DELTA CORP LTD - READY TO GAMBLE? :)Hello, Everyone I hope you all will be doing well in your life and your investing AND YOUR GAMBLING :) as well. Here I have brought a stock that looks at bottom and ready to change trend. Delta Corp Ltd is the name of the stock. CMP is 128. Strong support at 110. It made low of 104.45 in June 24. If it breaks 110 by chance than it may touch 80 to 85. That looks slightly doubtful but anything can happen in Stock Market. Its difficult to predict. I know it’s tough but still I’m trying 😊. Upside target as per Fibbo 180, 225, 260, 290, 340, 400.
Just an assumption. Please do you research. Not a suggestion of buying. As I told This is Stock Market.
Source: Screener.in
Delta Corp Ltd
About
Delta Corp is currently operates in the Gaming, Hospitality and online skill gaming segment.(Source : 202003-01 Annual Report Page No:113)
Key Points
Business Mix
1) Casino Gaming (80% in Q1 FY25 vs 71% in FY22): The company has a major market share in Goa, with a net capacity of 2,000 gaming positions. It owns 3 of the 6 offshore gaming licenses issued in Goa, 2 land-based casinos in Goa, and one in Sikkim, including Deltin Royale and Deltin JAQK, among the country’s 2 largest offshore casinos. The segment gross revenue grew by 50% between FY22 and FY24. The YoY growth in FY24 was flattish due to the divestment of a casino in Nepal, and dry docking of a casino vessel for nearly 5 weeks.
2) Online Gaming (15% in Q1 FY25 vs 21% in FY22): The company owns and operates the online poker site Adda52.com. The segment gross revenue declined by 9% YoY between FY22 and FY24, due to a substantial increase in GST, since October 2023.
3) Hospitality (5% in Q1 FY25 vs 8% in FY22): The company owns and operates 2 hotels including Deltin Suites, a 106-room, all-suite hotel with a casino in Goa, and The Deltin, a 176-room, a five-star integrated resort spread over more than 10 acres at Daman. This segment's revenue declined by 17% between FY22 and FY24.
GST Demand: The GST authorities issued a notice to Delta Corporation and its subsidiaries demanding tax on the entire "betting value" rather than on the net gaming revenue (i.e., the commission or fee that the casino earns). The tax authorities argue that the total face value of bets placed by players should be taxed at 28%.
Tax Base Dispute: Delta Corporation contends that only the gross gaming revenue (GGR) or the rake (i.e., the commission earned by the company) should be subject to GST, not the entire value of bets placed. The difference between taxing the total betting value and the rake is substantial and has led to 23,200 Crs of Contingent Liability.
Entry into Real Estate
The company has formed a strategic partnership with Alpha Alternatives Fund Advisors LLP and Peninsula Land for real estate development. This Real Estate Fund will invest Rs. 765 Cr in residential redevelopment projects, land parceling in the MMR region, and plotted developments around Mumbai, Alibaug, Khopoli, Karjat, and Pune. The company’s contribution to the real estate platform is up to Rs. 90 Cr.
Expansion
The company has planned a capex of Rs. 350 Cr, in the casino business, it is replacing its “Kings Casino” with a new vessel, which will double its gaming positions to 4,000, it is projected to start commercial operations in Q4 FY25.
It is also constructing a 450-room hotel in Goa, with a capex of Rs. 450 Cr, and is likely to start operations by Q4 FY26.
Integrated Resort Project
The company plans to build an integrated resort on 100 acres in Dhargalim, Goa, near the new Mopa airport. The resort will include a 5-star hotel, electronic casino, theme park, mall, gaming zones, and recreational areas. Although all approvals are in place, the project is on hold due to GST issues. By January 2024, the company had invested around Rs. 170-180 Cr in the project.
Divestment
The company has divested its stake in Deltin Casino International in Nepal by the sale of a 100% stake in Caravella Entertainment Pvt Ltd, for an enterprise value of Rs. 80 Cr.
IPO of Subsidiary
Delta Tech Gaming Limited, a WOS of the company, had filed a draft red herring prospectus in June 2022. This IPO has been put on hold due to ambiguity.
Delta corp Demerger: How many shares will investors receive?
The company revised its demerger scheme, transferring the Dhargal project to Deltin Hotel & Resorts and other hospitality and real estate businesses to Delta Penland, maintaining a 1:1 share entitlement ratio.
A significant corporate restructuring is set to reshape the landscape of a hospitality and real estate enterprise in the gaming industry. The strategic demerger promises to unlock value for investors by strategically separating core business segments into distinct entities.
Investors are poised to witness a transformative corporate move that will redistribute assets and create focused operational streams.
Share Price Movement
The share price of Delta Corp Limited went up by 2.2 percent to Rs. 125.42 per share on Monday, an increase from its previous close of Rs. 122.65 per share. The market capitalisation now stands at approximately Rs. 3,314 crore as of December 09, 2024.
What happened
The revision of the Composite Scheme of Arrangement involves the demerger of Delta Corp Limited’s Hospitality and Real Estate Business into Delta Penland Private Limited (DPPL). This includes the Dhargal Project in Goa. The project will require significant capital investment and will be managed as a separate legal entity. The share entitlement ratio remains 1:1, with DPPL issuing one new equity share for each existing Delta Corp. share held. The revised scheme is subject to regulatory approvals.
Q2 Financial Highlights
According to its recent filing, in the quarter ending September 2024, Delta Corp’s consolidated revenue from operations has declined by 27.9 percent YOY from Rs. 261 crore in Q2 FY24 to Rs. 188 crore in Q2 FY25 and increased by 3.86 percent QoQ from Rs. 181 crore in Q4 FY24.
The company’s consolidated net profit has declined by 60.8 percent, from Rs. 69 crore in Q2 FY24 to Rs. 27 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has increased by 22.7 percent QoQ from Rs. 22 crore.
Market Outlook
The casino industry in India, particularly in Goa and Sikkim, is expanding, boosting local economies and tourism. Goa, known for its vibrant casino culture, and Sikkim, with its growing gaming facilities, contribute significantly to state revenues through taxes and tourism spending. Despite challenges like social responsibility.
The industry is set for growth due to rising income levels, technological advancements, and changing regulations. Online gaming, a key growth driver, has also seen a substantial rise, with millions of new users and increased revenue from casual and transaction-based games.
Shareholding Pattern
As of the December 2024 shareholding pattern, Delta Corp Limited is primarily held by the promoters at 33.26 percent, foreign institutional investors hold 1.25 percent, and the public with 56.87 percent.
About Company
Delta Corp Limited is a key player in the Indian gaming industry, spanning casino, online gaming, and hospitality sectors. Founded in 1990 as a textiles and real estate consultancy, Delta Corp. has diversified its business portfolio significantly. Headquartered in Mumbai, it is the only publicly listed company in India that specialises in live electronic and online casino gaming, solidifying its leadership in the organised gaming sector.
Delta Corp. operates through three main divisions. In casino gaming, it manages several major offshore casinos like Deltin Royale and Deltin JAQK, along with land-based options such as Deltin Suites in Goa. In online skill gaming, Delta Corp oversees popular platforms including Adda52.com, Adda52Rummy.com, and Adda.games. In the hospitality space, it owns luxury hotels such as The Deltin in Daman and Deltin Suites in Goa. Delta Corp remains committed to innovation and customer experience, aiming to sustain its leadership in the Indian gaming industry.
This is just to boost my confidence. No Suggestions for buying.
Disclosure: I am not SEBI registered. The information provided here is for educational purposes only. I will not be responsible for any of your profit/loss with these suggestions. Consult your financial advisor before making any decisions.
