offers in this lean period to get the footfall back.
- Majority of visitors are tourist rather than locals.
- New rides keep getting added here and there but are of low impact.
- DJ from 6 to 730 pm on every 2nd and 4th saturday is a new addition for public entertainment.(customer delight)
All in all a good experience but footfall is a dampener. Fingers crossed for the peak summer season.
6 Likes
I see your previous trips are around May and December months. Usually Feb and March will be mini off season for public crowd. School and college exams are around the corner. This is expected.
5 Likes
Low footfall can be due to exam season
Wonderla Holidays Ltd
Daily chart
The stock is testing the resistance between 950-1000 zone, main highlights
- ARPU for the quarter at INR1,256, 6% increase YoY
- Non-ticket revenue contribution increased to 35% for the quarter
- Expansion plans on track with parks in Orissa and Chennai
- Signed MoU with Gujarat government for tourist destination
- Plans to open Bhubaneswar Park in latter half of May
- Chennai Park expected to open in second or third quarter of FY '26
Near term triggers ( ~ 1 year)
- Expectation of 5% footfall growth in existing parks and 5-6 lakhs footfall for Bhubaneswar Park in FY '25 - around 69 Cr revenue
- Plans to double revenues from resorts in Bangalore
The stock has been trading at an EVEBITDA of 20 which seems fair to me but above the 5 year median of 12.3
RISKS
This year we are expected to have shortage of Kaveri water and this might lead to protest around the Mysore highway ( happened previously link)
5 Likes
Does this ban applies for wonderla Bengaluru Water Crisis: Use Of Drinking Water Banned In Swimming Pools, Hefty Fine Imposed | Bengaluru News, Times Now
Any idea where do they get water for banaglore theme park from?
2 Likes
In my understanding they have inhouse resources and their net usage of water will be minimal as they recycle / Purify the water via plant installed. Hence Water shouldn’t be a problem.
2 Likes
Yesterday the Company’s Board of Directors has approved looking into setting up an Adventure Park near their Bangalore Resort. They will be looking at all the financial viabilites.
3 Likes
It has consolidated well around 950-975 and any positive commentary around , announcement of new parks , opening as per committed timelints of in progress parks , increase in footfalls and increase in ARPU can trigger next round of upside .
1 Like
Fast and Furious!.. Park completed in a record time within 1 year! Bhubaneshwar park opening on 24th May.
7 Likes
Wonderla management has great vision. Clean balancesheet with no Debt. Huge scope to grow from Here. Sector is in Tailwind.
6 Likes
Thanks for that great update… want to accumulate more
Wonderla chennai location updated in google map. In satellite view could see the work in progress. Expected to complete on June 2025.
4 Likes
Not great results.
| Results | 31-Mar-24 | 31-Mar-23 |
|---|---|---|
| Revenue | 9,968.00 | 9,859.00 |
| Other Income | 514.00 | 1,403.00 |
| Expense | 7,454.00 | 6,540.00 |
| PBT | 3,028.00 | 4,722.00 |
| PAT | 2,265.00 | 5,655.00 |
| EPS | 3.98 | 6.20 |
==============
| Growth | QonQ | YonY |
|---|---|---|
| Revenue | -19% | 1% |
| Other Income | -14% | -63% |
| Expense | -6% | 14% |
| PBT | -40% | -36% |
| PAT | -39% | -60% |
| EPS | -40% | -36% |
==============
Company says it was a challenging quarter. We don’t know what other income comprises off. Most likely it would have been FnB (?)
Thoughts from others?
2 Likes