We have researched Wonderla & have attached the report. Please find our report and our findings below.
The company being the first mover and having been captured the market in the cities where they have presence, it will take significant time for any competitor to pose any kind of threat to Wonderla. It takes significant amount of time from inception to execution for a theme park. The company has negative working capital and exceptionally great profit margins. The company is fundamentally very sound and everything is positive about the performance.
But at the CMP the company’s shares are highly over valued. All the positives of the company have been captured in the price. It will take sometime for the new factors to come in.
For making any fresh entry into the company, one should wait for a correction in the share price.
It is always advisable to look for companies with a high upside potential but buying them at the right price is as important as the company’s fundamentals. Although the company is wonderful in all aspects, the valuation doesn’t provide us enough comfort to buy at this level.