Wonderla Holidays Research Report By Axis Capital
Wonderla Holidays Research Report By Axis Capital | |
Company: | Wonderla Holidays |
Brokerage: | Axis Direct |
Date of report: | March 22, 2016 |
Type of Report: | Initiating Coverage |
Recommendation: | Buy |
Upside Potential: | 15% |
Summary: | A wonderful portfolio Investment Entertainment |
Full Report: | Click here to download the file in pdf format |
Tags: | Axis Direct, Wonderla Holidays |
A wonderful portfolio Investment Entertainment – Entertainment – Entertainment!!! Striking an apt work – life balance meant a family vacation this Christmas. Dubai in December turned out to be fitting time in terms of weather and school vacation. A visit to Ferrari World at Abu Dhabi was an absolute delight. It kept my wind working seeing the long queue at almost each and every ride, on what are the options to own such a business model. I started screening amusement parks at global levels like Disney, Universal studio, Aquaventure and the like. However on second thoughts, India is having the best demography in the world, the average 25 year old Indian believes in Work hard and Party harder philosophy. The options in India are largely for Adlabs Imagica, Aqua Imagica, Essel World, Water Kingdom but a relatively quite name was of Wonderla. Wonderla is run and managed by V-guard group of companies, a group which is balanced and treads on cautiously being optimist. Wonderla set up its first park in Kochi in 2000, next in Bangalore (2005) and is poised to open its new park in Hyderabad in April, 2016. Wonderla took 5 years to build the second park and 7 years to build its resort but is going to set up its third park in just 4 years span in Hyderabad. We believe post commissioning of the fourth park in Chennai in 2019, Wonderla will generate cash flows to set up 1 park every 3 years largely from internal accruals. This single and most important factor makes us bullish on Wonderla, details of our work and findings can be read in the report. A sustainable business model, run by excellent management, generating cash flows for growth, with high RoE and moderate valuation is a perfect recipe for portfolio investment. |
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