Imagica world
CMP 40.5
Market cap 1660 Crs
Ent Value 1700 Cr
In past Company enjoyed Peak EV of Rs 6500 Crs with ( debt 2000 + equity 4500)
And now company is debt free
FY 22 EBIDTA Rs. 26 Crs
- inspite of Covid year
- topline half of normal year
- amid management restructuring.
So in a normal year and local travel boom, it can post EBIDTA of Rs 100 Crs plus
Now company is virtually debt free and having tax losses
So almost all EBIDTA ( barring maint capex) would be equal to cash profit
Business Proposition
- roughly 300 acres land
- it’s India’s largest theme park
- proximity of most populous and rich metro Mumbai and Pune
- huge entry barrier
- RKD is owning Novotel inside premises ( He bought just the hotel for 211 cr in 2017)
Company had a chequered past due twin cardinal sin
- state of art capex thru excessive debt
- high handed management with no prior experience
Restructuring has washed away away both these twin cardinal sins
-Now company is debt free and capital employed has been significantly shrunk.
-The new management ‘ The Malpani Group' has a history of running amusement parks efficiently.
Now compare it with Wonderla. Wonderla makes a normalised PAT of 55-60 cr (precovid) and trades at 40x PE. If you apply Wonderla multiples then stock can be multibagger from here also
Even on asset replacement basis. 300 acre land parcel on which the amusement park is built at Khopoli (between Mumbai and Pune) can be valued at conservative rate of Rs 20 cr per acre giving a value of Rs 6k cr.
New CG Power in the making