Buy Wonderla Holidays, target Rs 377: Religare Securities

Religare Broking has a buy call on Wonderla Holidays Ltd. with a target price of Rs 377. The current market price of Wonderla Holidays Ltd. is Rs 336.15 Time period given by the brokerage is a year when Wonderla Holidays Ltd. price can reach defined target. Wonderla Holidays Ltd., incorporated in 2002, is a midcap company with a market cap of Rs 1899.27 crore.

Investment rationale by Religare Broking
Wonderla Holidays Ltd posted subdued performance for Q4FY18, on back of decline in footfalls. Net revenue declined by 7.5%, whereas EBITDA and PAT margin expanded to 27.8% and 6.7%, respectively driven by improved operational efficiency. Demand is likely to improve in coming quarters due to drop in tickets price, adding of new rides in the amusement parks and by more food & beverage offerings. We maintain buy with revised target price of 377.