Stock Performance and Market Context
On the day the new low was recorded, Wonderla Holidays Ltd’s stock fell by 1.13%, underperforming the Leisure Services sector by 0.91%. This decline extended a two-day losing streak during which the stock delivered a cumulative negative return of 2.71%. The share price currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
In contrast, the broader market showed resilience. The Sensex opened 142.71 points higher and was trading at 82,462.25, up 0.23% on the day. Despite trading below its 50-day moving average, the Sensex remains within 4.48% of its 52-week high of 86,159.02, supported by gains in mega-cap stocks. This divergence highlights the relative weakness of Wonderla Holidays Ltd compared to the overall market.
Long-Term and Recent Returns
Over the past year, Wonderla Holidays Ltd’s stock has declined by 24.19%, a stark contrast to the Sensex’s positive 10.52% return over the same period. The stock’s 52-week high was Rs.716.6, indicating a significant drop of approximately 34% from that peak. This underperformance extends beyond the last year, with the company lagging the BSE500 index over one, three, and three-month periods.
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Financial Metrics and Profitability Trends
Wonderla Holidays Ltd has reported negative earnings results for eight consecutive quarters, reflecting ongoing pressure on profitability. The company’s profit after tax (PAT) for the nine-month period stands at Rs.71.83 crores, representing a decline of 26.89% year-on-year. This contraction in earnings has contributed to the stock’s subdued performance.
Return on Capital Employed (ROCE) for the half-year period is notably low at 6.30%, while Return on Equity (ROE) is measured at 4.7%. These figures indicate limited efficiency in generating returns from capital invested. Despite this, the stock trades at a price-to-book value of 1.7, suggesting a premium valuation relative to its peers’ historical averages.
The company’s inventory turnover ratio for the half-year is 24.82 times, the lowest recorded, which may reflect challenges in managing operational cycles effectively. Over the past year, profits have fallen by 31.5%, further underscoring the financial headwinds faced by the company.
Institutional Investor Activity
Institutional investors have reduced their holdings in Wonderla Holidays Ltd by 2.08% in the previous quarter, bringing their collective stake down to 16.71%. Given their typically rigorous fundamental analysis capabilities, this decline in institutional participation may be indicative of cautious sentiment regarding the company’s near-term prospects.
Debt and Sales Growth
On a positive note, the company maintains a low average debt-to-equity ratio of zero, reflecting a conservative capital structure with minimal leverage. Additionally, net sales have demonstrated healthy long-term growth, expanding at an annual rate of 58.77%. This sales growth, however, has not yet translated into improved profitability or stock performance.
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Summary of Key Ratings and Scores
MarketsMOJO assigns Wonderla Holidays Ltd a Mojo Score of 30.0, categorising the stock with a Sell grade as of 10 Feb 2026. This represents an upgrade from a previous Strong Sell rating, indicating a slight improvement in outlook, though the overall assessment remains cautious. The company’s market capitalisation grade is rated at 3, reflecting its relative size and liquidity within the Leisure Services sector.
Conclusion
Wonderla Holidays Ltd’s stock reaching a 52-week low of Rs.472.5 highlights the ongoing challenges faced by the company amid a broader market environment that remains positive. Despite healthy sales growth and a conservative debt profile, the persistent decline in profitability and reduced institutional interest have weighed on the share price. The stock’s valuation premium relative to peers, combined with subdued returns and low capital efficiency metrics, continues to characterise its current market position.
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