Mehabe score: 2 G Factor: 3 Piotski Score: 5 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 5.
Description
Wonderla Holidays is engaged in the business of Amusement Parks and Resort.
Main 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.Site:WONDERLA
Market Cap:
Rs 1,199 cr
Price:
211.0
Trading pe:
x
Book-value:
147/share
Div yield:
0.85 %
Earning yield:
-5.45%
Face-value:
10.0/share
52week high:
235.00
52week low:
122.00
Technical Analysis
Stock trades at 211.0, above its 50dma 197.09. It also trades above its 200dma 191.76. The stock remains bullish on techicals
The 52 week high is at 235.00 and the 52week low is at 122.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– is almost debt free.
– has been maintaining a healthy dividend payout of 18.69%
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 8.29% over past five years.
– has a low return on equity of 5.76% for last 3 years.
-‘s cost of borrowing seems high
Competition
– The industry trades at a mean P/E of 0.0x. Wonderla Holiday trades at the industry’s max P/E of 0.0x. WONDERLA trades at a P/E of x
– Industry’s mean G-Factor is 3.0 while the mean Piotski score is 5.0. WONDERLA has a G-Factor of 3 and Piotski scoreof 5.
– Average 1 month return for industry is 17.2%. The max 1- month return was given by Imagica. Enter.: a return of 49.12 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 33.3 cr compared to Rs 42.42 cr for period ended Mar 2020, a fall of 21.5%
Operating Profits reported at Rs 2.55 cr for period ended Mar 2021 vis-vis 5.07 for period ended Mar 2020 .
Operating Margins contracted -429.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs -0.86 compared to Rs -2.61 for previous quarter ended Dec 2020 and Rs 0.28 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 38.0 cr for period ended Mar 2021 vis-vis sales of Rs 271.0 cr for the period ended Mar 2020, a fall of 613.2%. The 3 year sales cagr stood at -48.0%.
Operating margins shrank to -74.0% for period ended Mar 2021 vis-vis 39.0% for period ended Mar 2020, contraction of 11300.0 bps.
Net Profit reported at Rs -50.0 cr for period ended Mar 2021 vis-vis sales of Rs 65.0 cr for the period ended Mar 2020, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 6.0% compared to 6.0% over the last 3 Years. – The stock has given a return of 50% on a 1 Year basis vis-vis a return of -14% over the last 3 Years. – The compounded sales growth on a TTM bassis is -84% vis-vis a compounded sales growth of 1% over the last 3 Years. – The compounded profit growth on a TTM basis is -178% vis-vis a compounded profit growth of 11% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 11.86% vis-vis 11.79% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 17.55% vis-vis 17.7% for Dec 2020
Conclusion
– is almost debt free.
– has been maintaining a healthy dividend payout of 18.69% – has low interest coverage ratio.
-The company has delivered a poor sales growth of 8.29% over past five years.
– has a low return on equity of 5.76% for last 3 years.
-‘s cost of borrowing seems high
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 197.09 and is trading at 211.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
