Ace investor Rakesh Jhunjhunwala's portfolio component Delta Corp has delivered over 100% returns in one year. Jhunjhunwala held 1.15 crore shares or 4.28% stake in the firm at the end of June quarter this year. His wife Rekha Jhunjhunwala held 85 lakh shares or 3.16% stake in the firm during last quarter.
The share of hospitality and gaming firm stood at Rs 105 on September 9, 2020. It has zoomed to Rs 224 today, translating into gains of 113% during the period. In comparsion, Sensex clocked 52.49% returns in one year.
Currently, Delta Corp share trades at Rs 219.65, 1.30% lower against previous close of Rs 222.55 on BSE.
The share touched intra day high of Rs 224 today.
The mid cap share has gained 37.02% since the beginning of this year and climbed 23.73% in a month. Market cap of the firm stood at Rs 5,868 crore.
Delta Corp share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
Total 2.17 lakh shares of the Delta Corp changed hands amounting to turnover of Rs 4.78 crore on BSE.
The share hit 52-week high of Rs 231.20 on September 7, 2021 and 52-week low of Rs 99.90 on September 22, 2020.
For the quarter ended June 2021, FIIs held 7.78% stake in the firm. Mutual funds owned 6.73% stake and promoters' stake stood at 33.28%.
In June quarter, the firm reported a marginal rise in net loss at Rs 28.93 crore against Rs 28.24 crore loss in corresponding quarter of last fiscal.
However, sales rose 56.95% to Rs 75.87 crore in Q1 against Rs 48.34 crore in comparable period for last year. Net profit rose to Rs 57.07 crore in March quarter of previous fiscal from Rs 1.04 crore in December quarter but the coronavirus lockdown imposed across the country this year led to huge disruption in the operations and resulted in losses for the firm last quarter.
Experts are bullish on prospects of the stock.
Rahul Sharma, Co-Founder, Equity99 said, "Delta Corp is the only listed company in casino gaming with 2000 plus live gaming positions. They have managed to capture 55% of the market share in the organised casino market.
The company is almost debt free and has been consistently generating positive operating cash flows.
The company recently notified that its subsidiary will resume operations in Kathmandu as the Government of Nepal has issued relaxations.
We expect this counter to reach the target price of 260 with a stop loss of Rs 200."
Santosh Meena, Head of Research, Swastika Investmart said, "Delta Corp share is gaining momentum in the last few days on the back of several triggers like reopening theme, inclusion in F&O, and pick up in online business. It may see growth momentum to pick up from here after a tough period of Covid-19. We believe it is likely to be the biggest beneficiary of the reopening theme and revenge tourism. Though the view is bullish, it may remain volatile as this business has some regulatory challenges.
Technically, the counter is entering into the bullish territory after witnessing a breakout of a bullish inverse head and shoulder formation that may lead this counter towards Rs 400 level in the medium to long term while Rs 280 will be an immediate target. On the downside, the Rs 200-180 zone will act as a strong demand zone at any correction."
Nagaraj Shetti, Technical Research Analyst at HDFC Securities said, "After a broader range movement over the last 15-16 weeks, Delta Corp share has displayed a sharp upside momentum since last week. This pattern signals a decisive upside breakout of the larger range-bound action at Rs 205 level. We observe consistent formation of higher bottoms over the last many months, which signals strength of an uptrend and limited downward correction in the stock trend. One may look to buy the stock at current market price of Rs 221.50, add more on dips down to Rs 213 and wait for the upside target of Rs 245 in the next 3-4 weeks. Place a stop loss of Rs 206."
Founded by Jaydev Mody, Delta Corp started off as a real estate firm and gradually entered the hospitality and gaming segment in 2008.
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