Wonderla is entering the high ROCE capital light phase now. Their competitive advantage keeps increasing in size. They manufacture their parks much cheaper than anyone else. At the moment is fairly priced for 12 % growth in price but undervalued for 20 % plus growth. Multiple are reasonable. It is played on a consumption theme. They can maintain single-digit footfall plus a 5 % (inflation) price increase that gives an easy 12 to 15 % cashflow increase. Plus growth will come from Bhuvaneshwar and Chennai. We are also underestimating the pricing power that Wonderla has (even management is underestimating ). The ability for people to spend is way higher.
I was buying at 200 and had no competition last year. Of course, at this price, you need to get growth assumptions right but in my view is still not expensive.
Disc: Invested from 2017 at 250 Rs, so my views can be biased.
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