Wonderla ICR

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Indias favourite amusement park operator

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

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
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
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
Exhibit 3: Revenue Segmentation - FY15 (%)
Others
17.9%
Bangalore
Resort 5.4
Kochi Park
39.2
FIIs
9.1%
Promoters
71.0%
Bangalore
Park 55.4
Aug 13, 2015

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)
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%
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

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

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

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
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%
Exhibit 17: Footfall admission for Kochi park
Exhibit 18: Footfall admission for Bangalore park

Karnataka
15%
Tn & Others
35%
Kochi
9%
Kerala
56%
South AP,
Northern
Kerala, TN
& Others
20%
City &
Greater
Bangalore
65%
Aug 13, 2015

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
Dec 31-Jan 3
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: 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
Aug 13, 2015

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
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
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

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
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
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
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

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
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

Exhibit 36: Theme Parks in Chennai
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
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

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%
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

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
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

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.
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 (%)
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.
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
14
Aug 13, 2015

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.
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.
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
33
High
2
33
33
33
33
33
33
33
33
15
Aug 13, 2015

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

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
Oct-14
PB
SD2
Dec-14
Feb-15
Apr-15
Average
-1SD
Jun-15
Aug-15
SD1
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
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

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
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

420
1199
1660
420
1499
2002
565
3564
3976
565
4031
4376
565
4637
4989
18
Aug 13, 2015

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
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 (%)
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)
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

Stock Ratings
Buy
Sell
Hold
Absolute Returns
> 15%
5-15%
<5%
Connect & Discuss More at

1800 425 8283 (Toll Free)
research@karvy.com
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Indias favourite amusement park operator

Available from: Vignesh Sbk

Aug 13, 2015

Consumer Discretionary - Recreation Facilities & Svcs

Wonderla Holidays Ltd

India Research - Stock Broking

Wonder Land of Opportunities

Hyderabad & Chennai parks to kick start growth:

CMP (as on Aug 12, 2015)

Indian Amusement parks in nascent growth stage:

3M Avg. daily volume (mn)

52-wk High/Low (Rs.)

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

Face Value (Rs.)

Shareholding Pattern (%)

Valuation and Outlook

Stock Performance (%)

yyAccidents in the park.

yyDecline in consumer discretionary spending.

yyCapital intensive / land acquisition.

Source: Bloomberg; *Index 100

Exhibit 1: Valuation Summary (Rs. Mn)

EBITDA Margin (%)

Adj. Net Profit

Source: Company, Karvy Research

040 - 3321 6271

Aug 13, 2015

Company Financial Snapshot (Y/E Mar)

Optg. Exp (Adj for OI)

Profit & Loss Ratios

Net margin (%)

Dividend yield (%)

Indias favourite amusement park operator operating two of

Source: Company, Karvy Research

Cash Flow (Rs. Mn)

Balance sheet (Rs. Mn)

Net fixed assets

Balance Sheet Ratios

Source: Company, Karvy Research

Exhibit 2: Shareholding Pattern (%)

Dividends & Finance

Source: Company, Karvy Research

Exhibit 3: Revenue Segmentation - FY15 (%)

Source: Company, Karvy Research

Source: Company, Karvy Research

Aug 13, 2015

Amusement parks in India in nascent growth stage

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

Source: Company, Karvy Research

Exhibit 5: Global Amusement Park Industry Market

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

Source: Company, Karvy Research

Exhibit 6: Region-wise Growth Rates (%)

CAGR Growth rate 6 years

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

Source: TEA, Karvy Research

Aug 13, 2015

Magic Kingdom at Walt Disney World

Tokyo Disney Sea

Epcot at Walt Disney world

Disney's Hollywood Studios

Disneyland park at Disneyland Paris