Delta Corp stock rises over 8% in early trade; here’s why

Shares of Delta Corp rose over 8%  today amid reports that the Calcutta High Court has granted an interim stay to the leading casino and online gaming company against a Rs 6,236.81 crore show cause notice (SCN) issued by the Directorate General of GST Intelligence, Kolkata. Additionally, the firm has announced a foray into the real estate sector through a joint venture with Peninsula Land on November 30.  Delta Corp shares rose 8.06% to Rs 154.15 against the previous close of Rs 142.65 on BSE. Market cap of the firm climbed to Rs 3953 crore in Friday’s session. Total 37.82 lakh shares changed hands amounting to a high turnover of Rs 56.54 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 35% in one year and fallen 31.25% per cent 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 54.6, signaling it's trading neither in the oversold nor in the overbought zone. Delta Corp shares are trading higher than the 5 day, 10 day, 20 day, 50 day but lower than the 100 day, 150 day and 200 day moving averages.         

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.  

Meanwhile, Delta Corp said it would invest Rs 99.99 crore in Peninsula Land, which will issue 1.5 crore equity shares and 77.27 lakh CCDs at Rs 44 to Delta Corp. Delta Corp and Peninsula Land will also start a joint venture of Rs 250 crore where Delta Corp will be the major shareholder. 

“Considering that Delta’s flagship project at Dhargalim, Goa has been deferred and given its free reserves and cash flows, the company sees a compelling opportunity for long-term growth in this sector”, Delta said. 

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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