2 smallcaps hit 52-week high in anticipation of strong festive season

Two smallcap stocks, Mahindra Holidays and Wonderla Holidays, hit their respective 52-week highs in Tuesday's trade. Analysts expect a strong demand during the upcoming festive season which, they believe, is fuelling the rally in these stocks.

Shares of Mahindra Holidays on Tuesday gained close to 9 per cent and scaled their fresh 52-week high of Rs 313.6 per share. The scrip has logged the biggest single-day gain since March 22, 2022. Volumes at the counter rose over three times the 10-day average trading volume. The scrip in a month’s time has zoomed 18 per cent.

Shares of Wonderla rallied close to 5 per cent, hitting their fresh 52-week high of Rs 444.60 per share on the NSE. In the last one month, the stock has gained about 21 per cent.

In the recent past, the company inked a contract with the Odisha government for developing an amusement park in Bhubaneswar for which it has signed a 90-year lease on 50.63 acres of land. It entails total capex of Rs 130 crore over 24-30 months.

Wonderla Holidays reported strong results in Q1FY23 with revenues surpassing pre-Covid levels (i.e. Q1FY20) by 27 per cent to Rs 149.4 crore. Further, controlled other expenses also helped the company to achieve an EBITDA margin of 61.3 per cent, which was 300 bps higher than the pre-Covid level.

ICICI Direct, which is bullish on Wonderla, said, "Incorporating a strong Q1 performance, we expect revenue and EBITDA CAGR of 74 per cent and 203 per cent, respectively, for FY22-24E. The company has a debt-free balance sheet along with net cash/liquid investments of around Rs 170 crore as of June 2022 that will take care of its expansion plans, going ahead."

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