Delta Corp shares crash 12% to hit 52-week low after co gets another tax notice; here's what tech charts indicate

Shares of Delta Corp Ltd slumped 12 per cent to hit their one-year low price of Rs 122.60 in Monday's trade. The gaming and casino firm said its subsidiary Deltatech Gaming has received an intimation of payment of shortfall tax from the Directorate General of GST Intelligence, Kolkata. The amount of the alleged tax shortfall is Rs 6,384 crore. With the latest tax notification, Delta Corp's cumulative tax shortfall obligation has now reached a significant sum of Rs 23,206 crore.

In September last week, the firm had received tax notices worth Rs 16,822 crore from the Directorate General of GST Intelligence. The demand was for the period between July 2017 and March 2022. One notice for Rs 11,140 crore was issued against Delta Corp. The other notice for Rs 5,682 crore was raised against three of its subsidiaries -- Casino Deltin Denzong, Highstreet Cruises and Delta Pleasure Cruises, the company stated.

On technical setup, an analyst said the stock may see Rs 80 level in the near term while another suggested avoiding it at current levels.

"Delta Corp stock price is bearish but also oversold on the daily charts with next support now at Rs 120.3. Till daily resistance of Rs 149 is not broken on a closing basis, investors should avoid buying," said AR Ramachandran from Tips2trades.

"The company has been notified of a substantial tax liability. With the latest tax notification, the cumulative tax shortfall obligation has now reached a significant sum of Rs 23,206 crore. The stock price is witnessing short selling which may push the counter towards the lower levels of Rs 80 in coming weeks," said DRS Finvest founder Ravi Singh.

The stock was last seen trading lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 18.84. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 15.69 against a price-to-book (P/B) value of 1.64.

The scrip has a one-year beta of 1.34, indicating high volatility.

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.

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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