Wonderla Holiday (WONDERLA)
Slow GrowerFairStock Score: 29/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹468.25 |
| Market Cap | ₹2,969.77 Cr |
| P/E Ratio | 29.32 |
| ROCE | 7.82% |
| ROE | 6.57% |
| Dividend Yield | 0.43% |
| Profit Growth | 38.3% |
| Debt/Equity | 0 |
| Sales Growth | 44.2% |
| Promoter Holding | 62.25% |
| 52-Week Range | ₹455 — ₹649.95 |
| Sector | Leisure Services |
| Book Value | ₹272.32 |
Strengths
- Zero debt (D/E 0.00) provides strong balance-sheet stability.
- Promoter holding of 62.25% aligns management interests with minority shareholders.
- Piotroski F-Score of 7/9 indicates decent financial health and earnings quality.
- Positive sales growth of 10.72% shows continued demand for the parks.
Concerns
- Low ROE and ROCE of 6.57% and 7.82% despite a high P/E of 36.54.
- Profit growth of 3.55% lags sales growth of 10.72%, indicating weak operating leverage.
- PEG of 5.12 and dividend yield of 0.42% provide no valuation or income cushion.
- FairStock Score of 15/100 flags the stock as risky at current levels.
AI Analysis
Wonderla is an amusement park operator with a clean balance sheet — no debt and a Piotroski score of 7/9 suggests financial discipline. But as an investor, I pay for future returns, not just cleanliness. The business earns only 6.57% ROE and 7.82% ROCE, which is mediocre for a company trading at 36.54 times earnings. A P/B of 2.92 means the market expects a lot from a book value of ₹181.57. What is the market getting? Sales grew 10.72% but profit only 3.55%, showing that revenue is not converting into shareholder earnings. The latest quarter, with ₹135 Cr sales and ₹14 Cr profit, implies a thin net margin of around 10%. At a PEG of 5.12, growth is nowhere near supporting the price. This is not a wonderful business at a fair price; it is a fair business at an unwonderful price. Promoter holding of 62.25% is positive — interests are aligned — and zero debt gives resilience. Yet the dividend yield of 0.42% gives shareholders almost no cash return while they wait. In Graham's language, margin of safety is absent. If Wonderla can improve capital allocation, lift ROE materially, and translate sales growth into profit growth, the story changes. Until then, a rational investor should let this one pass or wait for a significantly lower price.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer