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" WONDERLA "
"IFB INDUSTRIES"

 

Wonderla is very good stock because of amusement park has unique position of moat because of heavy capital investment, land, game rides etc. IFB INdustries is making washing machines, A/c and consumer goods where too much competion is there from Samsung, LG, Videocon etc IMHO. So if its choice between two stocks Wonderla is better stock IMHO.

 

source:
https://www.moneycontrol.com/news/i...estment-opportunity-ajcon-global_1071952.html

for learning about stock purpose old post
Wonderla IPO - good investment opportunity: Ajcon Global Ajcon Global has recommend investors to subscribe to Wonderla Holidays IPO issue as investment by anchor investors instills confidence and strong promoter quality with the company being a proxy for India's consumption story with rising middle class disposable income makes us convince that it presents a compelling investment opportunity.

Ajcon Global's IPO note on Wonderla Holidays IPO "Wonderla Holidays Ltd (Wonderla), founded in 2002, is one of the largest amusement park operators in India. India's amusement park industry is estimated to be worth Rs. 7000 crore from the current Rs. 2600 crore. It has grown at ~17 percent CAGR over the past few years. The company currently owns and operates two amusement parks under the brand name ‘Wonderla' situated at Kochi and Bangalore and are in the process of setting up its third amusement park in Ranga Reddy District of Andhra Pradesh for which it has acquired 49.57 acres of land. WHL amusement parks offer a wide range of water and land based attractions catering to all age groups. It has 22 water based attractions and 33 land based attractions at Wonderla Kochi, situated on 93.17 acres of land and 20 water based attractions and 35 land based attractions at Wonderla Bangalore, situated on 81.75 acres of land. The company also owns and operates a Three star leisure resort beside an amusement park in Bengaluru under the brand name ‘Wonderla Resort', comprising of 84 luxury rooms which has been operational since March 2012. The Company has been present in the industry for the past 13 years with two amusement parks. The company's cost of establishment is lower than the establishment costs in today's market, which gives Wonderla flexibility to keep entry fees competitive. To have a cost competitive advantage, Wonderla has developed an in-house manufacturing facility in Kochi to construct rides used in its amusement park. According to the company, the cost of in-house manufacturing a ride is almost a third of that of buying it from outside. Wonderla Holidays has alloted shares to three anchor investors at Rs 125 per equity share, at higher end of issue price band of Rs 115-125. The three anchor investors are HDFC Trustee Company (HDFC Mutual Fund), Aditya Birla Private Equity Trust and TVS Shriram Growth Fund (TVS Capital).

At the upper band of the issue price, WHL is valued at 17x – 9MFY14 Annualized EPS/share of Rs. 7.33/- at upper end of the price band. With due consideration to factors like a) well established player in South India with early mover advantage, b) decent revenue CAGR of 21.8 percent over the period FY09- FY13, c) robust EBITDA margins of over 45 percent, d) negative working capital business as most payments are received upfront, e) good operating cashflow with strong balance sheet, f) investment made by anchor investors like HDFC Mutual Fund, Aditya Birla Private Equity and TVS Shriram Growth fund fosters confidence in the Company. However, concerns like ongoing litigation on land (14.7 acres) in Hyderabad which would delay the execution of the project, completion from new and existing players, risk of accidents or mishaps at any of the parks may affect the performance of the company. Although the company has been aggressive in the pricing the issue but we recommend investors to “SUBSCRIBE” the issue as investment by anchor investors instills confidence and strong promoter quality with the company being a proxy for India's consumption story with rising middle class disposable income makes us convince that it presents a compelling investment opportunity", says Ajcon Global research report. Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

 

It's a good opportunity for traders to invest in this script for a big profit.