Prabhudas Lilladher has issued a buy rating on Imagicaaworld Entertainment with a target price of ₹64 in its research report dated May 18, 2026. According to the brokerage's analysis, the recommendation is based on the company's strategic decision to pursue an investment in Shanku's water park (an existing operational asset) over upcoming greenfield exposure in Ahmedabad, which has been shelved. This strategic move is expected to reduce the capex-to-revenue journey considerably without unduly stretching the balance sheet.
The brokerage has increased EPS estimates by 3% for FY27E as it factors in the consolidation of Shanku's water park from Q2FY27E. As reported by Prabhudas Lilladher, the company expects sales/EBITDA CAGR of 14%/30% over FY26-FY28E due to base effect and addition of two parks in Sabarmati and Mehsana. The target price of ₹64 is based on a sum-of-the-parts (SoTP) valuation methodology, with the park/hotel business valued at 15x FY28E EBITDA, down from the earlier valuation of 17x.
Imagicaaworld reported consolidated net sales of ₹91.86 crore for March 2026, representing a 2.69% year-on-year decline from ₹92.08 crore in December 2025. The company's standalone net sales stood at ₹89.40 crore, down 5.13% Y-o-Y from the previous period. These latest financial results show the impact of operational challenges on the company's revenue performance, though they align with the brokerage's expectations for the current quarter.
Regarding the upcoming Sabarmati park, there has been some delay in the project timeline, and accordingly, Prabhudas Lilladher now expects an inauguration in 2HFY28E. This timeline adjustment reflects the realities of project execution in the entertainment and hospitality sector. The delay in the Sabarmati project is a key factor in the revised financial projections and target price calculation, as the company's growth strategy now relies more heavily on the consolidation of existing assets rather than new greenfield developments.
