You are on page 1of 21

See

discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/292046958

Indias favourite amusement park operator


Wonderla is operating two of Indias biggest
amusement parks...
Article August 2015

CITATIONS

READS

49

1 author:
Vignesh Sbk
Karvy
7 PUBLICATIONS 0 CITATIONS
SEE PROFILE

Available from: Vignesh Sbk


Retrieved on: 25 November 2016

Aug 13, 2015


WonderlaAug
Holidays
Ltd
13, 2015

Consumer Discretionary - Recreation Facilities & Svcs

Wonderla Holidays Ltd


Bloomberg Code: WONH IN

BUY

India Research - Stock Broking

Wonder Land of Opportunities

Recommendation (Rs.)

Hyderabad & Chennai parks to kick start growth:

Target Price

CMP (as on Aug 12, 2015)

Hyderabad & Chennai Parks are expected to be operational by April 2016 &
December 2017 respectively. We expect footfall in Hyderabad park to be in the
range of 0.6-0.8 Mn in first year and in next couple of years, footfalls are likely to
reach 1 mn mark and ticket pricing to be similar to Bangalore park. Footfalls for the
existing parks along with Hyderabad park for the next couple of years is likely to see
CAGR growth of 17% during FY15-17E. Average Ticket Prices (ATP) are likely to
witness 10% annual growth.

Indian Amusement parks in nascent growth stage:

264.3
320.0

Upside (%)

21

Stock Information
Mkt Cap (Rs.mn/US$ mn)

14933 / 231

3M Avg. daily volume (mn)

0.1

52-wk High/Low (Rs.)


Beta (x)

Sensex/Nifty

0.9

27512 / 8349

O/S Shares(mn)

Indian amusement park industry is currently valued at Rs. 25 bn in 2015 and is


expected to grow at CAGR of 20% over the next five years to reach Rs. 60 bn.
We expect the footfalls to increase for theme parks in India, on the back of rise in
consumer discretionary spending and emergence of theme parks as entertainment
destination.

355 / 240

56.5

Face Value (Rs.)

10.0

Shareholding Pattern (%)


Promoters

71.0

FIIs

9.1

DIIs

2.0

Others

Valuation and Outlook


Wonderla is one of the leading amusement parks in India and industry is expected
to grow at CAGR of 20% in the next five years. Wonderla revenues are expected to
grow CAGR of 29% during FY15-17E and EBITDA to grow at CAGR of 29.5% during
the same period. Wonderla is currently trading 20.1x FY17E EPS & 11.1x FY17E
EBITDA and we value the company at 25x FY17E EPS and arrive at target price of
Rs.320 with an upside of 21% for holding period of 9-12 months with BUY rating.
Indian consumer discretionary stocks are currently trading at 29x FY17E EPS and
global amusement park players in Asia & USA are trading at 20x & 19x FY17E
EPS respectively. Considering the high topline growth and highest EBITDA margins
among its global peers, we feel the stock has potential on long term investment.

Key Risks

17.9

Stock Performance (%)


1M
Absolute

Relative to Sensex

3M

6M

12M

1 (12)

(7)

(4)

Source: Bloomberg

Relative Performance*
140
130
120
110
100

yyAccidents in the park.

90
Aug-14

yyDecline in consumer discretionary spending.

Nov-14

Feb-15

Wonderla

yyCapital intensive / land acquisition.

May-15

Aug-15

Sensex

Source: Bloomberg; *Index 100

Exhibit 1: Valuation Summary (Rs. Mn)


YE Mar (Rs. Mn)

FY13

FY14

FY15

FY16E

FY17E

Net Sales

1378

1536

1818

2085

3043

EBITDA Margin (%)

45.4

45.8

44.3

47.6

44.4

8.0

9.5

9.2

10.1

13.1

28.8

26.2

20.1

EBITDA

Adj. Net Profit


EPS (Rs.)
RoE (%)
PE (x)

626
336

28.0
33.1

703
399

26.6
27.8

805
506

14.2

993
570

14.1

1350

742

16.0

Source: Company, Karvy Research

For private circulation only. For important information about Karvys rating system and other disclosures refer
to the end of this material. Karvy Stock Broking Research is also available on Bloomberg, KRVY<GO>,
Thomson Publishers & Reuters

Analyst Contact
Vignesh S B K

040 - 3321 6271

vignesh.sbk@karvy.com

Aug 13, 2015


Wonderla Holidays Ltd

Company Background

Company Financial Snapshot (Y/E Mar)


Profit & Loss (Rs. Mn)
FY15

FY16E

FY17E

Net sales

1818

2085

3043

EBITDA

805

993

1350

Optg. Exp (Adj for OI)

1013

Depreciation

162

Interest

17

Other Income

102

Tax

223

PBT

Adj. PAT

1092

203

68

1693
285

41

729

850

1107

506

570

742

281

365

Profit & Loss Ratios


EBITDA margin (%)

44.3

47.6

44.4

P/E (x)

28.8

26.2

20.1

Net margin (%)

27.8

EV/EBITDA (x)

18.6

Dividend yield (%)

0.5

27.3
15.1

0.5

24.4
11.1

Indias favourite amusement park operator operating two of


Indias biggest amusement parks, Wonderla Bangalore and
Cochin. Wonderla Bangalore is over 82 acres of land and is
located just 28 kms from Bangalore. Wonderla Cochin is spread
over 93 acres located just 16 kms outside Cochin. Wonderla
Kochi has been set up in 2000 and Wonderla Bangalore was
set up in 2005. Many of the rides have been custom made
and imported from reputed international suppliers, making
them unique in India. Wonderla also has the best safety record
for parks of this size and are both ISO 14001 and OHSAS
18001 certified. Wonderlas latest venture is the Wonderla
Resort, an 84 room luxury resort spread over 1,00,000 sq. ft
near the amusement park in Bangalore. Wonderla is the only
park in India to use Reverse Osmosis Treatment Technology
for treating water in pools. The park has a full fledged water
quality control laboratory which carries out 90 rigorous tests
on a regular basis.

0.7

Source: Company, Karvy Research

Cash Flow (Rs. Mn)

Balance sheet (Rs. Mn)


FY15

FY16E

FY17E

Total Assets

3976

4376

4989

Current assets

2098

1452

837

Net fixed assets

1791

Other assets

87

Total Liabilities
Networth

Current Liabilities

175

4376

4989

110

88

289

Others

123

3978

3976

3564

Debt

2800

12

4031

241

15

4637

319

24

Balance Sheet Ratios


RoE (%)

14.2

RoCE (%)

20.3

Net Debt/Equity

0.0

Equity/Total Assets

0.8

P/BV (x)

4.1

14.1
20.8

0.0
0.9
3.7

Source: Company, Karvy Research

Exhibit 2: Shareholding Pattern (%)


DIIs
2.0%

16.0
23.8

0.0
0.9
3.2

PBT

Depreciation
Interest
Tax

Changes in WC
Others

CF from Operations
Capex

FY15

FY16E

FY17E

729

850

1107

17

162

(281)

(365)

(71)

(43)

(23)
562

959

(1400)

79

50

(2235)

1700

(87)

Dividends & Finance

(120)

Change in Cash

(179)

CF from Financing

647

(70)

(1220)

CF from Investing
Change in Debt

(91)

(371)

(1943)

Change in Equity

285

(252)

Investment
Others

203

1493

1000

(170)

(22)

(110)

(133)
345

943

(455)

(80)

(136)

(216)
288

Source: Company, Karvy Research

Exhibit 3: Revenue Segmentation - FY15 (%)

Others
17.9%

Bangalore
Resort 5.4

Kochi Park
39.2

FIIs
9.1%
Promoters
71.0%

Source: Company, Karvy Research

Bangalore
Park 55.4

Source: Company, Karvy Research

Aug 13, 2015


Wonderla Holidays Ltd

Amusement parks in India in nascent growth stage


Exhibit 4: India Amusement Park Industry
80

Indian amusement park industry is currently valued at Rs. 25 bn in 2015


and is expected to grow at CAGR of 20% over the next five years and is
expected to reach Rs. 60 bn. Amusement park footfalls are estimated at
58-60 Mn annually compared to 300 Mn & 165 Mn in US & Europe. We
expect the footfalls to increase for theme parks in India, on the back of rise
in consumer discretionary spending and emergence of theme parks as
entertainment destination.

60
60
40
20

25

2015
2020
India Amusement park industry Size ( In Bn Rs)

Source: Company, Karvy Research

Exhibit 5: Global Amusement Park Industry Market


share
Canada
2.0%

Global amusement park industry is valued at $29.5 bn in 2015 and is


expected to reach $32 bn in 2017. For amusement park industry, globally
2014 was good year with 4% attendance growth for the top theme parks.
US and Europe saw footfall growth of 2% and 3% respectively; and fastest
growing region was Asia with 5%.

Asia
Pacific
26.0%

EMEA
21.0%

Latin
America
1.0%

US
50.0%

Source: Company, Karvy Research

Exhibit 6: Region-wise Growth Rates (%)


8%
6%

Majority of the parks are located in United States and Europe where the
markets are attaining maturity stage. United States has approximately 400
parks with 300 Mn visitors and Europe has 330 parks with 165 Mn annual
visitors. Asia is the fastest growing geography and is expected to become
the largest market for the theme park industry in next 15 years.

6.3%

4%
2%
0%

2.0%

0.6%

US

EMEA

3.1%
Asia*

Global**
Theme parks

CAGR Growth rate 6 years


Source: Themed Entertainment Association (TEA), Karvy Research,
* Global 25 theme parks & others top 20,
** For Asia, CAGR growth rate for last 4 years

2008

223
60

123

138

215
117
58

58

2011
2012
Asia pacific -top 20

135

206
109

132
103

127

2010
EMEA Top 20

58

56

96

123

2009
United States Top 20

196

189

186
0

57

57

121

123

186

Exhibit 7: Annual Footfalls of Top Amusement parks (Mn)

2013
2014
Top 25 Theme parks Worldwide

Source: TEA, Karvy Research

Aug 13, 2015


Wonderla Holidays Ltd
Exhibit 8: Top 25 International Amusement Parks by Footfalls (Mn)
Rank

Amusement/Theme Parks

Location

2014

2013

Magic Kingdom at Walt Disney World

Florida

19.3

18.5

4.0

Disneyland

California

16.7

16.2

3.5

2
4
5
6
7
8
9

10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

Tokyo Disneyland

Tokyo Disney Sea

Tokyo, Japan
Tokyo, Japan

Universal Studio

Epcot at Walt Disney world


Disney's Animal Kingdom

Disney's Hollywood Studios

Disneyland park at Disneyland Paris


Disney's CA Adventure
Universal Studio

Osaka , Japan
Florida
Florida
Florida

Paris,France
California
Florida

Islands of Adventure

Florida

Ocean park

Hongkong

Lotte world

Seoul, South Korea

Hong kong Disney land

Hongkong

Everland

Universal Studio, Hollywood


Songcheng Park

Nagashima Island

Chimelong Ocean Kingdom


Europa, Park
Seaworld

Gyeongi-Do, South Korea


California

Hangzhou, China
Kuwana, Japan

Hengqin, China
Rust, Germany

Orlando, Florida

Tivoli Gardens

Copenhagen,Denmark

De Efteling

Walt Disney Studios park a Disneyland paris


Year 2015 - Wonderla Parks*

Year 2018E - Wonderla Parks*


Source: TEA, Karvy Research, *Just for comparison

kaatsheuvel,Netherland
Marne-la-valee, France

2 Parks (Bangalore & Kochi)


4 Parks (Bangalore, Kochi,
Hyderabad & Chennai)

17.3
14.1
11.8
11.4
10.4
10.3

9.9
8.8
8.3
8.1
7.8
7.6
7.5
7.4
6.8

17.2
14.0

% change attendance
0.5
0.1

10.1

16.8

10.2

2.0

11.2
10.1

2.0
2.0

10.4

(4.7)

7.1

17.0

7.5

4.2

8.5
8.1
7.4
7.4
7.3

3.0
0.0
2.8
1.4
1.1

6.1

11.0

5.8

(3.6)

5.0

4.9

2.0

4.5

4.2

5.8
5.6
5.5
4.7
4.4
4.2
2.3

4.2
-

38.3

5.1

(8.0)

4.1

6.0

4.5

6.6

(4.7)

4.0

Wonderla after commissioning its two new parks in Hyderabad and Chennai, along with its existing parks, footfalls are likely to
breach 4 mn footfalls annually which would push the company to the big league.

Demographic dividend
Exhibit 9: Indian population segmentation based on
Age group
56+
11%

0-14
31%

41-55
14%
31-40
14%
15-30
30%

India has 61% of its population under the age of 30; and 31% below the age
of 14 years, according to Census. Young population are the main drivers of
consumer spending and look out for different modes of entertainment and
child population are the influencing factors for the parents to visit theme
parks & play zones. With majority of the population under the age of 30, we
expect the consumer discretionary spending as % of consumer spending to
increase from 55% in 2007 to 61% 2020. Average age of Indias population
in 2020 is expected to be 29 years which is the lowest in the world. This
demographic factor plays positive role in discretionary spending which is
positive for entertainment industry like amusement parks.

Source: Census India, Karvy Research

Aug 13, 2015


Wonderla Holidays Ltd
Exhibit 10: Discretionary spending in proportion to
consumer expending among BRIC Nations (%)

Indian consumer spending on leisure & education is expected to grow at


CAGR of 15.3% and reach $296 Bn in 2020 from $71 Bn in 2010. Indias
discretionary spending on total consumer expenditure stood at 56.5% in
2012 and is expected to reach 60.6% in 2020. Among the BRIC countries,
India is likely to witness the increase share of discretionary spending out
of total spending. Out of total consumer spending, spending on leisure &
education segment is expected to grow at fastest pace during the period
and the share of this segment is expected to increase from 7.2% in 2010
to 8.5% in 2020.

64

55

55

55

61

59

61

63

60

64

65

50
45

China

Russia

Brazil

2007

India

2020

Source: Euro monitor, Karvy Research

Exhibit 11: Trend of Indian Consumer Spending by 2020


Category

Spending in

Spending in

% CAGR

% Segment Share in

% Segment Share in

$ bn 2010

$ bn 2020

Growth Rate

Spending 2010

Spending 2020

Food

328

895

10.6

33.1

25.0

Transportation & Communication

168

664

14.7

17.0

18.5

Housing & Consumer Durables

186

Education & Leisure


Clothes & Footwear

752

71

296

15.3

49

183

14.1

59

Health

Others

15.0

225

129

18.8
7.2

14.3

570

21.0
8.3

6.0

6.3

4.9

16.0

5.1

13.0

15.9

Source: Euro monitor, BCG India Analysis, Karvy Research

Hyderabad & Chennai parks to kick start growth:


Hyderabad park is expected to be operational by April 2016 at an investment of Rs. 2500 Mn. Wonderla has acquired 49 acres
of land in Hyderabad. However, the company is utilizing only 27 acres of the land for setting up the park and the remaining land
is likely to be used for expansion. At initial stages, park could handle 10000 visitors per day and total number of rides is expected
to be 42, with 24 land rides and 18 water rides. 40% of the rides in Hyderabad are likely to be different while the remaining rides
are expected to be similar to Bangalore. We expect footfall to be in the range of 0.6-0.8 Mn in first year and in next couple of
years, footfalls are likely to reach 1 mn mark and ticket pricing to be similar to Bangalore park. Ticket prices are likely to see 10%
growth every year in Hyderabad park. With close to 12 Mn people in Hyderabad urban agglomeration, it is Indias fourth largest
city in terms of population and District with per capita income of Rs.132862 (in Current prices) which is one of the highest in
South India. Hyderabad District & Rangareddy district GDP have been growing at an average of 10% & 12.3% respectively in
the last 7 years which we expect to be the main catchment areas for the Hyderabad park.
Exhibit 12: Hyderabad park catchment area growth rate

Exhibit 13: Hyderabad District Per capita Income highest in the


state
150000

35
34

132862

25

100000

117752
95361

15

-5

50000

11

5
% contribution to the
State GDP

FY 06-12

8
FY12-25

Hyderabad & Rangareddy GDP Growth rate


Source: Directorate of Economics & Statistics, McKinsey Insights India, Karvy Research

Hyderabad

Ranga reddy

Telangana State

District wise per capita Income in 2013-2014 at current prices (Rs)


Source: Directorate of Economics & Statistics, Karvy Research

Aug 13, 2015


Wonderla Holidays Ltd
Chennai park is expected to be operational by end of 2017 with an investment of Rs. 3000 Mn. Majority of the funding is through
internal accruals and remaining through debt. Existing parks are generating free cash flows which will be utilized for funding the
Chennai park. During first year of operations in Chennai park, we expect the footfall to be 1 mn because of larger market. Most of
the rides are expected to be different from other Wonderla parks in order to attract footfalls and inorder to withstand the competition
from bigger regional players such as MGM dizee world, Kishkintha & Queensland which are operating for many years in Chennai.
Exhibit 14: Chennai Growth Matrix
GDP per capita change

GDP in 2014

GDP Per capita in 2014

2013-2014

(PPP in Mn$)

(PPP $)

Category

Status

Chennai

Developing

5.20

58625

6469

Bangalore

Developing

4.30

45313

5051

Hyderabad

Developing

Mumbai

4.20

Developing

Delhi

40186

4.60

Developing

5063

150853

4.40

7005

293637

12747

Source: Global Metro Monitor, Brookings Report, Karvy Research

Existing parks (Bangalore & Kochi) to support growth


Exhibit 15: Parkwise Footfall (Lakhs)
35
30

7.0

25
20
15

9.2

10.8

11.3

11.9

12.5

13.1

13.8

11.1

11.8

12.1

11.0

10.9

11.1

11.4

10
5
0

FY11 FY12 FY13 FY14 FY15 FY16E FY17E


Kochi park
Bangalore park
Hyderabad Park

Source: Company, Karvy Research

Footfalls & Average Revenue per Visitor (ARPV) to remain key


revenue drivers: The company has two parks operational at Bangalore,
IT hub of India & Kochi, one of the favorite tourist destinations where
spending power is high and easily accessible. Footfalls have been growing
at CAGR of 8% during the period FY05-15 and expected to grow at CAGR
of 4% during FY15-17E for existing parks. Footfall admissions differ for
the operational parks in Kochi and Bangalore. With 65% of footfall for
Bangalore park comes from Bangalore city & greater Bangalore whereas
in Kochi park only 10% of footfalls are from Kochi city. Major footfalls for
Kochi park are from other parts of Kerala and Tamil Nadu whereas footfalls
for Bangalore park constitute of other parts of Karnataka, Southern AP,

Northern Kerala, TN & others. We expect footfall for the existing parks to grow at CAGR of 4% and reach 25.1 lk in FY17E from
23.4 lk in FY15 for existing parks. Footfalls for the existing parks along with Hyderabad park for the next couple of years is likely
to see CAGR growth of 17% during FY15-17E.
Exhibit 16: Footfall & Growth

7.6

7.5

10.8

6.7

FY02

FY03

FY04

FY05

FY06
FY07
FY08
FY09
No of total visitors in lakh

FY10

25.1

24.2

23.4

22.9

20.3

16.1

16.1

15.3

10

14.4

15.0

20

23.4

50%

22.6

30

30%

10%

FY11

FY12

FY13

FY14
FY15
Growth (%)

FY16E FY17E

-10%

Source: Company, Karvy Research

Exhibit 17: Footfall admission for Kochi park

Exhibit 18: Footfall admission for Bangalore park


Karnataka
15%

Tn & Others
35%
Kochi
9%

Kerala
56%
Source: Company, Karvy Research

South AP,
Northern
Kerala, TN
& Others
20%

City &
Greater
Bangalore
65%
Source: Company, Karvy Research

Aug 13, 2015


Wonderla Holidays Ltd

Holiday & festive season days witness higher footfalls


Amusement park business is seasonal with Q1 & Q3 to be strong because of more number of holidays and festive season.
Especially Q1 tends to the strongest season because of summer holidays with close to 50 days of Holidays & Q3 is strong
quarter because more number of festivals come in during the quarter such as Dussehra, Diwali, Christmas & New Year. In Kochi,
Q2 is good quarter because of festivals such as Ramzan, Onam & Bakrid falling in this quarter. Footfalls for the amusement
parks are mainly driven by holidays and new rides in the park. Number of holidays in 2015 & extended weekends for Karnataka
& Kerala are higher than previous year.
Exhibit 19: Bangalore Peak Season

Exhibit 20: Kochi Peak Season

Festival Holidays

Festival Holidays

Diwali

Nov 11-15

Ramzan

Dec 24-27

Bakrid

Dussehra

Oct 22- 25

New Year

Dec 31-Jan 3

Christmas

July18-21

Onam

Aug 27- 30

Christmas

Dec 24-27

Sep 24-17

New Year

Source: Company, Karvy Research

Dec 31-Jan 3

Source: Company, Karvy Research

In general, Wonderla parks generally see 3500 footfalls per day and see higher number during weekends & peak season which
is during holidays. Wonderla parks are currently handling at 29% and has a licensed capacity to handle 12000 visitors per day
in existing parks. Footfall mix combined for both the parks is in the ratio of 70:30 with general crowd and corporate group 70%
and remaining from school & college students. Bangalore park has slightly higher general crowd compared to Kochi park and
students are generally given discounts. School & college crowd are mostly influenced by discount offered to them.
Exhibit 21: No. of Calendar Holidays
Years

Number of Holidays Excluding


Sundays

Exhibit 22: Parkwise Licensed Capacity


Number of extended weekends
(Friday/Monday)

Karnataka

Kerala

Kerala

Karnataka

2014

22

19

11

2015

24

25

14

10

Capacity Footfall per day


Average Footfall

Weekend Footfall
Weekday Footfall

Bangalore

Kochi

Hyderabad

12000

12000

10000

6000

6000

3500
3000

Peak Season Footfall

8000

3500
3000
8000

Source: Company, Karvy Research

Source: Karnataka & Kerala Gov, Karvy Research

Wonderla generally adds a ride every two years and they are planning to add an interesting roller coaster ride in Bangalore
which would be Indias first reversing roller coaster and will be open to public by year end. Consistent addition of new rides and
thrilling rides would help to attract footfalls for the parks.
Exhibit 23: Consistent Addition of Rides in Bangalore & Kochi Parks
2011

2012

2013

2014

2015

32

34

34

33

39

22

22

22

22

23

54

56

56

55

62

Land Rides
Kochi

Bangalore

32

33

33

35

39

Water Rides
Kochi

Bangalore

20

20

20

20

20

Total Rides
Kochi

Bangalore

Hyderabad 45 rides in 2016

52

53

53

55

59

Source: Company, Karvy Research

Aug 13, 2015


Wonderla Holidays Ltd

Flexible pricing and discount strategy to activate footfalls


Footfall is the critical factor for any amusement park and consistent increase in footfalls are necessary to sustain the amusement
park industry. Wonderla has opted for flexible pricing strategy to activate footfalls by offering lower prices during weekdays where
the footfalls will be lower. During weekends, footfall is likely to be around 6000 per day compared to 3000 during weekdays and
ticket prices are charged at premium of 25% to the weekday prices. Peak season which is generally during holidays & festive
season, parks witness footfall of 8000 per day and tickets are priced at premium of 10% to the weekend tickets.
2000

Regular

Fastrack

Weekdays (Mon-Fri) Weekends (Sat&Sun)


Peak Season
Adult
Child

Regular

Regular

Fastrack

740

980

890

1340

1480

1780

Fastrack

670

1120

560

1000
500

Regular

1440

1500

720

1580
990

Fast track Weekends Fastrack

790

1440

720

900

1440
580

500

720

1000

1160

1500

1960

2000
1980

Exhibit 25: Wonderla Bangalore Ticket Prices (Rs.)

1800

Exhibit 24: Wonderla Kochi Ticket Prices

Regular

Fastrack

Weekdays (Mon-Fri) Weekends (Sat&Sun)


Peak Season
Adult
Child

Source: Company, Karvy Research

Source: Company, Karvy Research

Fast track tickets are available which enables the visitor for privilege entry for the rides & attractions by avoiding long queues.
These tickets are priced at 100% premium to the regular tickets and number of tickets issues is limited to 500 numbers in a day.
Average ticket prices (ATP) have been growing at CAGR of 11% over the last 5 years and has reached Rs.618 in FY15 from
Rs. 383 in FY11. In next couple of years, ticket prices are expected to reach Rs.748 in FY17E which is likely to grow at CAGR of
10% driven by price hike & sale of fast track tickets which are sold at twice the price of regular tickets. Ticket price increase every
year for multi-decade-long period is the global phenomena in theme park industry, indicating enormous price elasticity. Global
theme park player Disney land has been consistently increasing its ticket price annually at the rate of 9% for the last 44 years,
(though wonderla is not comparable to its size).

ATP
Source: Company, Karvy Research

Growth in ATP

20

10%

0%
Price ($)

2020

20%

2015

40

2010

30%

2005

60

2000

40%

1995

80

1990

FY17E

FY16E

FY15

FY14

50%

1985

10

100

1980

15

60%

1975

20

1970

10.0

120

1965

618

11.9
540

11.1
482

434
FY12

360

383

200

FY11

7.5

FY10

400

6.3

14.5

FY13

13.4

600

10.0
680

800

Exhibit 27: Disney Land Average Ticket Prices ($) & Growth (%)

748

Exhibit 26: Wonderla Average Ticket Price (Rs.) & Growth (%)

Growth (%)

Source: TEA Attendance Report, Industry, Karvy Research

Schools & college students form 35% of the total footfall for the parks. In order to attract this segment, discounts up to 35% &
20% are offered to school and college students respectively. The companys increased marketing efforts to schools & colleges
would lead to sustained footfalls from these segments. Special packages for corporate groups and stay at Bangalore resort will
lead to discount of ticket prices of theme park. Privilege member cards are offered where they can get discount on entry tickets
and tie up with Bangalore Metropolitan Transport Corporation (BMTC) Volvo bus service.

Aug 13, 2015


Wonderla Holidays Ltd

Non-ticket revenues to grow at faster pace


Non-ticket revenue in the last four years grew at CAGR of 20% and is expected to grow at CAGR of 33% during FY15-17E
driven by Food and Beverages (F&B) segment & share of revenues from restaurants. Wonderla parks have 7 restaurants in
both Bangalore & Kochi parks and are operated under revenue sharing model. Wonderla owns waves restaurants in both the
parks and other 6 restaurants share 25% of their revenues to Wonderla. The company aims to increase F&B segment revenue
contribution to 20% of total revenues from the current 8% in line with global amusement parks. Wonderla sells the products at
MRP whereas in other parks it has been sold at a premium. Spending Per Head (SPH) has increased from Rs.35.5 in 2011 to
Rs.96 in FY15. We expect the SPH to reach Rs. 127 in FY17E from Rs.96 in FY15.
2.4

3.2

3.3

2.8

80

60%
45.5%

50%
18.8%

100
80.5

79.0

79.5

78.9

96

81.8

50

20
13.3

13.4

15.3

17.1

17.7

17.3

FY11
FY12
FY13
FY14
FY15
Non ticket revenues
Ticket revenues

18.3

FY16E FY17E
Resort revenues

Source: Company, Karvy Research

81

86.6

5.6%

15.0%

56

86.7

40

48.7%

FY12

FY13

40%
30%

15.0%

20%
10%

37

60

150

127

2.8

100

Exhibit 29: SPH (Rs.) & Growth (%)

111

Exhibit 28: Revenue Composition (%)

FY14

FY15

SPH

FY16E

FY17E

0%

Growth in SPH

Source: Company, Karvy Research

Leading South Indian Player


In India, most of the large amusement parks are concentrated in metros & Tier-I cities especially in North India. Wonderla is the
largest southern player in the Amusement park industry with two operations in Kochi and Bangalore and cementing its position
as market leader with third & fourth parks coming up in Hyderabad & Chennai.
Wonderla ticket prices for a visitor are much lower than other theme parks such as Adlabs Imagica and Essel world which are
large parks. Amusement parks provide entertainment for entire day/weekend and there is not much competition from other
forms of entertainment such as malls, movies and plays which is for few hours. In cities where Wonderla operates, there are no
big theme parks to compete with them. There are about 165 parks in India with only 10% recognized as large parks. Parks are
categorized based on annual footfalls and with any park more than 0.5 Mn are categorized as large parks.
Exhibit 30: Amusement Park Landscape in India
Type

Number of Parks

Annual Visitors

Large Parks

15

<0.5 Mn

Small Parks

100

Less than 0.3 Mn

Medium Parks
Source: Company, Karvy Research

50

Between 0.3-0.5 Mn

Exhibit 31: Amusement Park Landscape in India


Amusement Parks

Location

Wonderla

Bangalore

Adventure island

Delhi

Ocean Park

Hyderabad

Ticket Prices

In

(Rs.)

Acres

720

83

650

62

Essel World & Water Kingdom Mumbai

1090

Adlabs Imagica

Mumbai

1399

300

Noida

999

44

Worlds of wonder

MGM Dizee world

GRS Fantasy Park


Nicco Park

Chennai
Mysore

Kolkota

350
899
575
520

64

20
27
30
40

Source: Respective Sites, Karvy Research

Aug 13, 2015


Wonderla Holidays Ltd

Glance at Wonderlas competition in its city of operations


Hyderabad
Exhibit 32: Population (Mn)

City with population close to 8.9 Mn hasnt seen any full fledged theme
parks which are going to be opportunity for Wonderla to capture. Hyderbad
city population is likely to reach 12.7 mn by 2030 and will become mega
city, according to UN. Hyderabad, being one of the metropolitan cities in
India and spending power is higher compared to other Tier-II & III cities.
Hyderabad has very hot climate and during summers temperature would
inch above 40oC. There are just couple of small water parks located in
Hyderabad and apart from that, there is Ramoji film city which is in different
genre.

14
12

12.8

10
8

10.3

8.9

11.2

4
2
0

2015

2020

2025

2030

Source: UN Report, Karvy Research

Exhibit 33: Theme Parks in Hyderabad


Amusement & Theme Park

Rides

Ticket Prices (Rs.)

Category

Acres

Wonderla

42

720

Large

47

Ocean Park

25

250

Small

Jalavihar

10

Mount Opera

200

20

425

Small

12.5

Small

20

Source: Respective Companies, Karvy Research

Bangalore
Bangalore park has seen its footfall grow at CAGR of 8% during the last four years consistently which is giving us more confidence
that Hyderabad would also receive similar response going forward. During winters, Wonderla parks would provide hot waters in
the pool as it wouldnt have any impact on footfalls. Despite other forms of entertainment, Bangalore park has proven that it is
niche form of entertainment segment & not comparable with others such as movies, malls & plays. Rides provide the thrill and
enthusiasm among the visitors, mainly kids & youth which induce them to revisit.
Exhibit 34: Theme Parks in Karnataka
City

Amusement & Theme Park

Rides

Ticket Prices (Rs.)

Size

Wonderla

60

720

Large

GRS Fantasy Park

15

575

Bangalore
Bangalore

Fun world

Mysore

Mangalore

Manasa Park

38
15

700

Medium

300

Small

Small

Source: Respective Companies, Karvy Research

Chennai
Exhibit 35: Chennai Population (Mn) & Growth (%)
15

3.0

10
5
0

11.2
5.8
1991

7.0

12.6

8.6

2001
2011
2021
2025
Chennai metro area population
CAGR Growth (%)

2.0
1.0
0.0

Chennai is one of the top metro cities and has population of 9 Mn and is
4th largest city in India. Chennai will have a population of 13 mn by 2030
and is projected to become megacity, according to UN. Chennai has very
hot humid climate for most part of the year which is the opportunity for
theme parks. However, Chennai has quite a few large theme parks which
are going to be challenging for Wonderla. Most of the theme parks are set
up long time back and rides must be used to the visitors and Wonderla
is likely to offer something new which should be one of the crowd pulling
factors.

Source: Census India, TN Government, Karvy Research

10

Aug 13, 2015


Wonderla Holidays Ltd
Exhibit 36: Theme Parks in Chennai
Amusement & Theme Park

Rides

Average Ticket Prices (Rs.)

Category

Acres

Wonderla*

45

800

Large

50

VGP Universal kingdom

37

325

Large

Queensland

51

Kishkinta

350

42

MGM Dizee world

Large

550

46

70

Large

899

120

Large

45

Source: Company, Karvy Research, *Our assumptions based on Hyderabad park

Bangalore Resort to be positioned as Vacation destination


Exhibit 37: Sources of Revenue - Wonderla vis-a-vis
International Trends (%)
80

80

60
40

50

20

15

Admission fees
Wonderla Parks

25

25

F&B +
Resort & Others
Mercahndising
International Theme Park

Source: Company, Karvy Research

Occupancy ratio in Bangalore resort has seen significant increase to 45%


in FY15 from 30% in FY14. Occupancy is likely to reach 60% in FY16E and
to reach 70% in FY17E on the back of increase in footfalls in Bangalore
park and improvement in corporate spending. The company has been
marketing to the corporate and the number of corporate events has seen
gradual increase in last few quarters. Most of the occupancy in the resort
is driven by footfalls in park and 60% of the footfall in resort is family
and remaining from corporate. Along with rooms, it has banquet halls &
conference rooms which have a capacity to hold 800 guests suitable for
hosting wedding receptions, meeting and corporate meetings. Bangalore
park has been designed as weekend destination for vacation where family
can stay in the resort which has amenities such as multi cuisine restaurant,

rest-o-bar, gym, solar heated swimming pool, recreation area and kids activity centre. Currently, resort contribution to revenues
is around 5 % which is less compared to other resorts globally where they derive 25% from the segment.
Exhibit 38: Hotel Occupancy in International Theme Parks
Name of the park

Hotels owned

Rooms

Occupancy (%)

Disneyland & Disney Sea

705

90

Universal Studios, Japan

2500

85

Disneyland Paris

5800

87

Source: Imacs Report, Karvy Research

Brand recall & efficient management can scale the company to be one of the leading players in Indian Amusement
park industry
Wonderla is ranked among the top 25 Amusement parks in Asia and best amusement park in India to visit, according to Trip
advisor. Wonderla getting listed in top Asian theme parks to visit induces confidence for the company to expand. With such
reputation in the industry and couple of parks are being opened in next few years and total of 4 parks would be operational by
2018 and Wonderla is planning to enter north India and become pan Indian player.
Exhibit 39: Top 10 Amusement / Water Parks - India

Exhibit 40: Top 10 Amusement Parks - Asia

Rank

Rank

Amusement/Theme Park

Location

Amusement/Theme Park

Location

Country

1 Wonderla Amusement Park

Bangalore

1 Universal Studios

Sentosa Island

Singapore

3 Adlabs, Imagica

Mumbai

3 Hong Kong Disneyland

Hongkong

China

2 Wonderla Amusement Park


4 Ramoji Film City
5 Essel World

6 Science City

7 Water Kingdom

8 Adventure Island
9 Funworld

10 GRS Fantasy
Source: Trip Advisor, Karvy Research

Kochi

Hyderabad
Mumbai
Kolkota

Mumbai
Delhi

Rajkot

Mysore

2 Ocean Park

4 Tokyo, Disneyland
5 Tokyo, DisneySea

6 Vinpearl Amusement park

7 Wonderla Amusement park

Hong Kong
Urayasu
Urayasu

Nha Trang

Bangalore

8 Harbin Ice & Snow Amusement World Harbin


9 Wonderla Amusement park

10 Funabashi Andersen Park

Kochi

Funabashi

China

Japan
Japan

Vietnam
India

China
India

Japan

Source: Trip Advisor, Karvy Research

11

Aug 13, 2015


Wonderla Holidays Ltd
Setting up amusement park is capital intensive and to set the right model is
challenging task. Wonderla management has experience of 15 years in the
industry and is running two successful parks and is replicating the similar
model in other parks where they intend to expand. New parks which are set
to come up would have land size of 50 acres as the prices are escalating
compared to 90 acres in Bangalore & Kochi. The company manufactures
one third of rides by itself with its efficient in-house manufacturing team
of close to 200 people. Team visits other international amusement parks
and replicates the rides which would suit our domestic people. Through inhouse manufacturing, the company saves on import duty & transportation
expenses and higher maintenance charges. Wonderla has manufactured

Exhibit 41: Rides


Imported
26%

In House
manufactured
38%

Domestically
Sourced
36%

Source: Company, Karvy Research

42 rides and attractions for its park and going forward, it plans to expand its in-house team and manufacture more rides by
itself for its upcoming park in Hyderabad and Chennai. Other rides are imported from Italy & US or domestically outsourced.
The company has water harvest systems in place in its existing parks and in Hyderabad park it has got industrial water supply.
Company does RO treatment technology for treating water in pools.

Capex needed to commission Hyderabad & Chennai Parks to be funded by internal accruals:
Hyderabad has been chosen as the next location for the expansion of Wonderla and is expected to be operational by April
2016. Total investment for Hyderabad is Rs. 2500-2600 Mn and is funded by cash raised through IPO during April-May 2014
for an amount of Rs. 1812.5 Mn. For Chennai park, the investment would be Rs. 3000 Mn and is expected to be commissioned
towards 2017. For Chennai parkmajority of the funding is liekly to be done by internal accruals. Management has guided for
1 Mn footfalls in Chennai during the first year of operation as it is bigger market and more number of new rides are expected.
Along with existing parks and Hyderabad park, Chennai park would start generating cash flows going forward which would be
helpful for opening up new theme parks across India and limit the dependence on debt. The company is planning to open one
new theme park every 4 years and has plans to become a pan Indian player in Amusement park Industry.
Exhibit 42: Hyderabad Capex break Up
Hyderabad Capex break Up
Land, Development & Civil construction
Amusement rides

Machinery & Equipments


Furnishing & vehicles

Consultant fees & others


Pre operative expenses
Contingencies

Rs. Mn
994

1067

261
114

24
63
38

Source: RHP, Karvy Research

12

Aug 13, 2015


Wonderla Holidays Ltd

Exhibit 43: Business Assumptions


Y/E Mar (Rs. Mn)

FY14

FY15E

FY16E

FY17E Comments

Revenue

1536

1818

2085

Revenue Growth (%)

11.4

18.4

14.7

3043 Revenues for the period FY15-17E are expected to


grow at CAGR of 30% , driven by footfall increase
45.9 of 17% & increase in ATP by 10%.

EBITDA

703

805

993

1350

EBITDA Margins (%)

45.8

44.3

47.6

PAT (normalized)

399

506

Fully Diluted EPS Growth (%)

18.7

(3.2)

India Business (Standalone)

Fully Diluted EPS (Rs.)

9.5

570

9.2

10.1

9.7

Source: Company, Karvy Research

EBITDA margins are likely to witness dip due to

initiation of Hyderabad park. However, it is likely to


44.4 improve going forward.
742 PAT is likely to witness CAGR growth of 21%

13.1 during FY15-17E, from Rs.506 mn in FY15 to


30.2 Rs.742 mn in FY17E.

Exhibit 44: Karvy vs Consensus


Karvy

Consensus

Divergence (%)

FY16E

2085

2112

(1.2)

FY17E

3043

3052

(0.3)

FY16E

993

986

0.8

FY17E

1350

1356

(0.4)

FY16E

10.1

10.6

(4.7)

FY17E

13.1

13.3

(1.6)

Revenues (Rs. Mn)

EBITDA (Rs. Mn)

EPS (Rs.)

Source: Bloomberg, Karvy Research

13

Aug 13, 2015


Wonderla Holidays Ltd

Exhibit 45: Revenue (Rs. Mn) & Growth (%)


3300

1378

18.4

FY13
FY14
FY15
Revenues (Rs. Mn)

3043

14.7

40

2085

1100

11.4
1536

21.8

1818

2200

60

45.9

20
0
FY17E
Growth (%)

FY16E

Revenues for the period FY11-15 grew at CAGR of 20%, driven mainly
by 13% average ticket price (ATP) growth. During FY15-17E, revenues
are expected to grow from Rs. 1818.4 mn to 3042.8 mn at CAGR of 30%
during FY15-17E, driven by commissioning of Hyderabad park. During
this period, footfall & ATP are likely to witness growth of 17% & 10%
respectively.

Source: Company, Karvy Research

1500

FY13

FY14

14.5
805

626

500

12.4
703

13.1

FY15

40
30

993

23.4

1000

35.9
1350

Exhibit 46: EBITDA (Rs. Mn) & Growth (%)

20
10

FY16E

FY17E

EBITDA (Mn Rs)

EBITDA is expected to grow at CAGR of 29.5% during FY15-17E from


Rs.805.3 mn in FY15 to 1350 mn in FY17E. EBITDA margins are expected
to improve in FY16E; However, it is likely to dip in FY17E because of
commissioning of new park in Hyderabad. We expect the operating
margins to improve going forward, on the back of increase in footfalls in
Hyderabad park.

Growth (%)

Source: Company, Karvy Research

800
27.0

FY13

40
30

570

200

506

13.9

12.5

18.7
399

400

336

600

30.2
742

Exhibit 47: PAT (Rs. Mn) & Growth (%)

20
10

FY14
FY15
PAT (Rs. Mn)

FY16E

FY17E
Growth (%)

PAT is likely to witness CAGR growth of 21% during FY15-17E, from


Rs.506 mn in FY15 to Rs.742 Mn in FY17E. Profit margins are likely to
be at 24.4% in FY17E and expected to inch up going forward as footfall in
Hyderabad improves. PAT has been growing at CAGR of 14% during the
last four years.

Source: Company, Karvy Research

Exhibit 48: Healthy Retun Ratios (%)

FY13

FY14
RoE

FY15

FY16E

23.8
16.0

20.8

14.1

14.2

10

20.3

26.6

20

28.0

30

35.0

37.7

40

RoE is likely to improve from the current levels of 14% in FY15 to 16% in
FY17E. RoE has seen a fall in FY15 on the back of fresh issue of shares to
raise money for its Hyderabad park. Before the IPO, RoE for the company
stood at average of 29% from FY12 to FY14. RoCE is expected to improve
from 20.3% in FY15 to 23.8% in FY17E, on the back of decline in debt.

FY17E

RoCE

Source: Company, Karvy Research

14

Aug 13, 2015


Wonderla Holidays Ltd
Exhibit 49: RoA & Asset Turnover Ratio
0.9

0.8

20

0.8

0.6
19.9

0.6

0.5
12.7

10

14.9

20.2

15

1.0

0.8

13.0

25

0.4

5
0

0.2
FY13

FY14
RoA

FY15

FY16E FY17E
Asset Turnover ratio

0.0

RoA for Wonderla is expected to improve to 15% in FY17E from the current
levels of 12.7% in FY15. With improvement in margins expected, RoA is
expected to improve. Asset turnover ratio is expected to improve on the
back of increase in footfalls in the existing park as well as Hyderabad parks.
Asset turnover ratio is to improve from 0.45x in FY15 to 0.80x in FY 17E.

Source: Company, Karvy Research

Exhibit 50: Dividend Payout


0.7

2.0
1.5
1.0
0.5
0.0

0.5

0.5

1.5

1.5

FY15

DPS

FY16E

0.8
0.6
0.4

2.0

0.2
FY17E
Dividend Yield (%)

0.0

We expect the company to increase its dividend per share, driven by


increase in operating cash flows. We expect company to pay Rs.1.5 and
Rs.2 per share for FY16E & FY17E respectively. Dividend payout ratio is
likely to be maintained at 15% and management is expected to increase
the payout ratio after commissioning of Hyderabad & Chennai parks.

Source: Company, Karvy Research

Exhibit 51: Company Snapshot (Ratings)


Low
1
Quality of Earnings
Domestic Sales
Exports

Net Debt/Equity

Working Capital Requirement


Quality of Management
Depth of Management
Promoter

Corporate Governance
Source: Company, Karvy Research

33

High
2

33
33
33
33
33
33
33
33

15

Aug 13, 2015


Wonderla Holidays Ltd

Valuation & Outlook


Wonderla is one of the leading amusement parks in India and industry is expected to grow at CAGR of 20% in the next five
years. Wonderla revenues are expected to grow CAGR of 29% during FY15-17E and EBITDA to grow at CAGR of 29.5% during
the same period. Wonderla is currently trading at 20.1x FY17E EPS & 11.1x FY17E EBITDA and we value the company at 25x
FY17E EPS and arrive at target price of Rs.320 with an upside of 21% for holding period of 9-12 months with BUY rating.
Indian consumer discretionary stocks are currently trading at 29x FY17E EPS and global amusement park players in Asia &
USA are trading at 20x & 19x FY17E EPS respectively. Considering the high topline growth and highest EBITDA margins among
its global peers, we feel the stock has potential on long term investment.
Exhibit 52 (a): Comparative Valuation Summary - Global Amusement Park Players
Currency

CMP *

EV/EBITDA (x)

Mcap
($ Mn)

P/E (x)

P/B(x)

FY15

FY16E

FY17E

FY15

FY16E

FY17E

FY15

FY16E

FY17E

18.6

15.1

11.1

28.8

26.2

20.1

4.1

3.7

3.2

7.0

21.7

18.1

16.6

1.2

1.2

1.2

8.4

18.2

15.7

14.0

1.9

1.9

1.9

India
Wonderla

INR

264

231

Asia
Ocean Park

HKD

Ardent lesiure Group

AUD

Orient Land Co Ltd


Average

JPY

7992

812

9.4

8.3

22693

18.7

17.8

15.7

8090

13.2

12.0

10.4

764

11.5

9.9

36.9
25.6

34.1
22.6

29.5
20.0

4.5
2.5

4.3
2.4

3.8
2.3

Europe
Merlin Entertainment

GBP

399

6323

12.4

11.1

9.9

22.3

19.4

16.8

3.4

3.1

2.7

Walt Disney

USD

111

187352

12.7

11.7

11.0

22.0

19.8

17.8

4.0

3.8

3.6

Six Flag

USD

46

4348

13.4

12.3

11.2

29.7

28.8

24.9

Average

6323

12.4

11.1

9.9

22.3

19.4

16.8

3.4

3.1

2.7

USA
Cedar Fair
Average

USD

54

3050

64917

10.6
12.2

9.9

11.3

Source: Bloomberg, Karvy Research, *CMP of compaines are denominated in respective countrys currency

9.5

10.5

19.1
23.6

15.9
21.5

14.9

33.1

28.0

21.1

19.2

17.0

14.8

11.9

13.9

12.6

11.1

Exhibit 52 (b): Comparative Valuation Summary - Global Amusement Park Players


Currency

CMP *

Mcap
($ Mn)

% CAGR (FY15-17E)

EBITDA (%)

RoE (%)

Sales

EBITDA

EPS

FY15

FY16E

FY17E

FY15

FY16E

FY17E

231

29.4

29.5

21.0

44.3

47.6

44.4

14.2

14.1

16.0

812

14.5

16.0

39.5

39.1

764

23.7

26.2

19.6

20.1

India
Wonderla

INR

264

Asia
Ocean Park

HKD

Ardent lesiure Group

AUD

Orient Land Co Ltd


Average

JPY

7992

22693

4.8

14.1

9.0

10.6

31.2

8.2

40.6

31.7

33.8

5.0

13.6

5.5

6.4

12.7

13.4

20.7

10.3

11.1

9.8

10.8
16.8

9.6

12.5

8090

14.3

17.1

11.0

30.1

30.3

31.7

6323

9.2

11.2

15.1

32.0

32.5

33.2

15.9

16.7
16.7

16.8

Europe
Merlin Entertainment

Average

GBP

399

USD

USD

6323

9.2

11.2

15.1

32.0

32.5

33.2

15.9

111

187352

6.9

8.0

12.1

30.3

30.9

31.0

18.4

21.7

18.9

46

4348

37.9

39.1

40.5

USA
Walt Disney
Cedar Fair

Six Flag

Average

USD

54

3050

3.5

6.0

15.9

36.2

64917

5.3

7.7

12.3

34.8

5.6

9.2

Source: Bloomberg, Karvy Research, *CMP of compaines are denominated in respective countrys currency

8.9

37.6

37.9

35.9

36.5

18.4

21.7

18.9

16

Aug 13, 2015


Wonderla Holidays Ltd
Exhibit 53: PE Band

Exhibit 54: PB Band

45

5.5

40

5.0

35

4.5

30

4.0

25
Aug-14

Oct-14

Dec-14

Feb-15

PE
SD2

Apr-15

Jun-15

Average
-1SD

3.5
Aug-14

Aug-15
SD1

Source: Company, Karvy Research

Oct-14
PB
SD2

Dec-14

Feb-15
Apr-15
Average
-1SD

Jun-15

Aug-15
SD1

Source: Company, Karvy Research

Exhibit 55: EV/EBITDA


30
26
22
18
14
Aug-14

Oct-14
Ev/EBITDA

Dec-14
Average

Feb-15

Apr-15

Jun-15

SD1

SD2

Aug-15
-1SD

Source: Company, Karvy Research

Exhibit 56 (a): Comparative Valuation Summary - Indian Consumer Discretionary Stocks


CMP (Rs.)
Wonderla

INOX
PVR

Jubliant Foodworks

Source: Karvy Research

264

239

824

1781

EV/EBITDA (x)

Mcap
(Rs. Mn)
14933

23078

34359

116832

P/E (x)

EPS (Rs.)

FY15

FY16E

FY17E

FY15

FY16E

FY17E

FY15

FY16E

FY17E

18.6

15.1

11.1

28.8

26.2

20.1

9.2

10.1

13.1

10.0

8.2

24.0

3.1

19.3

30.1

15.2

11.0

42.1

32.2

12.6

8.8

22.2

95.0

38.8

91.0

65.9

236.2

38.0

26.6

43.1

2.1

19.2

5.1

7.4

26.7

40.8

Exhibit 56 (b): Comparative Operational Metrics Summary - Indian Consumer Discretionary Stocks
CAGR % (FY15-17E)

RoE (%)

Price Perf (%)

Sales

EBITDA

FY15

FY16E

FY17E

Wonderla

29

29

14.2

14.1

16.0

PVR

21

35

3.2

15.9

20.6

INOX

Jubliant Foodworks
Source: Karvy Research

32
28

32
36

2.9

23.3

6.5

28.1

3m

6m

1.2

(12.5)

30.8

21.8

8.5

64.4

33.4

29.8

Net Sales (Rs. Mn)


12m
1.4

FY15
1818

FY16E
2085

FY17E
3043

37.9

59.5

10168

12457

15128

16.9

69.1

20745

26240

34209

26.6

13864

17937

21694

Key Risks
yyAccidents in the park.

yyDecline in consumer discretionary spending.


yyCapital intensive / land acquisition.

17

Aug 13, 2015


Wonderla Holidays Ltd

Financials
Exhibit 57: Income Statement
YE Mar (Rs. Mn)

FY13

FY14

FY15

FY16E

FY17E

Revenues

1378

1536

1818

2085

3043

753

833

1013

1092

1693

13.1

12.4

14.5

23.4

35.9

15

24

102

68

Growth (%)

Operating Expenses
EBITDA

Growth (%)

Depreciation & Amortization


Other Income

21.8
626
118

11.4
703
132

EBIT

522

595

PBT

500

579

Interest Expenses
Tax

Adjusted PAT
Growth (%)

22

164
336

16

180
399

18.4
805
162

14.7
993
203

45.9

1350

285

41

746

858

1107

729

850

1107

17

223
506

281
570

365
742

13.9

18.7

27.0

12.5

30.2

FY13

FY14

FY15

FY16E

FY17E

Cash & Cash Equivalents

29

200

83

428

716

Inventory

28

33

41

47

69

1943

1455

1394

Source: Company, Karvy Research

Exhibit 58: Balance Sheet


YE Mar (Rs. Mn)
Sundry Debtors

Loans & Advances


Investments

Gross Block
Net Block
CWIP

Miscellaneous
Total Assets

Current Liabilities & Provisions


Debt

Other Liabilities

74

55

1558

1587

57

201

1440

27

55

74

111

162

1555

2614

3810

398

390

452

39

943

2410

41

1660

2002

3976

4376

186

203

110

88

222
52

248
52

281
20

225

32

3526

56

4989

303

41

Total Liabilities

460

503

412

345

352

Reserves & Surplus

779

1079

2999

3466

4072

Shareholders Equity
Total Networth

Total Networth & Liabilities


Source: Company, Karvy Research

420
1199
1660

420

1499
2002

565

3564
3976

565

4031
4376

565

4637
4989

18

Aug 13, 2015


Wonderla Holidays Ltd
Exhibit 59: Cash Flow Statement
YE Mar (Rs. Mn)

FY13

FY14

FY15

FY16E

FY17E

PBT

500

579

729

850

1107

Depreciation
Interest

Tax Paid

Inc/dec in Net WC
Other Income

Other non cash items

Cash flow from operating activities


Inc/dec in capital expenditure
Inc/dec in investments
Others

Cash flow from investing activities


Inc/dec in borrowings
Issuance of equity
Dividend paid
Interest paid

Cash flow from financing activities


Net change in cash

Source: Company, Karvy Research

118

22

132

16

162

17

203

285

(151)

(198)

(252)

(281)

(365)

(3)

(11)

(79)

(49)

(2)

(2)
1

486

(17)
1

502

(374)

(275)

16

(23)
8

562

(91)
6

647

(70)

959

(371)

(1220)

(1400)

79

50

(1943)

(371)

(259)

(2235)

(170)

(455)

1700

(27)

(21)

(15)

29

(73)

(74)

(111)

(71)

(22)
4

172

(87)

1000

(22)

943

(80)

(99)

(103)

(136)

1493

(133)

(216)

(179)

(8)

345

288

Exhibit 60: Key Ratios


YE Mar

FY13

FY14

FY15

FY16E

FY17E

EBITDA Margin (%)

45.4

45.8

44.3

47.6

44.4

Net Profit Margin (%)

24.4

26.0

27.8

27.3

24.4

EBIT Margin (%)

Dividend Payout ratio


Net Debt/Equity
RoE (%)

RoCE (%)

Source: Company, Karvy Research

37.9
0.0
0.1

38.8
0.0
0.0

41.0
0.2

41.1
0.2

36.4
0.2

0.0

(0.1)

(0.2)

20.3

20.8

23.8

28.0

26.6

14.2

FY13

FY14

FY15

FY16E

FY17E

8.0

9.5

9.2

10.1

13.1

28.6

35.7

64.7

71.3

82.1

37.7

35.0

14.1

16.0

Exhibit 61: Valuation Parameters


YE Mar
EPS (Rs.)

DPS (Rs.)
BV (Rs.)
PE (x)

P/BV (x)

EV/EBITDA (x)
EV/Sales (x)

Source: Company, Karvy Research

0.0

33.1

9.3

24.0
10.9

0.0

27.8

7.4

21.3

9.8

1.5

28.8

4.1

18.6

8.2

1.5

26.2

3.7

15.1

7.2

2.0

20.1

3.2

11.1

4.9

19

Aug 13, 2015


Wonderla Holidays Ltd
Stock Ratings
Buy

Sell

Hold

Absolute Returns
> 15%

5-15%
<5%

Connect & Discuss More at


1800 425 8283 (Toll Free)

research@karvy.com

Live Chat

in

You

Tube

Disclaimer
Analyst certification: The following analyst(s), Vignesh S B K, who is (are) primarily responsible for this report and whose name(s) is/are mentioned therein,
certify (ies) that the views expressed herein accurately reflect his (their) personal view(s) about the subject security (ies) and issuer(s) and that no part of his
(their) compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this research report.

Disclaimer: Karvy Stock Broking Limited [KSBL] is a SEBI registered Stock Broker, Depository Participant, Portfolio Manager and also distributes financial
products. The subsidiaries and group companies including associates of KSBL provide services as Registrars and Share Transfer Agents, Commodity Broker,
Currency and forex broker, merchant banker and underwriter, Investment Advisory services, insurance repository services, financial consultancy and advisory
services, realty services, data management, data analytics, market research, solar power, film distribution and production, profiling and related services.
Therefore associates of KSBL are likely to have business relations with most of the companies whose securities are traded on the exchange platform. The
information and views presented in this report are prepared by Karvy Stock Broking Limited and are subject to change without any notice. This report is based
on information obtained from public sources , the respective corporate under coverage and sources believed to be reliable, but no independent verification has
been made nor is its accuracy or completeness guaranteed. The report and information contained herein is strictly confidential and meant solely for the selected
recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any
form, without prior written consent of KSBL. While we would endeavor to update the information herein on a reasonable basis, KSBL is under no obligation
to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent KSBL from doing so. The value and
return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. This report and information herein is solely for
informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial
instruments. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. KSBL will not treat recipients
as customers by virtue of their receiving this report. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any
investment or strategy is suitable or appropriate to your specific circumstances. This material is for personal information and we are not responsible for any loss
incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment
decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon
any information or analysis mentioned in this report, investors may please note that neither KSBL nor any associate companies of KSBL accepts any liability
arising from the use of information and views mentioned in this report. Investors are advised to see Risk Disclosure Document to understand the risks associated
before investing in the securities markets. Past performance is not necessarily a guide to future performance. Forward-looking statements are not predictions
and may be subject to change without notice. Actual results may differ materially from those set forth in projections.
yy Associates of KSBL might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject
company for any other assignment in the past twelve months.
yy Associates of KSBL might have received compensation from the subject company mentioned in the report during the period preceding twelve months from
the date of this report for investment banking or merchant banking or brokerage services from the subject company in the past twelve months or for services
rendered as Registrar and Share Transfer Agent, Commodity Broker, Currency and forex broker, merchant banker and underwriter, Investment Advisory
services, insurance repository services, consultancy and advisory services, realty services, data processing, profiling and related services or in any other
capacity.
yy KSBL encourages independence in research report preparation and strives to minimize conflict in preparation of research report.

yy Compensation of KSBLs Research Analyst(s) is not based on any specific merchant banking, investment banking or brokerage service transactions.

yy KSBL generally prohibits its analysts, persons reporting to analysts and their relatives from maintaining a financial interest in the securities or derivatives of
any companies that the analysts cover.

yy KSBL or its associates collectively or Research Analysts do not own 1% or more of the equity securities of the Company mentioned in the report as of the
last day of the month preceding the publication of the research report.
yy KSBL or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with
preparation of the research report and have no financial interest in the subject company mentioned in this report.
yy Accordingly, neither KSBL nor Research Analysts have any material conflict of interest at the time of publication of this report.

yy It is confirmed that KSBL and Research Analysts, primarily responsible for this report and whose name(s) is/ are mentioned therein of this report have not
received any compensation from the subject company mentioned in the report in the preceding twelve months.
yy It is confirmed that Vignesh S B K, Research Analyst did not serve as an officer, director or employee of the companies mentioned in the report.
yy KSBL may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report.
yy Neither the Research Analysts nor KSBL have been engaged in market making activity for the companies mentioned in the report.

yy We submit that no material disciplinary action has been taken on KSBL by any Regulatory Authority impacting Equity Research Analyst activities.

Karvy Stock Broking Limited


Plot No.31, 6th Floor, Karvy Millennium Towers, Financial District, Nanakramguda, Hyderabad, 500 032, India
Tel: 91-40-2331 2454; Fax: 91-40-2331 1968
For More updates & Stock Research, visit www.karvyonline.com

20