Imagicaaworld Entertainment Ltd - Can this be a good turnaround?

My initial thoughts on IMAGICAA. Invite thoughts of people for healthy discussion:

Ahmednagar (Maharashtra) based Malpani group appears to have reasonably good reputation. Post their acquisition last year, there appears to be multiple triggers which makes it as a turnaround story. Key points are:

  • Company had accumulated losses of Rs 1800 cr before takeover
  • Malpani group through a SPV has infused equity of Rs 415 cr at Rs 15.29/ share. Lenders also got shares at same price for Converting their Rs 75 cr debt to equity
  • Further malpani have got redeemable pref shares convertible into equity for Rs 36.81/ share - On conversion this would result in further equity infusion of Rs 480 cr
  • Debt of Rs 572 cr to lender to be restructured
  • Malpani group has sold land worth Rs 106 cr which was there in company.
  • NW now stands at Rs 235 cr which was completed eroded at the time of takeover
  • FY 23 - CFO is positive Rs 117 cr
  • Asset value is books is Rs 800 cr, so P/B is 2.5 leaving good upside for asset churn for such capital intensive business.
  • They have recently taken Surat based theme park on O&M basis which would add ~Rs 8 Cr/pa. on bottom line of company and tone of their commentry appears that they would like to scale this in other locations as well.

I have position in stock at Rs 42/share. Views may be biased.


Interesting situation. However, without going into details, Wonderla which is very well run and a credible management, with better margins is available at 3000Cr, why not Wonderla instead?

Short term Imagica might get the advantage of tax due to accummalated loss, but soon it will normalize.

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