Delta Corp shares in focus as arm gets interim relief on Rs 6,384-crore GST notice demand

Shares of Delta Corp Ltd are in focus today after the Calcutta High Court granted an interim relief to Deltatech Gaming, a unit of Delta Corp Ltd in a case related to the Rs 6,384 crore payment of the shortfall in goods and services tax (GST).

Delta Corp shares ended 0.47% lower at Rs 138.95 on Wednesday against the previous close of Rs 139.60 on BSE. Market cap of the firm fell to Rs 3720.68 crore in Wednesday’s session. Total 2.78 lakh shares changed hands amounting to a turnover of Rs 3.88 crore on BSE.

The stock of the gaming and casino firm hit its yearly low of Rs 124.60 on October 16 and a 52 week high of Rs 259.95 on June 28, 2023.

However, the stock has lost 41% in one year and fallen 36.48% since the beginning of this year. Delta Corp stock has a one-year beta of 0.2, indicating very low volatility during the period.

In terms of technicals, the relative strength index (RSI) of Delta Corp stands at 49.3, signaling it's trading neither in the oversold nor in the overbought zone. Delta Corp shares are trading higher than the 10 day, 50 day but lower than the 20 day, 100 day, 150 day and 200 day moving averages.

The court said that no effect be given to any order passed by the tax authority in relation to the show-cause notice, the company said on Wednesday.

The stock hit a 52-week low on October 16 after the gaming and casino firm said its subsidiary Deltatech Gaming has been notified of a substantial tax liability amounting to Rs 6,384 crore on October 14. With that tax notification, Delta Corp's and its subsidiaries had received notices for payment of tax shortfall to the tune of Rs 23,206 crore for the period between July 2017 and March 2022.

On October 24, the Goa Bench of Bombay HC restrained tax authorities from passing any final order on the Rs 16,195-crore GST notice issued to the casino firm.

Delta Corp is engaged in the operation of casinos. Its segments include real estate, gaming, hospitality and others. The company operates its gaming and hospitality businesses under the DELTIN brand. The company owns three casinos in Goa, including Deltin Royale, Deltin JAQK and Deltin Caravela.

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