Wonderla Holidays, a leading amusement park operator, witnessed its share price surge by 14.5% after the company launched its Qualified Institutional Placement (QIP) issue. The floor price for the QIP was set at ₹829.74 per share, and the stock hit an intraday high of ₹947.95 on Wednesday, marking a notable 13.59% intraday gain.

Wonderla Holidays QIP and Share Price Movement

The Wonderla Holidays stock opened at an intraday low of ₹842.60 per share on BSE but quickly gained momentum, hitting an intraday high of ₹947.95. The surge follows the company’s announcement of the QIP launch, offering institutional investors the opportunity to buy shares at a floor price of ₹829.74.

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, the stock has seen a 12% surge in the current trading session. On the weekly chart, the stock has broken out of a trading range, supported by strong volumes. Traders holding long positions are advised to continue riding the trend, with potential target levels around ₹1,050. However, fresh entrants are advised to wait for potential dips, with strong support found in the ₹880–₹870 zone.

Q2 Results: A Mixed Bag

For the quarter ending November 5, 2024 (Q2FY25), Wonderla Holidays reported an 8.85% year-on-year increase in profit. However, revenue saw a decline of 10.35%, despite achieving the second-highest revenue in the company’s history for a second quarter.

In total, Wonderla recorded 451,000 visitors across its parks, with the Bangalore Park attracting the most visitors (196,000), followed by Kochi Park (139,000), Hyderabad Park (92,000), and Bhubaneswar Park (24,000).

Despite facing challenges such as shifting consumer preferences and natural disruptions, including landslides in Kerala and floods in Andhra Pradesh and Telangana, Wonderla has shown resilience in its operations. The footfall growth reflects the sustained popularity of its amusement parks.

Arun K Chittilappilly, Managing Director of Wonderla Holidays, commented:

“Wonderla’s achievement of its second-highest Q2 revenue since inception highlights the brand’s resilience and appeal, even in a dynamic market environment. This quarter’s footfall of 4.51 lakh reflects our dedicated efforts across Bangalore, Kochi, Hyderabad, and Bhubaneswar.”

Investment Outlook and Technical Analysis

The 14.5% surge in Wonderla Holidays' share price following the QIP announcement is a clear indicator of strong market sentiment, particularly with the stock trading near ₹950 in intraday levels. The technical outlook remains positive, with support levels around ₹880–₹870. Investors who already hold positions can continue to ride the upward trend, while new investors should await potential pullbacks to enter at better prices.

Despite a decline in revenue for Q2, the profit growth and significant visitor footfall at the parks show Wonderla’s ability to navigate market disruptions. However, it is important to consider the stock's performance in light of overall market conditions and QIP pricing.

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