Wonderla no longer amusing

Wonderla Holidays is not exactly having a fun time today. Showing some good volumes, the stock has slumped over 4% and Rs.270 levels.

And this slump is more on account of upcoming rivalry – the IPO of Adlabs Entertainment, which plans to raise almost Rs.450 crore, scheduled to open on 10th March and close on the 12th. Market traders say that existing investors are exiting out of this amusement stock to participate in that of Adlabs and in the coming days, the counter is expected to see some more churning.

Compared to the poor performance it had shown for Q2, the numbers were much better for Q3 wherein net profit rose from Rs.12 crore to Rs.14 crore. But this improvement was on mainly on account of lower operating costs and higher other income.