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Wonderla soars 10% as Chennai project gets TN government's clearance

The grand vision for this project involves an investment of approximately Rs 400 crore, spanning across 62-acre expanse in Illalur village

Wonderla

Wonderla

SI Reporter Mumbai

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Shares of Wonderla Holidays (WHL) hit a record high of Rs 887.70 as they soared 10 per cent on the BSE in Wednesday's intraday trade after the company got the state government clearance for its Chennai project.

The stock surpassed its previous high of Rs 832.15 touched on October 9, 2023. In the past six weeks, the stock has zoomed 46 per cent.

"The company has successfully obtained all the necessary approvals/ clearances/ NOCs from the Government of Tamil Nadu for its Chennai Project and, thus, is poised to commence the construction of the Project," it said in an exchange filing.

WHL is set to unveil an amusement park located 45 kilometers away from Chennai, nestled along the Old Mahabalipuram Road. It involves an investment of approximately Rs 400 crore, spanning across the 62-acre expanse in Illalur village, within the Thiruporur taluk of Chengalpet district, the company said.

The upcoming amusement park promises to be an addition to the company’s expansion plans, offering recreational experience to visitors.

Wonderla Holidays operates three Amusement Parks along with a Resort at Bangalore Park. The company had signed an agreement with the Government of Odisha for leasing land of 50.63 acres towards development of amusement park project in Kumbarbasta Village, Khorda District, Bhubaneswar, Odisha, on June 29, 2022.

WHL demonstrated improvement in footfalls in FY23, supported by pent-up demand following the pandemic, and its multiple steps to attract footfalls such as focussed marketing campaigns, thematic events and attractions. Moreover, the company was able to improve on its Average Revenue Per User (ARPU) during FY23 and Q1FY24, supported by both ticket-price hikes as well as focussed efforts to improve non-ticket revenues.

"Given its established position in the Indian amusement park industry and continued strong demand in the market after the pandemic, WHL is expected to sustain these improvements going forward as well, translating into healthy growth in revenues and earnings. In addition to the healthy operating margins of 49.0 per cent in FY23, and 63.3 per cent in Q1FY24, the company’s nil debt position (excluding lease liability and vehicle loan) and healthy cash and liquid investments of Rs 256.0 crore as on March 31, 2023, offers further comfort to its financial risk profile," said rating agency Icra.

Despite having sizeable capex plans over the near to medium term for two upcoming parks in Bhubaneswar (Odisha) and Chennai, the company is expected to maintain its healthy financial risk profile and comfortable capital structure, supported by its healthy cash accruals and available liquidity, it added in its rationale.

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First Published: Oct 25 2023 | 11:29 AM IST

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