Wonderla Holidays Limited

Consumer Cyclical — Leisure · NSE

₹507.00+₹8.15 (+1.63%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of Wonderla Holidays Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Wonderla Holidays Limited engages in the amusement park and resort business in India. The company operates through Amusement Parks and Resort, and Others segments. It operates amusement parks, rides, restaurants, banquet halls, food courts, and lounge bars.

IndustryLeisure

SectorConsumer Cyclical

Employees871

Annual revenue₹514 Cr

How does it make money?

Turns over ₹514 Cr a year. Of every ₹100 of sales, about ₹16 reaches shareholders as profit, with ₹35 left at the operating level before interest, tax and depreciation. Each of its 871 employees supports ₹59.0 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹59.0 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 5.8% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE25.9%

What is the outlook?

4 analysts covering the stock expect revenue to grow about 13.8% and earnings to grow about 22.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+13.8%

Est. earnings growth+22.7%

Analysts4

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +21% while net margin moved -54% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+21%

Margin effect-54%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 6.4% — barely ahead of inflation
✗ Profit has declined at 18.1% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

52/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

67/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

31.7x

3Y Median

30.4x

40 monthly readings · mean 30.2x · range 22.8x–41.9x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 30.4x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 54% below the peer median of 69.2x.

vs. its own history

Fair

30.4x median over 40 months · +4%

vs. sector peers

Cheap

69.2x median of 4 peers · -54%

vs. generic bands

Fair

15x–35x

EV/EBITDA

17.8x

PEG

0.83

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 15.7% to 4.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 19.2% to 5.8% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 18.3 points, from 53.3% to 35.0%.
🔴Receivables growing faster than salesFinancial
Receivables up 94% against revenue up 21% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 96% against revenue up 21% — stock may not be moving.
🟡Profit is decliningFinancial
Net profit is down 45% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 54% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 53.3% to 35.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 94% against revenue up 21%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 6.4% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 15.7% to 4.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 33%✓ 35.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹162 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 5% a year✓ 6.4% CAGR
Latest reported year was 44.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 5.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹3,218 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

31.7x

Fair

Fairly valued against the generic band

P/B Ratio

1.79x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹15.99

Profitable

Profitable on a per-share basis

ROE

4.5%

Weak

Weak capital efficiency

ROCE

5.8%

Weak

Low return on total capital employed

Debt/Equity

0.35x

Low

Conservative leverage

Revenue Growth (YoY)

44.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

38.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.39%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹162 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

20.8x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

34.7%

Good

Healthy core-business profitability

Net Margin

17.2%

Good

Strong bottom-line conversion

Current Ratio

6.31

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.01

Defensive

Steadier than the market

52W Range Position

36%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

507.8 / 507.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

47.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹426 Cr	₹480 Cr	₹455 Cr	₹514 Cr	+6.4%
EBITDA	₹227 Cr	₹239 Cr	₹163 Cr	₹180 Cr	-7.5%
EBITDA Margin	53.3%	49.9%	35.9%	35.0%	—
PAT (Net Profit)	₹149 Cr	₹158 Cr	₹109 Cr	₹82 Cr	-18.1%
EPS	₹26.33	₹27.84	₹18.55	₹12.83	-21.3%
ROE	15.7%	14.4%	6.3%	4.5%	—
ROCE	19.2%	17.9%	6.4%	5.8%	—
Total Debt	₹7 Cr	₹6 Cr	₹5 Cr	₹6 Cr	-3.4%
Free Cash Flow	₹148 Cr	-₹46 Cr	-₹205 Cr	-₹162 Cr	—

🟢 Revenue has grown at 6.4% a year over 3 years.

🔴 EBITDA has shrunk at 7.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 53.3% to 35.0% over 3 years (-18.3 pts).

🔴 PAT (Net Profit) has shrunk at 18.1% a year over 3 years.

🔴 EPS has shrunk at 21.3% a year over 3 years.

🔴 ROE has fallen from 15.7% to 4.5% over 3 years (-11.1 pts).

🔴 ROCE has fallen from 19.2% to 5.8% over 3 years (-13.4 pts).

🟢 Total Debt has shrunk at 3.4% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹148 Cr to -₹162 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,947 Cr

Total Liabilities

₹150 Cr

Cash & Equivalents

₹17 Cr

Operating Cash Flow

₹135 Cr

Capex

-₹296 Cr

Shareholding (proxy)

Institutional Holding

11.3%

Insider Holding

64.1%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

07 Aug 2026

Analyst Consensus

Recommendations

4 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹676.5

+33.4% vs CMP

Target Range

₹568 – ₹880

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 positive2 mixed3 general

Wonderla Holidays vs Nifty 50: 1Y Return -14.23% vs -11.35%

Univest, 13 Oct

Wonderla Holidays: Why this amusement park stock is a buy on dips

BusinessLine, 27 Jun

Wonderla Holidays shareholders approve ₹2 dividend, reappoint director

scanx.trade, 19 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Buy Wonderla Holidays; target of Rs 613: Geojit Financial Services

Moneycontrol.com, 06 Mar

Wonderla Share Price Up 2.77% as Chennai Park Opens December 2

HDFC Sky, 18 NovPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

We Believe That Wonderla Holidays' (NSE:WONDERLA) Weak Earnings Are A Good Indicator Of Underlying Profitability

Simply Wall Street, 14 NovResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Profitability · Valuation · Risk

WeakGrowth

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑