Delta Corp shares in a free fall; is it a good time to buy?
Shares of Delta Corp fell 27.79% to Rs 178.20 in the afternoon session today against the previous close of Rs 246.80 on BSE. Earlier, the stock opened lower at Rs 222.15 on BSE.
- Jul 12, 2023,
- Updated Jul 13, 2023 12:46 PM IST
Shares of Delta Corp Ltd crashed 28% intraday today after the GST Council imposed a levy of 28 per cent GST on online gaming, horse racing, and casinos. Currently, online gaming platforms pay 18 percent GST on the platform fees. Shares of Delta Corp fell 27.79% to Rs 178.20 in the afternoon session today against the previous close of Rs 246.80 on BSE. Earlier, the stock opened lower at Rs 222.15 on BSE. Market cap of Delta Corp declined to Rs 5177 crore in the current session. At 12:01 pm, the stock was down 21.66% at Rs 193.35 on BSE.
Total 17.23 lakh shares of the firm changed hands amounting to a turnover of Rs 32.75 crore. However, the stock is still up 7.30 per cent in one year but lost 10.55 per cent since the beginning of this year.
In terms of technicals, the relative strength index (RSI) of Delta Corp stands at 53.1, signaling it's trading neither in oversold nor in the overbought zone. Delta Corp stock has a one-year beta of 1, indicating average volatility during the period.
Here’s a look at what analysts said on the outlook of the stock amid the carnage today.
Vaibhav Kaushik, Research Analyst, GCL Broking said, "As we know already 30% TDS is applicable on gambling as well 28% GST directly impacts the users to play such games as after taking high risk, users have to pay more than 50% as taxes to government. So, from our point of view, at least next two quarter results must be tracked. The stock can range between Rs 150 to Rs 210. So avoid is the recommendation."
ALSO READ: Delta Corp investors lose Rs 1,321 crore as gaming and casino stock slips another 10%
Abhijeet from Tips2trades said, "Expectedly after proposing 28% GST on online gaming & casinos, Delta Corp stock price has crashed with a strong support at Rs 173. Till daily resistance of Rs 222 is not broken on a closing basis, investors should avoid buying."
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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Shares of Delta Corp Ltd crashed 28% intraday today after the GST Council imposed a levy of 28 per cent GST on online gaming, horse racing, and casinos. Currently, online gaming platforms pay 18 percent GST on the platform fees. Shares of Delta Corp fell 27.79% to Rs 178.20 in the afternoon session today against the previous close of Rs 246.80 on BSE. Earlier, the stock opened lower at Rs 222.15 on BSE. Market cap of Delta Corp declined to Rs 5177 crore in the current session. At 12:01 pm, the stock was down 21.66% at Rs 193.35 on BSE.
Total 17.23 lakh shares of the firm changed hands amounting to a turnover of Rs 32.75 crore. However, the stock is still up 7.30 per cent in one year but lost 10.55 per cent since the beginning of this year.
In terms of technicals, the relative strength index (RSI) of Delta Corp stands at 53.1, signaling it's trading neither in oversold nor in the overbought zone. Delta Corp stock has a one-year beta of 1, indicating average volatility during the period.
Here’s a look at what analysts said on the outlook of the stock amid the carnage today.
Vaibhav Kaushik, Research Analyst, GCL Broking said, "As we know already 30% TDS is applicable on gambling as well 28% GST directly impacts the users to play such games as after taking high risk, users have to pay more than 50% as taxes to government. So, from our point of view, at least next two quarter results must be tracked. The stock can range between Rs 150 to Rs 210. So avoid is the recommendation."
ALSO READ: Delta Corp investors lose Rs 1,321 crore as gaming and casino stock slips another 10%
Abhijeet from Tips2trades said, "Expectedly after proposing 28% GST on online gaming & casinos, Delta Corp stock price has crashed with a strong support at Rs 173. Till daily resistance of Rs 222 is not broken on a closing basis, investors should avoid buying."
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.
ALSO READ: Delta Corp shares tumble 20% as online gaming to attract 28% GST
ALSO READ: Suzlon Energy shares reclaim 52-week high after five sessions; here’s what analysts say
ALSO READ: Adani Enterprises shares in focus as firm raises Rs 1,250 crore