Wonderla Holidays IPO Opens Today and Closes on 24th. Here are the various Brokerage Recommendations.
Reliance Securities Maintains a SUBSCRIBE rating with a long-term investment objective.
Ajcon Global Analyst Akash Jain said,
Although the company has been aggressive in the pricing the issue but we recommend investors to “SUBSCRIBE” the issue as investment by anchor investors instills confidence and strong promoter quality with the company being a proxy for India’s consumption story with rising middle class disposable income makes us convince that it presents a compelling investment opportunity
Indiainfoline Analyst - Amar Ambani has the following recommendation
Company plans to raise money for funding an amusement park in Hyderabad at a total cost of Rs2.6bn and likely to be operational in FY17. At the upper end of Rs115-125 price range, our FY15 PAT forecast of ~Rs450mn translates in to PE of 15.7x which compares favourably to the CY14E ~14x-27x range for US-listed peers like Six Flags and Cedar Fair. Wonderla offers a robust business model with inherently strong profitability at an attractive valuation. Recommend investors to subscribe at the upper end of IPO range
Anand Rathi has the following Views,
At the IPO price band of Rs. 115-125, the stock is available at a multiple of 19-21x FY13E PE (post dilution). Globally companies into same segments are quoting at 27x (average TTM PE). We recommend investors to subscribe for the IPO.
Motilal Oswal has the Following Recommendation
We would recommend to apply in the IPO in the retail category. Small issue size could see significant oversubscription. Post issue performance will be subject to overall market conditions. An ideal issue for LT investors as we expect stock to double over next 4 years.
