Delta Corp shares: Online gaming stock jumped 11% today. Here's why

Shares of Delta Corp Ltd on Wednesday surged as much as 12.95 per cent to hit an intraday high of Rs 259.95. The stock eventually settled 11.05 per cent higher at Rs 151.75. Today's sharp jump in the share price came after a media report claimed that online gaming companies may get a breather as the Centre is likely to soften its stance on the goods and services tax (GST) demand notices.

The government, in October last year, imposed a 28 per cent tax on funds that online gaming companies collect from their customers for every bet. It had defended the move, citing concerns about addiction. 

In the fiscal year that ends on March 31, the government will collect about Rs 7,500 crore from the tax, Revenue Secretary Sanjay Malhotra told news agency Reuters, up from Rs 1,600 crore the previous year.

The tax generated Rs 3,500 crore in the October-December quarter, he said.

The Centre's overall GST collections have averaged to Rs 1.7 lakh crore per month, Malhotra said, adding, "We are expecting average monthly collection of Rs 1.80 lakh crore to Rs 1.85 lakh crore from next fiscal" year.

On technical setup, Delta Corp's counter traded higher than the 5-day, 10-, 20-, 30-, 50-day and 100-day simple moving averages (SMAs) but lower than the 150-day and 200-day SMAs.

The stock's 14-day relative strength index (RSI) came at 61.13. A level below 30 is defined as oversold while a value above 70 is considered overbought. 

The company's stock has a price-to-earnings (P/E) ratio of 17.78 against a price-to-book (P/B) value of 1.60. On BSE, around 24.40 lakh shares changed hands today, which was way more than the two-week average volume of 3.30 lakh shares.

Turnover on the counter stood at Rs 35.82 crore, commanding a market capitalisation (m-cap) of Rs 4,063.43 crore.

Delta Corp is engaged in the operation of casinos. Its segments include real estate, gaming, hospitality and others. It 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.

(With inputs from Reuters)

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