Z-Tech India- a monopoly in sustainable theme park?

Sustainable theme park business:

  • existing 6; upcoming 10 [revenue contribution : 60-65%]
  • only player
  • PAT: 20%+
  • strong H2 due to rains in H1
  • business model: EPC revenue; revenue sharing with Govt [ticket, F&B, shop rental, adventure activity, retail]
  • 80-90% parks- revenue sharing मॉडल
  • 20 years contract [investment is recovered in 1-1.5 years]
  • Building sports park in UP [upcoming games like pickleball which is a rave in US]

25% margins in waster water management- sustainable [Mazda- compete]

Vision of the co- sustainability [sustainable parks, waste water management] & geotechnical business [designs & constructs infrastructure such as flood protection systems or river embankment systems]

Triggers:

  • upcoming 10 theme parks [starting oct to march- each month one park would open]
  • 20 tenders for theme parks [to win majority- by dec’24]

Industry triggers [theme park]:

  • Typical theme park costs 20 times more than sustainable theme park
  • Govt pay back period < 1 year [eg. waster to wonder Delhi park]
  • Ticket is barely Rs 100 vs Rs 1000 for typical theme park
  • States / municipalities get better swachchh rating if they do waster to art [soft trigger]

Guidance:
Revenue FY 25: 120 cr [vs 67 cr in FY’24]
PAT FY’25: 20 cr [vs 8 cr FY’24]
FY’26 [soft guidance]: follow growth of FY’25 [but min 50-60% growth]
order book [end of FY’25]- 200 Cr+

To be monitored:

  • Optionality:ad revenue in park
  • size of TAM for theme park
  • International expansion to increase TAM [higher margin]- H2 FY’25 strategic team to be in place
  • Parks won on revenue sharing model
  • Govt receivables

Disc: Invested

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