NSE:Wonderla - I am wondering....where is stock going 🎡

Wonderla Holidays is engaged in the business of Amusement Parks and Resort.

KEY POINTS
IPO and promoter group
Wonderla came up with their IPO in April 2014 to raise 181 cr. which went into funding their upcoming amusement park in Hyderabad, that was operationalized in 2016 . The company was setup by Kochouseph Chittilappilly in 2000, the same promoter group also founded V-guard brand of stabilisers and runs V-Guard Industries/

Amusement Parks
Wonderla currently has three operational parks, one each in Kochi, Bengaluru and Hyderabad established in 2000, 2005 and 2016 respectively. The Bengaluru park also has a resort with 4 banquet halls and 84 rooms

Average revenues over the last 5 years (FY15 to FY20) have been ~79 cr. in the Kochi park and ~116 cr. in the Bangalore park. As Hyderabad park was operationalized only in FY17, revenues have grown from ~57 cr. in FY17 to ~74 cr. in FY20.

Upcoming Parks and expansions
A fourth park is being setup in Chennai at a cost of over 300 cr. The company is currently under discussion with the Chennai state government to resolve certain tax issues, after which construction activities will resume. The park has received exemption on entertainment tax for 5 years from the date of commencement of commercial operations or 01-10-2021 (whichever is earlier).

Wonderla is also in discussion with the Odisha state government to setup a park in Bhubaneswar on an asset-light model, where land will be taken on lease and the total cost for setting up the park will be ~100 cr.

Wonderla also plans to build a resort in Hyderabad similar to the one in Bangalore

Revaluation of reserves
Land was revalued in FY17 which caused equity reserves to go up from ~346 cr. in FY16 to ~684 cr. in FY17.

Miscellaneous
- Wonderla manufactures and maintains their rides in-house lowering cost of construction compared to if they were imported
- Wonderla spends 8-10% of their revenues in advertisement and sales promotions
- Wonderla's business is seasonal in nature with higher footfalls in June and December quarters corresponding to summer break and festive season respectively.