Analysis_ Wonderla Holidays Limited _ Vijay Malik

2/28/2017

Anal ysi s: W onder la Hol i days Li m i ted | Vij ay M al ik

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February 27, 2017

Analysis: Wonderla Holidays Limited www.drvijaymalik.com has a dedicated section for investment & stock specific queries of readers: “ Ask Your Queries”. www.drvijaymalik.com time, readers have asked queries about multiple stocks in this section. Answers to these queries have been done preliminary analysis of the stocks under consideration. Such analysis has been found helpful by readers. “Analysis” series is an an attempt to summarize & share with all the readers, the key questions and their answers, which featured on “Ask Your knowledge with with all the read Your Queries” section. The primary aim of this new feature is to share the knowledge the website. The current section of this series, “Analysis” covers Wonderla Holidays Limited, a leading player in the Indian amuse park industry with operational operational parks in the cities of Bangalore, Hyderabad and Cochin. 35

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Reader’s Analysis

Wonderla Holidays Limited Industry Wonderla Holidays Wonderla Holidays Limited is in the amusement park industry. An amusement park is a generic term for a collection of ride other entertainment attractions, assembled for the purpose of entertaining a large group of people. The oldest amusement in the world is Bakken, north of Copenhagen, Denmark, which opened in 1853. The global amusement park industry is $25 billion and is dominated by the US which holds 50% of the pie. The US is foll by Asia pacific (27%) and Europe (20%), Canada and Latin America form a small portion of the global market. Global footfalls in 2011 were 196.3 million for the top 25 parks. This was an increase of 3.8% over the previous year. The American market grew 2.90%, As ian market by 7. 50% and E urope uropean an market by 2. 8% in the y ear 2011. 2011.

Indian amusement park industry The first amusement park in India was Appu Ghar opened in 1984 in Delhi. The amusement park industry in India can be b down in stages as shown below

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Anal ysi s: W onder la Hol i days Li m i ted | Vij ay M al ik

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The Indian amusement park industry is 2600 Cr and there are 150 150 amusement parks in the c ountry. The annual annual footfall f industry is 58-60 million. This is expected to grow 10-15% 10-15% in the next next 5 years. I nvestments t o the tune of 17500 17500 Cr are are lin for 12 parks, the largest being the one in Surat which is to be set up at a cost of 10000 Cr, it is a joint venture with At Limited and is spread over 3200 acres. Peak season for parks is t he March to June and October October to December months. Kids are the major target segme amusement parks and school vacations and festivals like Diwali and Christmas are when kids would visit the parks. The Indian amusement park industry can be segmented as below

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Source: Annual report Wonderla Holidays Limited FY16

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Parks like Wonderla, Essel World and Nicco park fall into the large park category. These parks provide a combination of wet rides, restaurants, eateries. Some large parks also provide resorts, spa, banquet halls, and golf course as addi facilities.

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Sources of revenues for the parks are entry fees, food & beverages (F&B), retail products, sponsorship and advertisem resorts and other miscellaneous rentals.

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In India major revenue for the parks is in the form of entry fees about 75-80%, F&B and merchandising contribute about 18 and resorts resorts and other rentals about about 2%. P arks globally receive 31-35% 31-35% of their revenues from entry fees, 32-35% from F& 35-37% from the resort and other rentals. When compared compared to their global global peer’s Indian parks parks have a lot of catching up to do in the F&B and resort rental space. Par India charge either single entry fees, pay as you go option or separate fees for dry and wet rides or a combination of the ab Major parks in India are as below

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Major drivers for amusement parks in India are demographic advantages, 28.5% of the population lies in the age group of years, 63.40% in the 15-59 and 8.10% >60 years. years. Rising income levels, inc rease spending spending on tourism tourism and leisure activit rising urbanization are the other factors that will lead to more people visiting amusement parks.

The Company Wonderla Holidays Wonderla Holidays Limited is one of the largest operators operators of amusement parks in India. They currently have three par Kochi, Bangalore & Hyderabad and resort in Bangalore.

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2/28/2017

Analysis: Wonderla Holidays Limited | Vijay Malik Mr. Kochouseph Chittilappily who had incorporated V-Guard industries in 1996 set up the first amusement park in 2000 b name of Veegaland in Kochi. Veega holidays and parks private limited which ran the Veegaland park merged with the com on 1st April 2008 and after that, the Kochi park is operated under the name Wonderla. Wonderla Kochi is situated on 93.17 of land, and currently, only 28.75 acres is being occupied for 56 water and land based rides. They also have 7 restaura Kochi.

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The second park was set up in Bangalore in 2005 by the name of Wonderla. Wonderla Bangalore is situated on 81.75 acr land and currently, 39.2 acres is being occupied for 55 land and water rides plus the resort. They have 7 restaurants i Bangalore park. The company has a resort in Bangalore. The resort was set up in March 2012 with 84 rooms with a capex Cr. The resort provides amenities like banquet halls, conference rooms, restaurants, gym to name a few.

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The intention of setting up the resort was that the customer has an extended stay to enjoy the amusement park thereby increasing customer spend. The management in its latest c oncall has expressed its interest t o set up a resort in Kochi i near future.

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The third park was set up in Hyderabad recently and the park has s tarted generating revenues from Q1FY17. The compan acquired 49.57 acres of the Hyderabad park for 25.47 Cr. The company has used only 27 acres for 42 land and wet rides.

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The company is in the process of acquiring land and setting up one more park in Chennai. Aft er the Chennai park has bee up the management intends to set up one new park every 2-3 years. The parks will be funded through a combination of in accruals and debt. The Hyderabad park is set up at a total cost of 256 Cr. Below is the breakup of the costs involved in setting up the park. should give an indication of the various costs involved in setting up of the park.

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The 106 Cr spent on amusement rides can be broken up as follows: 38 Cr has been spent to import rides,

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36 Cr for rides developed in house and

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32 Cr for water based rides.

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The company has an in-house team which designs rides and is a huge source of competitive advantage when compared to peers. I will cover this in detail later in the report. The company follows the IS 800-1984 (code of practice f or general construction in steel) and EN – 13814 (European standa designing and selection of amusement rides.

Competitive advantage

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It is very essential for an investor to understand the competitive advantages that the company may have. These comp advantages or moats must be sustainable and also growing. Sustainable and growing competitive advantages create ma shareholder wealth, provided the investor has bought the business at a right price. As Warren Buffett says

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“It’s far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.” Register: premium.drvijaymalik.com/product/peacef…

It is then very important that the investor buys a wonderful company at a fair price. Source of competitive advantages can be if the company has low input costs, proprietary technology, patents. Cust preference for the product is also a strong source of competitive advantage and can be achieved through strong customer and higher switching costs. Network effects can also be a source of a strong competitive advantage.

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It is for the investor to identify and sources of competitive advantage that a company may have and check to see if advantages are not eroded. If a c ompany has a strong competitive advantage and earns high returns on capital, it is natura it will attract c ompetition. It i s companies that are able to negate this t hreat and continue earning high returns on capita create shareholder wealth and an investor must identify and buy these businesses at a fair price. After studying t he company, I believe Wonderla Holidays Limited has the below c ompetitive advantages. 1) High entry barriers:

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The amusement park business is capital intensive. Companies that operate in this space need to spend money for setti new parks, spend for new rides every 2-3 years to attract customers and get repeat footfalls and spend money for mainte aka maintenance capex every year.

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It is difficult for a lot of parks to survive and thrive in the same area, hence the companies that have set up parks in a parti area have a first m over advantage. Let me explain this with help of an example. Wonderla Holidays Limited has two established parks in Kochi and Bangalore. If any competitor needs to set up a park near these locations they need to spend money on rides and equipment for which Wonderla has already spent and those assets must have been depreciated fully. Also, land prices have gone up since the time Wonderla set up its parks and company will have to pay the much higher price to acquire land.

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It is also not easy to acquire huge parcels of land.

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If one assumes that the company has deep pockets and is able to set up a park in one of these locations it will take a lot of time for the company to break even and the company cannot price its tickets higher than the competition.

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Wonderla Holidays Limited has been very strategic in setting up its parks in good locations. Its latest park in Hyderabad also does not have any major competition. The catchment area for such huge parks as Wonderla is in the range of 250-300 km. Hence it is very difficult to penetrate markets where Wonderla already has a presence.

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The company has an in-house manufacturing facility at Kochi to manufacture amusement rides. This is in addition to pro rides from manufacturers in India and outside India. The company is always on the lookout for developing innovative rides. The company sends its key staff to amusement across the world to observe new trends, this exercise helps them to conceptualize new innovative rides, thereby enha customer experience. 35

As Of January 31, 2014, the company has manufactured 42 rides for its parks. The cost advantage is huge if a co manufactures its own rides, the cost is 1/3rd the cost it would have to pay if it procured the rides from external vendors. 3) Attention to customer preference:

The Company is aware that to attract footfalls and have repeat customers it has to innovative and provides new attractio customers. For this reason, it introduces one new ride every 2-3 years in its parks. As mentioned above it also sends its st 12 parks across the world to observe trends. As a result of these efforts, the Park in Bangalore is ranked #1 amusement park in India and the Kochi park #4. The Bang park is ranked #8 and the Kochi park # 15 in top 25 parks in Asia.

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These positive reviews and happy experiences would also have a rub on effect on people wanting to visit the park.

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The company is also aware that accidents could result in adverse publicity to the park and hence it has strict mainte procedures in place. The company has had nine accidents in its parks which have resulted in legal proceedings agains company. There are only 4 outstanding at the time the company filed DRHP. Liked

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Management Mr. Kochouseph Chittilappilly is the founder, promoter and non-executive director of the company. He is also the founder of V-Guard industries and is currently its chairman. Mr. Chittilappilly is also the founder of the Thomas Chittilappilly Trust. The trust provides health insurance cover for over 2300 families from financially backward classes across Kerala, Karnataka and Tamil Nadu. Mr. Chittilappilly also did something very unusual in 2011 unheard


2/28/2017

Analysis: Wonderla Holidays Limited | Vijay Malik Sanjay Bakshi @Sanjay__ Bakshi

Just had a ver y enjoyable chat with @drvijaymalik. Gave him a pet name: Dr. Stock. Check out his blog to find out why drvijaymalik.com 5:50 PM - 21 Mar 2015 26

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of in business circles. At the age of 61, he donated one of his kidneys to save the life of a truck driver. This was done in spite of protest from his family and discouragement from his doctors. Mr. Arun Chittilappilly is the son of Mr. Kochouseph and the managing director of the company. He is a masters in industrial engineering from industrial research institute of Swinburne university (IRIS), Melbourne, Australia. He initiated the Bangalore park project in 2003 which was completed by 2005. There is also a clear demarcation between Wonderla Holidays Limited and V-Guard, while it is Arun Chittilappilly who is the MD of Wonderla, Mithun Chittilappilly is the MD of V-Guard. One more measure to check management integrity is to see what their remuneration is when compared to the net profits the company earns. The below shows the remuneration drawn by senior management at Wonderla Holidays Limited, the compensation drawn is reasonable.

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@Moneylifers Dr. Stock has a diagnostic kit for identifying unhealthy businesses. He also examines "impatients." @drvijaymalik 5:14 PM - 10 Mar 2016 1

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Sanjay Bakshi @Sanjay__ Bakshi

An excellent post, Vijay. The reverse is also tr ue. Every lender should watch the borrower's stock if it is listed. twitter.com/drvijaymalik/s… 6:42 AM - 13 Aug 2015 2

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The management sells all packaged foods, aerated drinks in the park at MRP. This certainly tells you something abou management, they c an easily sell these above MRP and no one can question them and people will pay up for these, as th in the cinemas. However, the management has a policy of selling all the products at MRP. 35

There is a superb piece written by Prof. Sanjay Bakshi titled “Seven Intelligent fanatics from India”. Prof Bakshi teaches at Gurgaon and is an authority on value investing. In this article, he writes about people who run businesses which have rewarded shareholders handsomely and the qualitie these people possess. He calls them intelligent fanatics. Charlie Munger has to say this about intelligent fanatics:

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So what are the qualities that these intelligent fanatics possess, they are three namely: integrity,

9:39 AM - 9 Mar 2016

energy and

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intelligence.

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“If you get an opportunity to get into a wonderful business that’s being run by an intelligent fanatic and if you don’t load up, it’s a big mistake”.

Are the promoters of Wonderla Holidays Limit ed then I ntelligent fanatics ? I think so and I substantiate the s ame below.

passionate investor

1) Integrity

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@drvijaymalik I am sure hundreds of novice investor s have matured into sensible ones by constantly reading ur posts !!

Here is something I came across while reading the DRHP of Wonderla Holidays Limited:

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@drvijaymalik @sanjeev_mohanty love what your doing and the humbleness of this response. Keep up the good work. 3:07 AM - 18 Jul 2016 1

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The copyright “Wonderla” and patent for an invention was as signed to Mr. Koc houseph Chittilappilly and he has assigne copyright and patent in favor of the company for a consideration of Rs 2000.This certainly tells y ou about the integrit quality of people who are in charge of the company.

Shailesh Naik @scode_snn

2) Energy:


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@Sanjay __Bakshi @drvijaymalik Dr. stock is doing a wonderful service to investing community .

The promoters of Wonderla Holidays Limited certainly have energy, and there is also intense focus that they have, which us other promoters don’t have. The promoters are focused only on setting up large parks in t he country and expanding their re

6:43 PM - 21 Mar 2015

Apart f rom the 3 parks that they have, t heir plan is to set up a park in Chennai and af ter t hat, they want to set up one park 2-3 years. They are very clear that these parks will be located on the outskirts of the city and will be large. In fact in the r concall Mr. Arun Chittilappilly when asked about whether he wants to set up small centers in the city so that the brand vis of Wonderla would increase said that he is not interested in such an exercise and his sole focus is to set up the kind of that the company currently operates into other parts of the country.

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Warren Buffett has to say this about people who focus: “The difference between successful people and really successful people is that really successful people say no to almost everything”. 3) Intelligence:

Rohit Mutha @rohitmutha24

@drvijaymalik really great article, helping a college student like me to understand the ways to keep it simple while investing. 2:01 PM - 3 Apr 2016 2

Forget about other businesses, the company is not even interested to set up small entertainment centers which would en the brand visibility of Wonderla. This certainly tells you the focus with which the company is going ahead.

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As an invest or one would like to partner with intelligent people who run the business, how does then one recognize wheth people running the business are intelligent and not dumb? In his article Prof. Bakshi inverts the problem and suggests four elements of dumb behavior they are as follows: excessive leverage growth without regard to profitability tendency to gamble and

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inability to delegate, thereby curtailing growth. Let us now apply these to the management of Wonderla Holidays Limited and see where they stand:

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@drvijaymalik u r blog has helped a lot in understanding f undamental analysis of stocks. Thanks. Dr. 11:14 PM - 26 Mar 2016 1

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The company has negligible debt, they have net cash & current investments to the tune of 112 Cr at the end of FY16. One look at the return on capital (ROIC) over the years will point that there is quality in growth. The average pretax 12 ROIC for FY09-16 is 33%, and the average ROE for the same period is 22%. The company is completely focused on developing the business in the same form to the other parts of the country, there are no signs of DIWORSEFICATION. Mr. Arun is a veteran in the amusement park business, he was the one who spearheaded the Bangalore project and recently also set up the Hyderabad park. The company in their latest concall also has said that they have hired senior talent to help them run the business, this shows that they are willing to bring professionals to run the business. Looking above one can say that the promoters of Wonderla Holidays Limited are intelligent fanatics.

Financial Analysis In this section, I am going to cover the financial statement analysis of the company. In addition, I will also speak abou return on capital (ROIC) and the return on equity (ROE) in detail. These are two most important ratios an investor understand and spot what are driving these. The income from operations (services + products) has increased at CAGR of 18% during the period FY11-16. Total income from operations stood at 205 Cr at the end of FY16.

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@Moneylifers @pratish31 @drvijaymalik Dr analysis with the numbers which speak more than his words, have read all his posts many times.

Sale of services primarily consists of entry fee collection, other heads of income in this section are room rent collection from the resort, the share of restaurant and shop revenue and other counter collections. Sale of products consists of the sale of merchandise and food & beverages (F&B) at the park. Below is the chart showing the breakup of revenue from operations for FY16.

9:18 PM - 10 Mar 2016 1

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@drvijaymalik Sir, U r doing a fabulous work helping scores of ppl who hve been burnt by PMS & similar schemes! — Anup (@AMat1032) August 3, 2016

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You will not see this kind of analysis in any equity research report. Learnt a lot. Thanks @drvijaymalik twitter.com/drvijaymalik/s… 4:43 PM - 27 Nov 2016


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Analysis: Wonderla Holidays Limited | Vijay Malik 6

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79% of the revenue is contributed from entry fee collection, service revenue stands at 86% of the total revenues from operations for the year-end FY16. 12

Products contribute 14% to the total revenue mix, with cooked food contributing the highest share at 7%. The total footfalls at both the Kochi and Bangalore parks were 22.37 lakhs. The average ticket price for both the parks was 721 Rs, an increase of 17% over the previous year. The non-ticket revenue per person for both the parks was Rs 196 an increase of 24%. The average revenue per user (ARPU) for both the parks was 917 Rs. The breakup park wise is given below.

The operating revenues (EBIT) have increased at CAGR of 16% over the period of FY11-16, from 34 Cr to 70 Cr. This has grown slower than the top line because in the same period employee expenses have increased by 18% CAGR and other expenses have increased by 25% CAGR. The PAT has grown at 14% CAGR for same period FY11-16, from 31.5 Cr to 59.8 Cr. There was an extraordinary gain in the year 2011 for 11 Cr which inflated the PAT for that year. If adjusted for that then the CAGR PAT growth for the FY11-16 period is 24%. Other income consisting mainly of treasury income has played a significant role in the company posting PAT growth greater than top line growth. The average EBIT margins for the period FY09-16 was 34% and PAT margins for the same period were 25%.


2/28/2017

Analysis: Wonderla Holidays Limited | Vijay Malik The EBIT and PAT at the end of FY16 were 70 Cr and 60 Cr respectively.

Trend in footfalls and ARPU:

In the latest c oncall when Mr. Arun Chittilappilly was asked about what are the important metrics that the management look he said that the Holy Grail in the amusement park business is footfalls, non-ticket revenues and ticket price hikes. In view of this, I am going to cover these aspects in this section. Below is the snapshot of footfalls of the both the parks 2011. It is a bit concerning to see that the 5YR CAGR growth in footfalls in Kochi is -1% and for Bangalore, it is a healthy 5% growth of footfalls in parks across the world is 2-3%. The management in its recent concall has indicated that they see footfall to grow in the range of 4-5% over a long period of The management in its latest concall has also expressed that marketing efforts will drive the footfalls at parks. The management recently has prepared a video to advertise for the Kochi park, this is the first time in the history o company that they have advertised through this form rather than print or other traditional forms of media.

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Below is the snapshot of revenues from the Kochi and Bangalore parks. These are both ticket and non-ticket revenues. 12C One can see from the below figure that revenues have grown at a healthy rate. The Kochi revenues have grown at 5YR growth of 13% and the Bangalore revenues at 19%. The 3YR CAGR growth rate in resort revenues is 21%.

The average revenue per user (ARPU) has grown at 15% for the K ochi park from Rs 390 in 2011 to 776 in 2016 and 13% f Bangalore park from 522 in 2011 to 955 in 2016 for the 5YR period. The combined ARPU from both the Kochi and Bang park has grown at 15% from 450 to 918.

I have broken down the ticket and non-ticket revenues for both the parks and the findings are as below. The average ticket price for both the Kochi and Bangalore park has increased by 14% CAGR for the FY12-16 period from 721. The non-ticket revenue for both the parks for the s ame period has grown at an impressive 31%. The ARPU has gro 16% from Rs 500 to Rs 918.

Currently, non ticket revenue is a very small portion of the overall revenues, it is about 20%. Global parks get about 35% ticket collection compared to 75-80% for Indian parks.


2/28/2017

Analysis: Wonderla Holidays Limited | Vijay Malik See below chart for revenue breakup of Indian versus global parks.

There is lot of scope for Wonderla Holidays Limited to increase its non-ticket revenues, as it forms only a small part of the Total revenues that it reports currently. The management in concall has been highlighting that they would want F&B and re to contribute more to the revenue mix. The management has also expressed interest to set up a resort at Kochi and would in the future in its new parks provided it has the required footfalls. The balance sheet of Wonderla Holidays Limited is healthy and strong. Look at the below balance sheet equation, Assets= Liabilities + Owner’s equity

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The assets that a company owns are funded by liabilities and owner’s equity. In the case of Wonderla Holidays Limited for the year ending FY16, 89% of the assets are funded by owner’s equity and 2% by trade payables. The company has about 5 Cr of long-term liabilities, which is 1% of the total liability and owner’s equity section. The debt to equity ratio was 0.01 at the end of FY16. The business is a fixed asset heavy business, meaning fixed assets form a major part of the total assets of 12 the firm. At the end of FY 16, 72% of t he asset s that the c ompany held were noncurrent. Tangible assets formed 34% of the total assets and capital work in progress 35%. The capital work in progress would have been moved into fixed assets as it mainly pertains to the Hyderabad park and the park is operational since Q1FY17. Current assets formed 28% of the total assets, with current investments and cash & cash equivalents forming 25%. It is clearly evident that the company is not working capital intensive. The cash conversion cycle is -43 days, the cash conversion cycle is calculated as receivable days + Inventor days – payable days. For FY16 the cash conversion cycle is 1.4+48-92 = -43 days. This means that the creditors of the company are funding the working capital of the company. The company has current investments and cash & cash equivalents to the tune of 112 Cr at the end of FY16. As mentioned earlier the company is a fixed asset heavy business and hence one important ratio that an investor needs to look at is the fixed asset turnover ratio. This is calculated as sales/fixed assets and this was at 0.66 at the end of FY16 as compared to 1.02 in the previous year. This is a temporary situation as assets for constructing the Hyderabad park have been brought to the balance sheet and sales for the same have to kick start. According to the management, it takes 3-4 years for a new park to be profitable at the PAT level. The net operating assets of the company (operating assets – operating liabilities) at the end of FY16 were 290 Cr, I have excluded the financial assets & financial obligations from the same as these are financing activities. The company has net financial assets to the tune of 107 Cr at the end of FY16. The pretax ROIC calculated as EBIT/Invested capital, invested capital. In this case, is net operating assets and EBIT is taken from the P&L. The pretax ROIC at the end of FY16 was 24%, lowest in six years. The reason as mentioned above is the fall in capital turnover, which is a temporary situation and this ratio should improve once sales from Hyderabad park kick in. The average pretax ROIC for the period FY09-16 was 33%. The ROE at the end of FY16 was 14%. I will cover the ROE & ROIC in detail ahead of this report.

One very important financial statement is the cash flow st atement and investors usually do not pay much attention to i investor ignoring the cash flow statement is doing so at her peril. The cash flow statement can be divided into three namely a) cash flow from operations b) cash flow from investing act ivitie c) cash flow from financing activities. Special attention needs to be given to cash flow from operations (CFO), this is also called as the cash profits. This is the that the company generates from running the day to day operations of the business. It is very important for the compa generate healthy CFO, as it is with this that the company further invests in assets for growth. If a company is not a generate positive and healthy CFO, then it will not be able to invest in assets and will have to borrow to fund the new asset Where does Wonderla stand in this regard? See below:


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One can see that the CFO, cash profits are higher than the accounting profits reported. This is a very good sign. This m that the company is generating more money that what it is reporting as PAT in the P&L. What is causing this? One look at the detailed cash flow statement gives the details.

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Source: Annual report, FY16. Amount is lakhs

Depreciation of about 14 Cr is added back as it is a non-cash expense. As mentioned earlier the company is not a working capital intensive business. Look at the adjustments in working capital, is a v ery small inc rease in inventories and receivables and payables and other liabilities have increased by 18.67 Cr whic increased the CFO. The free cash flow (FCF) = Cash flow from operations – cash flow from investing activities is also positive. The FCF at th of FY16 was 54 Cr, the free cash flow is used to reduce debt and pay dividends to shareholders. The difference between and cash flow from financing activities is the increase/decrease in cash for that year. This amount is adjusted with the op cash balance to get the closing cash balance. The increase in cash was 25 Cr at the end of FY16 and closing cash bal stood at 28 Cr. ROIC & ROE analysis:

Two important ratios that an investor must compulsorily analyze is the return on invested capital (ROIC) and return on e (ROE). The investor must also dig deep to find out what is driving these ratios. Return on equity = Net income/owner’s equity The above is the formula for calculating the ROE, However, an investor must use DUPONT analysis as to check what is d the ROE. The ROE can be broken up as below ROE = RNOA + FLEV (ROCE-NBC)

Where RNOA = Return on net operating assets/ ROIC calculated as EBIT*(1-T)/ Invested capital aka net operating assets (post tax) FLEV = Financial leverage calculated as Net financial obligations/shareholder’s equity ROCE-NBC = Operating spread If t he company has no leverage then ROE = RNOA. If the firm has leverage then the difference between ROE and RNOA i leverage that the company is using and it is this figure which is contributing to the ROE. If the company has net financial a then an investor must use the below ROE = RNOA – (NFA/CSE*(RNOA-RNFA))

http://www.drvi jaymali k.com/2017/02/analysi s-wonderla-holidays-li mited-equity-research-r eport.html?utm_source=feedburner&utm_medium=email&utm_c… 10/22

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Analysis: Wonderla Holidays Limited | Vijay Malik Where NFA = net financial assets RNFA = return on net financial assets and is calculated as net financial income/ NFA In this case, if there is positive spread between RNOA and RNFA, it reduces the ROCE. The reason for it being shareholder’s funds is invested in financial assets and if the financial assets earn less than the operating assets, ROCE is than the RNOA. Let us apply the s ame to Wonderla Holidays Limited and see where the company stands. Find below the snapshot of RO Wonderla Holidays Limited.

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Let me explain the ROE numbers for FY16 in detail: Return on net operating assets /ROIC is the first part of analyzing the ROE. ROIC is driven by operating margins, which is calculated as EBIT/Sales and capital turnover, calculated as Sales/ Invested capital (net operating assets). The operating margins of the company at the end of FY16 were 34% not much change as compared to the previous year. The asset turnover has fallen to 0.77 from 1.11; the reason for the same has been explained earlier. The post-tax ROIC stood at 17%. The company has net financial assets and as explained earlier the ROE of a company having net assets is reduced as usually financial assets earn less than the operating assets. The company had net financial assets to the tune of 107 Cr at the end of FY16 and financial leverage was 0.27. The company earned an average of 5% on its assets, calculations of the same have been shown above. About 3% points are reduced from the ROIC to arrive at the ROE. The ROE of the company stands at 14%. Wonderla Holidays Limited comes out with flying colors after looking the above financial analysis. The company has no debt, strong balance sheet, growing its topline at a respectable pace, the growth is profitable as e from the healthy ROIC’S and ROE’S. The company is reporting healthy cash flows, also indicating that any future expan can be done with internal accruals. The company scores very well on all the financial parameters.

Valuation “If the business earns 6% on capital over 40 years and you hold it for that 40 years, you’re not going to make much difference than a 6% return even if you originally buy it at a huge discount. Conversely, if a business earns 18% on capital over 20 to 30 years, even if you pay an expensive looking price, you’ll end up with a fine result” – Charlie Munger For the above, it is very clear than investors would do well to identify businesses which earn higher returns on capital. I business earns 6% on capital and even if it reinvests everything in the business y ou are not going to make more tha return. Where does Wonderla Holidays Limited fare on this parameter? The company’s pretax ROIC for FY16 was 24%, the average pretax ROIC for the period FY09-16 was 33%.


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Analysis: Wonderla Holidays Limited | Vijay Malik The company comes out with flying colors on this parameter. The company is able to generate very healthy ROIC, in sp the company operating in a fixed asset-heavy industry. It is also important for an investor to identify companies where the deploy incremental capital at higher rates of return. “Leaving the question of price aside, the best business to own is one that over an extended period can employ large amounts of incremental capital at very high rates of return”. – Warren Buffett, 1992 shareholder letter Can Wonderla Holidays Limited then deploy additional capital at higher rates of return? They certainly have opportunities to do so. They want t o spread their footprint across the country and good thing to note i they want to do it one park at a time. Will they earn higher returns on capital on these investments? Only time will tell. However taking a cue from the pas looking at their record I think they would earn a decent return on this additional capital. As value investors, we need to figure out the intrinsic value of the company. What i s the intrinsic value? Find below what Graham and Warren Buffett have to say about intrinsic value. “A general definition of intrinsic value would be that value which is justified by the facts – e.g. assets, earnings, dividends, definite prospects. In the usual case, the most important single factor determining value is now held to be the indicated average future earning power. The intrinsic value would then be found by first estimating this earning power, and then multiplying that estimate by an appropriate capitalization factor”. – Ben Graham “Intrinsic value is an all-important concept that offers the only logical approach to evaluating the relative attractiveness of investments and businesses. Intrinsic value can be defined simply: it is the discounted value of the cash that can be taken out of the business during its remaining life” – Warren Buffett “The calculation of intrinsic value though is not simple. As our definition suggests, intrinsic value is an estimate 35 rather than a precise figure. Two people looking at the same set of facts will almost inevitably come up with at least slightly different intrinsic value figures” – Warren Buffett From the above it is clear that Intrinsic value is an estimate and not a precise figure It is based on earnings power of the business. How much cash will as an owner of a business get after spending for capital expenditure for staying competitive?

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Buffett talks about owners earnings, which is different from accounting earnings. There are few adjustments made to rep earnings to arrive at owner’s earnings. The objectiv e of making these adjustments is t o figure out what cash will the own after such adjustments are made. Hence owner’s earnings are a better estimate of the earnings power of a company rather accounting profits that the company reports. Finally, we as value investors need to also understand at what rate the intrinsic value will compound. I recently went through John Huber’s five-part posts on ROIC and got insights into this. John runs a blog base hit investing would highly recommend reading his five posts on ROIC. In one of the article John talks about the intrinsic value compou rate and it is arrived at as below Intrinsic value compounding rate = ROIC * Reinvestment rate

So if a company earns 6% on capital and reinvests all its earnings, its intrinsic value will grow by only 6%. I am now going to apply the concepts that I have discussed above to value Wonderla Holidays Limited.

The owner’s earnings of Wonderla Holidays Limited taking the FY16 figures come to 96 Cr. I am calculating the pretax owner’s earnings and hence I start with the EBIT. The company has no debt and interest expenses are negligible. Depreciation is added back as it is a non-cash charge, working capital changes are added/subtracted depending on the movement of working capital in that year. In this case, working capital is added. Maintenance capex is reduced as this is the amount that the company must spend to stay in business, the management in its concall has stated that they have maintenance capex of 8-10 Cr per park, hence I have taken 25


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Analysis: Wonderla Holidays Limited | Vijay Malik Cr. I have added back 18 Cr as advertising expenses, which is the average 3 Yr advertising expenses. The current market cap of the company is 2100 Cr, one can also adjust for debt and cash and arrive at the enterprise value. In this case, the EV of the company is 1993 Cr. The company trades at 21-22 times owners earnings. One would be paying a 20X multiple to enter this business currently (assuming 20X although the business is trading at 21-22X, done for ease of calculation). The next step is to ascertain if it is ok to pay a 20X multiple for this business. Earlier I had mentioned as to how one can ascertain the intrinsic value compounding rate. Wonderla Holidays Limited’s p ROIC for the period FY09-16 is 33% and dividend payout is 20% over t he years, hence it ploughs back 80% of it s earning assume that Wonderla Holidays Limited can earn 30% ROIC and maintain the same reinvestment rate t hen its intrinsic v alu compound by 30%*80% = 24%-25%. If 1$ of earnings grows at 25% for 10 years then the company will have 9.31 earnings at the end of 10 years (1*(1.25) ^ also assume that the ending multiple at the end of 10 years would be 15X. Hence the price after 10 years would be 9.31 140. So the return one can expect for a st ock trading at 20X, growing intrinsic v alue by 25% and assuming an exit multiple/endin of 15X is 21% CAGR (140/20)^(1/10)-1). There would definitely be other ways to think about the valuations of Wonderla Holidays Limited. These assumptions that I used may or may not play out. After going through the business, Wonderla Holidays Limited definitely looks like a wonderful business to be investe 35 However one needs to ascertain what the fair value would be to enter this business. This is not a recommendation to buy/sell the stock. Disclosure: I do not hold in a personal capacity as of this writing. This is not a buy/sell/hold recommendation. This docum only for educational purpose. I am not a SEBI registered analyst. Please contact an authorized investment advis investment advice on this scrip. 12

Regards, Chetan Chhabria

Author’s Response

Dear Chetan, Thanks for sharing your analysis of Wonderla Holidays Limited with t he author and readers of the website. We appreciat hard-work put in by you in the analysis. Your analysis stands out in terms of diligence with respect to the in-depth re undertaken by you of various voluminous documents like DRHP, Annual reports along with other public resources conference calls & their transcripts etc. We thank you on behalf of all the readers of our website as your write-up is a comprehensive work on Wonderla Holidays Li and any investor who wishes to start the analysis of the company would be able to commence on a very firm footing reading your analysis. You have been able to cover the analysis of the company from multiple aspects like business & industry descri competitive advantages, management as well as valuation analysis. Any reader interested in knowing about Wonderla Holi Limited would find value in your analysis. Wonderla Holidays Limited came out with its I PO in FY2015, therefore, the publicly available data contains financial deta last 9 years (FY2008-16). Let us analyse the performance of Wonderla Holidays Limited over last 9 years.


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Wonderla Holidays Limited, as mentioned by you, has been growing its sales at a good pace of 20-25% year on year for l years (FY2008-16). The growth rate has been very good until now. Wonderla Holidays Limited has operationalized a new amusement park at Hyderabad in March 2016, which the com expects to help it in maintaining the growth momentum for next few years. Moreover, the company has plans to start work new amusement park in Chennai, which would show visibility of growth once the revenues from Hyderabad reach to maturity/optimal levels. The revenue growth of Wonderla Holidays Limited comes from operationalization of new parks, adding new rides in exi parks, annual price hikes, and focus on change in revenue mix from predominantly entry fees to food & beverages (F&B However, the most prominent factor, which is expected to contribute to the bulk of the growth going ahead would be new additions. The current plans for the next park at Chennai seem to have faced some hurdles. As per the management conference cal analysts in February 2017, Wonderla Holidays Limited disclosed that it is facing land acquisition problems due to challenges. An investor should monitor the developments related to the development of new parks closely to understand f growth prospects of the company.


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Analysis: Wonderla Holidays Limited | Vijay Malik Wonderla Holidays Limited has been able to maintain its profitability at a good level over the years. An investor would notic it has been reporting operating profitability margins (OPM) exceeding 40% for the almost entire reported period (FY200 barring FY2008. The operating profitability margins of Wonderla Holidays Limited are the highest among the industry. When we compare the of the company with its listed peers: Adlabs Entertainment Limited and Nicco Park and Resorts Limited, then we notice th OPM of Wonderla Holidays Limited is much higher than the profitability of both the listed peers.

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Read: How to do Business Analysis of Companies Having an operating profitability margin higher than peers in a business, which is based on branding and cust omer service i of the evidence of the competitive advantage of the company. However, the investor would also notice that the OPM of Wonderla Holidays Limited has been witnessing steady decline the years and have reduced from 51% in FY2011 to 41% in FY2016. The trend in the decline in OPM has been accentuat the current financial year (FY2017), when the company has reported OPM of 20% and 19% in Sept 2016 and December quarters respectively. The company has clarified that the reduction in OPM is on account of higher employee costs due to the operationalizati new park at Hyderabad, provisioning for disputed taxes and most importantly on account of higher marketing spend especi Hyderabad. While reading through the conference call transcript of February 2017, the investor would realize that Wonderla Holidays Li has done mistakes about its pricing strategy related to opening months of Hyderabad Park by giving higher discounts, spoiled the customer experience as it resulted in overcrowding of the park. The poor customer experience has impact e company reputation in Hyderabad, which the company has acknowledged to the stakeholders.

As a result, now Wonderla Holidays Limit ed has to do s ignificantly higher marketing s pends in Hyderabad including video of advertising, which is very costly and was not being done by the company in the past. I n the past, the company has stu print/still mode of advertising.


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The footfalls in the Hyderabad seem to have improved, however, as highlighted in the above sections of the conference cal company seems to have toned down its footfall expectations in Hyderabad in FY2017 from earlier 7 lac to now 6 lac. Moreover, the higher advertising spend along with other factors has led to t he operating profitability margins falling drastica 19% in December 2016 quarter, which is more in line with the OPM of its peers (Nicco and Adlabs). An inves tor s hould keep a close watch on the operating margins of t he company going ahead to m onitor whether the c omp able to recover to its previously high OPM levels or the current levels would become the new normal. As mentioned by you in the write-up, an invest or would appreciate that Wonderla Holidays Limited operates in a business, the existence of an amusement park in a locality gives the existing owner huge competitive advantage. Other players usual not come up with competing parks within the catchment area of an existing park. In such an insulated business scenario, often than not, it is the existing player on its own who is primarily responsible for its poor performance if any. Read: Why Management Assessment is the Most Critical Factor in Stock Investing?

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Therefore, an investor would need to track the company’s actions and their impacts as it is most probable that the fault wo within the decisions of the company itself. While going through the conference call of February 2017, the investor would that the company has got its pricing wrong in Bangalore Park as well.

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The customer would notice that in Hyderabad Park, the low pricing of tickets has impacted the customer experience where the Bangalore park, it is the higher pricing of water park costumes, which is impacting the customer experience. It is a good sign that the company has identified and acknowledged its issues on both the locations and has taken/plans to remedial steps to improve the customers’ experience. Nevertheless, an investor should keep it in mind that for such insulated businesses, the origination of the problems starts from within the company and its decisions and less from outside. Even if the companies in such businesses are not to expand in terms of new parks, they can always show a decent growth only from incremental additions in the existing and inflation-linked price hikes provided they keep on managing their operations efficiently. As with the OPM, the net profit margin (NPM) of Wonderla Holidays Limit ed is also at a good level of 25-29% over the year has witnessed a decline to 6% in Sept 2016 and Dec 2016 quarters. We advise that the investors keep monitoring the profitability margins of Wonderla Holidays Limited going ahead. Over the years, Wonderla Holidays Limited has a tax payout ratio of over 30%, which is in line with the corporate tax prevailing in India. Read: How to do Financial Analysis of Companies While assessing the operating efficiency parameters, an investor would notice that Wonderla Holidays Limited has a ver net fixed ass et turnover (NFAT) over the years. NFAT used to be less t han one until FY2011 and has sinc e improved to 1. FY2016 as it used its existing parks at Bangalore and Cochin more efficiently and produced higher revenues from these ass However, with the operationalization of Hyderabad park the NFAT at Sept 30, 2016, has again fallen less than one as the a of Hyderabad park, which were shown as part of capital work in progress (CWIP) on March 31, 2016, are now part of assets at Sept 30, 2016.


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Read: Understanding the Quarterly Results Filings of Companies At Sept 30, 2016, the f ixed ass ets stand at ₹318 cr. whereas the revenue of las t 12 months (Oct 2015 – Sept 2016) is ₹234 NFAT of less than one is a very precarious situation for any company as it indicates that for generating additional sales g of ₹1, the company needs to invest more than ₹1 in new fixed assets. The same has been true for its established parks e.g. at Bangalore as well as the newly launched park at Hyderabad. Q3-FY2017 results presentation of Wonderla Holidays Limited reflects that the Bangalore park is generating a revenue of ₹30 cr. per quarter, which is about ₹120 cr. per annum. As mentioned by the company every new park costs about ₹250-3 of investment including land. Such heavy capital investment for generating every rupee of incremental sales puts companies in the very precarious situ 35 It is essential that such companies earn high profitability on every rupee of revenue generated by the heavy capital invest done by it. Otherwise, it is very likely that the companies would either have to leverage themselves (or resort to equity dil to meet the future growth requirements (new parks) or they would have to remain content without doing additional cap maintain the balance sheet strength. Read: 5 Simple Steps to Analyse Operating Performance of Companies An investor would notice that Wonderla Holidays Limited is generating an average CFO of about ₹55 cr over last 5 12 (FY2012-16) when its two mature parks (Bangalore and Cochin) have been functioning. Assuming ₹8-10 cr. of mainten capex of each park, Wonderla Holidays Limited would have to spend about ₹20 cr on maintenance capex of Bangalor Cochin parks and it would have saved about ₹35 cr. each year for new capex (Hyderabad park) for last 5 years. A rough calculation shows us that Wonderla Holidays Limited would have f unded the ₹250 cr. for the Hyderabad park by w ₹175 cr. of internal accruals (₹35 cr * 5) and the balance ₹75 cr. from the IPO proceeds of ₹180 cr. (IPO in FY2015). This le the company with about 105 cr. of IPO proceeds, which it may use for Chennai park. An inves tor would notice that t he funding through the IPO proceeds helped Wonderla Holidays Limit ed maintain it s near deb position, otherwise, the company would have to bridge the gap between the cost of the Hyderabad park and the internal ac through debt. Moreover, it is not that the IPO did not have any cost for the company. As per the FY2015 annual report, the company ₹11.25 cr. as IPO charges to various parties like merchant bankers, which is about 6.25% of the total IPO size (= 11.25/ 6.25% as fee/charges is a significant amount of commission to be paid for raising money.

Read: Understanding the Annual Report for a Company Such a situation of raising high-cost IPO funds arose during the times the company was generating very good OPM of 45% consistently during FY2012-16. The proposed park at Chennai, as per management, is expected to cost about ₹300 cr. At Sept 30, 2016, Wonderla Holi Limited had a cash + current investment balance of about ₹82 cr.


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Analysis: Wonderla Holidays Limited | Vijay Malik So the company needs to generate the balance about ₹220 cr. from internal accrual over next 3 years, if the company complete the park by Sept 2019. We have noticed above that two mature parks (Bangalore and Cochin) are generating about ₹35 cr. of total FCF (i.e. abou cr. per park) per year. Assuming early optimal utilization of Hyderabad park and same 45% OPM, the company might gen about ₹50 cr. of FCF (post maintenance capex of all the parks) each year, which would have generated about ₹150 cr. the of internal accruals (assuming 45% OPM) over next 3 years to fund the development of Chennai park. The balance ₹70 cr to be raised by additional debt/equity dilution. The gap of ₹70 cr. in the financial closure from remaining IPO proceeds and internal accruals is assuming OPM of 45% for park. However, as we have noticed that since last 2 quarters, the OPM of Wonderla Holidays Limited has drastically come to about 20%, therefore, it becomes essential that the company recover its profitability in a timely manner otherwise financial gap would increase significantly and the current strength of the balance sheet would not remain at the same levels. Investors also need to keep in mind that the Chennai project is currently facing land acquisition related challenges and any might add to the cost of the project and as a result, the funding gap. (Please note that these are rough calculation and do not factor in various outflows lik e dividend payments, interest co existing small debt etc. and also do not tak e into account any expense already done for land acquisition of Chennai par there is CWIP of about ₹46 cr. at Sept 30, 2016) The above analysis would indicate to investors that it is essential for companies with low NFAT to earn high profita otherwise, maintaining the balance sheet strength becomes a challenge and we might see companies falling into a debt tr order to chase non-profitable debt-funded capital intensive growth. Examples of two companies with low NFAT and low profitability, which fell into debt trap while chasing the non-profitable funded capital intensive growth are Amtek India Limited (Castex Technologies Limited) and Ahmednagar Forgings Li (Metalyst Forgings Limited). 35

Investors should read these cases to understand the stress a capital intensive business with low NFAT can put on the bal sheet of the company if such a business is not associated with high profitability margins. Read: Analysis: Amtek India Limited (Castex Technologies Limited) Read: Analysis: Ahmednagar Forgings Limited (Metalyst Forgings Limited) 12

It is also essential that companies operating in capital intensive business manage their working capital very efficiently. T because even if the company reports high profitability numbers but if these profits are not converted into cash and are stu inventory and receivables, then the company would be facing a cash crunch and would again fall into debt seeking environ In the case of Wonderla Holidays Limited, it is a good characteristic of the business that t he sales of the company a advance/cash payment basis and do not involve credit sales. This is the reason that the company reports the very low le receivables (₹1 cr.) when compared to sales of ₹205 cr. in FY2016. Similarly, the company does not need to keep a l inventory on its books as most of its business operation/services are the rides, which are fixed assets. Such business characteristics put the company in an advantageous position from the perspective of cash flow managemen We can see that over last 9 years (FY2008-16), the company has reported cumulative cash from operations (cCFO) of ₹372 cr. against cumulative net profit after tax (cPAT) of ₹263 cr. over the same period indicating that entire profits have converted into cash. With working capital situation under control, Wonderla Holidays Limited only needs to keep operating its fixed assets (p operating efficiently and with high profitability margins. Wonderla Holidays Limited is currently available at a P/E ratio of about 56 (based on TTM EPS), which does not offe margin of safety in the purchase price as described by Benjamin Graham in his book The Intelligent Investor . You may read more about estimating the margin of safety in the target investment in the following article: Read 3 Simple Ways to Assess "Margin of Safety": The Cornerstone of Stock Investing If we look at the prevailing P/E ratio (56) of Wonderla Holidays Limited, from the approach to valuation that we follow assessing the investable P/E ratio of stocks, then we realize that the P/E of 56 is at a very high level than what we would been willing to pay for the company. You may read more about our approach to deciding the investable P/E ratio of a stock in the following article: Read: 3 Principles to Decide the Investable P/E Ratio of Stocks We do not use parameters like ROE, ROIC and owner’s earnings in our stock analysis approach, therefore, we would not b to provide our inputs on the same. In your assessment, you have assumed Free cash flow (FCF) = CFO - CFI, whereas in our assessm ent, we assume F CFO - Capital Expenditure. Capital expenditure is a part of CFI, however, there are other items like increase or decrease in current investments, divi income etc. which are part of CFI, which we do not adjust while calculating FCF. Overall, Wonderla Holidays Limited seems to be a company growing at a decent pace despite being in a capital inte business as its growth had been associated with high profitability margins and healthy cash collections from busi operations. The company could maintain a strong balance sheet as it funded the gap in the capex for Hyderabad park th IPO proceeds rather than going for debt funding.


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Analysis: Wonderla Holidays Limited | Vijay Malik The above analysis indicates that going ahead in all probability, the remaining cash from the IPO proceeds and the int accruals from exis ting park operations would not suffic e for meeting the financial closure requirement of Chennai park an company might have to resort to debt/further equity dilution in future. The current healthy balance sheet of the company with good credit rating of AA- (ICRA, August 2016), would ensure that the company might not face any challenge in raisin debt to achieve the financial closure for the Chennai park. Read: 7 Important Reasons Why Every Stock Investor Should Read Credit Rating Reports In light of such a situation maintaining a high profitability, margin is mandatory for the company to keep the strength o balance sheet intact. Therefore, the declining profitability margins of recent quarters are a cause of concern and need tracked closely by investors. Investors may use the following framework to properly monitor the stocks in their portfolio/watchlist: Read: How to Monitor Stocks in your Portfolio These are my views about Wonderla Holidays Limited. However, you should do your own analysis before taking any invest related decision about Wonderla Holidays Limit ed. You may use the following steps to analyse the company: " How to do Detailed Analysis of a Company " Hope it helps! Regards,

P.S:

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To know about the stocks in my portfolio, their relative composition, cost price, details of the last 10 transaction as well as to get updates about any future buy/sell transaction in my portfolio, you may subscribe to the premium service: Follow My Portfolio with Latest Buy/Sell Transactions Updates (Premium Service) The financial table in the above analysis has been prepared by using my customized stock analysis excel template which is now compatible with screener.in. This customized excel template is now available for download as a premium feature. For further details and download: Click Here 12

You may learn more about our stock analysis approach in the e-book: “Peaceful Investing – A Simple Guide to Hassle-free Stock Investing” You may read “Selecting Top Stocks to Buy - A Step by Step Process of Finding Multibagger Stocks ” to select fundamentally good stocks for investment. I have used the framework described by me in the article “ 5 Simple Steps to Analyse Operating Performance of Companies ” to analyze the companies discussed in this article. An investor can use this framework of simple step to analyze any company she wishes to explore. I have used the financial data provided by screener.in and the annual reports of the companies mentioned above while conducting analysis for this article.

DISCLAIMER

Registration Status with SEBI: I am registered with SEBI as an Investment Adviser under SEBI (Investment Advisers) Regulations, 2013

Details of Financial Interest in the Subject Company: Currently, I do not own stocks of the companies mentioned above in my portfolio.

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Posted by Dr. Vijay Malik Labels: Stocks' Analysis Dr. Vijay Malik A Doctor turned Inv estor. SE BI Registered Investment Advisor. A n avid traveler, a bik er and a writer. Blogs at www.drvijaymalik.com Has done MBA (IIFT Delhi), CFA (USA) and FRM (USA). Active in equity markets since 2

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Join the discussion… Murtaza Nagarwala • 7 hours ago

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> Murtaza Nagarwala • 7 hours ago

Thanks! • Reply • Share › KAMAL GARG • 13 hours ago

Really absolutely great analysis and work done both by Chetan Chabaria - the querist, and of course Dr. Vijay Malik. e actually need more such kind of detailed analysis of many such investment opportunities. • Reply • Share › Vijay Malik

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> KAMAL GARG • 13 hours ago

Hi Kamal, Thanks for writing to us. We are happy that you found the article usef ul. All the best for your investing journey! Regards Dr. Vijay Malik • Reply • Share › Ravikumar • 15 hours ago

Thank you very much Vijay & Chetan.. God bless you • Reply • Share › Vijay Malik

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> Ravikumar • 13 hours ago

Hi Ravi, Thanks for writing to us. We are happy that you found the article useful. All the best for your investing journey! Regards Dr. Vijay Malik • Reply • Share › Harish Naidu • a day ago


2/28/2017

Analysis: Wonderla Holidays Limited | Vijay Malik , . I have one Query regarding value created to shareholders per rupee retained,how can we know abou Total increase in M,cap for 10 years..i.e where can i get the source of data?? • Reply • Share › Vijay Malik

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> Harish Naidu • 13 hours ago

Hi Harish, Thanks for writing to us! You may refer to the last question in the following article: http://www.drvijaymalik.com/20... All the requisite data is available in the screener export to excel sheet. Hope it answers your concerns. All the best for your investing journey! Regards Dr. Vijay Malik • Reply • Share › Ashish Awasthi • a day ago

Vijai sirji, brilliant post mortem once again. Though, as per your style of peacefulinvesting, this stock a 35 pe was not worth this much effort . Secondly, What can be concluded in a nutshell - High Net operating margins may not be the characte o laud at if the incremental sales per unit of additional capital employed (NFAT) is not that great . Thirdly, 15 cr of FCF from investment of 200-300 cr itself tells the sorry state of affairs. Addition of ne parks would never help. Increasing footfalls nd ticket prices might actually improve the balance sheet 12 self sustained expansion. • Reply • Share › Vijay Malik

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> Ashish Awasthi • 13 hours ago

Hi Ashish, Thanks for writing to us. We are happy that you found the article useful. Thanks for a nice summary of the key learning from the analysis. You have identified the corre aspects. All the best for your investing journey! Regards Dr. Vijay Malik • Reply • Share › Kiran Ganesh • 2 days ago

Great work Dr. Vijay, Every time if i got any new stocks to my radar, After my personal analysis iam checking for your stock analysis on your website, like that i learned a lot & benefited a lot. Thanks Dr.stock • Reply • Share › Vijay Malik

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> Kiran Ganesh • a day ago

Hi Kiran, Thanks for writing to us. We are happy that you found the article useful. All the best for your investing journey! Regards Dr. Vijay Malik • Reply • Share ›

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