Wonderla Holidays shares surge 10% after company receives approvals for Chennai project

Wonderla Holidays shares surged by 10% in today's trading session, reaching a historic high of ₹887 per share. This significant increase came after the company received all the necessary approvals, clearances, and no-objection certificates (NOCs) from the Government of Tamil Nadu for its Chennai project.

With these key permissions now in hand, Wonderla is set to commence construction on this project. Simultaneously, construction work on the new Odisha Park is progressing rapidly.

At 2:00 PM, the shares were trading with a gain of 6.20% at ₹858 apiece. 

"Wonderla is set to unveil a stunning amusement park located 45 kilometers away from Chennai, nestled along the scenic Old Mahabalipuram Road. This enchanting destination will be situated in the charming village of Illalur, a mere 2 kilometers from the OMR highway."

"The grand vision for this project involves a substantial investment of approximately 400 crores, spanning across a sprawling 62-acre expanse in Illalur village, within the Thiruporur taluk of Chengalpet district," the company said in an exchange filing today. 

"This upcoming amusement park promises to be an iconic addition to the company’s expansion plans. It is poised to be a shining jewel in the organization's crown, offering a remarkable recreational experience to visitors," the company added.

Wonderla is also exploring opportunities to establish amusement parks in Madhya Pradesh, Punjab, and Goa. The company is a leading player in the Indian amusement park industry. It has nearly two decades of expertise in administering parks in the three different cities of Kochi, Bengaluru, and Hyderabad.

Amusement Park companies are witnessing positive momentum towards pre-pandemic levels of business after facing COVID-induced headwinds in recent years. The growth is due to the rearrangement of operations and recovery from pandemic restrictions involving social distancing, remote working, and the closure of commercial activities.

The company's shares in the current year so far have delivered a multi-bagger return of 151%, the highest yearly performance since listing in CY14. Regarding financials, it reported a 24% YoY surge in its consolidated revenue from operations to ₹185 crore in Q1FY24, and a profit after tax (PAT) of ₹84 crore, an increase of 31.25% YoY.

FY23 was a landmark year in the history of the company, marked by record-breaking achievements across all key metrics. It was a stellar year wherein the company recorded its highest EPS ever, clocking 130% growth over the earlier peak EPS of FY20.

In the process of more than doubling the previous peak EPS, Wonderla has broken all the previous records and registered all-time high footfall, revenue, EBITDA, and PAT. In FY2023, the company had an average footfall rise of 39% across all of its parks. The total number of visitors for the year stood at an incredible 33 lakhs, averaging over 10 lakhs of footfall per park.

Its parks in Bangalore, Cochin, and Hyderabad registered significant growth. In Bangalore, there were 12 lakhs visitors, 11.4 lakhs in Cochin, and 9.7 lakhs in Hyderabad, according to the company's FY23 annual report. 

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