Shares of entertainment services companies such as Imagicaaworld Entertainment and Wonderla Holidays were in demand, rising 11% in intraday trade on the BSE on Monday amid heavy trading volume and strong earnings expectations.

Imagicaaworld, which operates the Imagicaa theme park, water park, snow park and family hotel Novotel Imagicaa Khopoli, was up 11% in intraday trade on the BSE to hit a 52-week high of Rs 54.90. Over-the-counter trading on the NSE and BSE more than doubled, with 10.9 million shares changing hands as of 11:29 am.

The stock has soared 44% in the past three days after the company announced the launch of its water park Aquamagicaa in Surat, Gujarat.

Aquamagicaa – Surat is open to tourists from March 1, 2023. The 4-acre park in central Surat includes 16 water rides/attractions imported from international manufacturers. The company said it intends to extend the high-quality service experience enjoyed by more than 11 million guests at its flagship project in Khopoli.

The company reported a profit before tax (PBT) of Rs 7.05 crore for the first time in Q3FY23. Total revenue rose 37% to Rs 75.1 crore from Rs 54.9 crore in Q3FY20.

The company said the business continued to show an excellent rebound after two years of headwinds from Covid-19 and an overall improvement in its operations’ health.

Meanwhile, shares of Wonderla Holidays rose 3% to hit a new high of Rs 464.35 on the BSE. Shares of the country’s largest amusement park chain have risen 13% over the past week, compared with a 1.8% gain in the S&P BSE Sensex.

In Q3FY23, the company reported a strong 85% year-on-year growth in its profit after tax to Rs 389 crore on the back of healthy operating performance.

Wonderla Holidays reported double-digit revenue growth across all divisions, driven by solid foot traffic. In Q3FY23, traffic for the quarter was 920,000, compared to 720,000 in Q3FY20.

Operating income rose 71% QoQ and 134% YoY to Rs 113.2 crore. EBITDA was Rs 56.45 crore, up 190% QoQ and 295% YoY, with an EBITDA margin of 33.07% (2,045 bps QoQ and 2,035 bps YoY).

Management said the significant increase in tourist arrivals was due to domestic tourism, an increase in casual customers and a resurgence in student excursions.