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Hidden Gem - Wonderla Holidays (CMP – Rs570; M-cap – Rs3,615cr; Upside – 32%)

ICICIdirect Research 21 Nov 2025 DISCLAIMER

Wonderla Holidays (WHL) is one of the largest amusement park operators in India with over 20 years of operations in the business. The company has 4 amusement parks located in Kochi, Bengaluru, Hyderabad and Bhubaneshwar (comprising ~190 rides and 18 restaurants).
The company will open its 4th largest park in South India in the city of Chennai on 2nd Dec,25. The park will feature 43 rides across thrill, family, kids and water segments, with a daily capacity of 6,500 visitors.

WHL revenues are expected to grow at CAGR of 16% over FY25-28E driven by

  • 1) 4-5% footfalls growth in matured parks such as Bangaluru, Kochi and Hyderabad
  • 2) Incremental footfalls from new parks such in Bhubaneshwar, Odisha and Chennai, Tamil Nadu
  • 3) 5-6% growth in ARPU.

The company focuses on scaling up the park ARPU’s by increasing the contribution of non-ticketing revenues (F&B, apparels & accessories), which is currently 25% of ARPU’s vs. international ratio of 60:40 for ticketing : non-ticketing revenues.
EBIDTA margins will bottom-out in FY26. We expect EBIDTA margins to improve by 1000bps YoY bps over FY25-28E. Key drivers of EBIDTA margins expansion 1) Odisha & Chennai will break even by FY27 2) sustain footfall growth in the existing park and 3) improved mix of non-ticket revenues.
Efficient capital allocation helps the company to invest cash generated from existing park in developing new parks. The company is in talks with the state of Gujarat, Maharashtra, Punjab and Delhi to set-up new park. The company will focus on lease model to reduce capex cost from around Rs500-600 crore per park to Rs250-300crore per park.
Valuation and view: We expect WHL’s revenues and PAT to grow at CAGR of 16% and 27% respectively over FY25-28E. The stock has corrected by ~40% from its 52 week high and currently trading at 20x and 14x its FY26E and FY27E EV/EBIDTA (and at PE of 39x and 28x on FY26E and FY27E earnings). We believe it’s a good time to enter the stock considering medium term earnings growth visibility. We recommend Buy with a price target of Rs750. 

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