Views on Adlabs Entertainment (Imagica)

Team:

Happy Diwali Brothers!.

This stock is catching my fancy.(I haven't delved deeply into this). Th stock has crashed from 180/- (Institutional allotment) ~160/- (Retail Investor allotment) to around Rs 100-Rs 105/-. They have 2 theme parks (Imagica, Aqua Magic), a Hotel with 280 keys (160 now open). two more theme parks coming up in Kopoli (Snow Park and Adventure Park at Zero Capex), Residential township in the same premises over the next 3-4 years and negotiations underway in Hyd and NCR region for JV.

Footfalls are low now <0.5 Mn and most established players have footfalls of 8-12 Mn on Large theme parks. India has the capacity to build multiple such theme parks. Wonderla trades at a Mcap of ~1900 Cr and Euro Disney trades at ~Euro 1 Bn Mcap, where as Adlabs at 820 Cr. Wonderla has done very well because of its Debt free status, Adlabs has debt issues (not sure how the tenure / plan of re-payment etc). Just before diving in wanted to understand your perspectives!

Thanks!.