Delta Corp share has nearly tripled investor wealth in over eight months. The stock, which is part of ace investor Rakesh Jhunjhunwala's portfolio fell to its 52-week low of Rs 54 on March 25 this year. The hospitality sector stock has gained 188% since then. The stock hit a high of Rs 156 on BSE today. Jhunjhunwala and his wife Rekha held 2 crore shares or 7.49% stake in Delta Corp at the end of September quarter.
Delta Corp share closed 1.67% or Rs 2.55 lower at Rs 150.55 on BSE today. The stock touched an intraday low of Rs 146.75 and intra day high of Rs 156 in today's session. The stock has fallen after 3 days of consecutive gain.
Delta Corp share stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. Market cap of the firm stood at Rs 4,013 crore.
The stock has risen in line with benchmark indices and due to gradual easing of the coronavirus lockdown.
On October 28, the stock rose 11% intraday amid reports that the Goa government has allowed casinos to reopen from November 1. The stock opened with a gain of 2.54% at Rs 111 against previous close of Rs 108.25 on BSE.
Casinos in the state were shut since March-end when the Covid-19 pandemic broke out in the country and coronavirus lockdown was imposed.
On November 2, Delta Corp share price rose over 3% percent intraday after the said it would open casinos in Goa with immediate effect. The stock touched an intraday high of Rs 114.3, rising 3.3% on BSE.
The rise in stock does not reflect the financial performance of the firm in last eight months. The firm reported a 94% rise in net loss in Q2 at Rs 54.91 crore against Rs 28 crore loss in June quarter of current fiscal.
Net sales fell 20.62% to Rs 38.37 crore in Q2 against Rs 48.34 crore sales in Q1 of current fiscal.
On a year-on-year basis too, the firm reported a 193% fall in net profit from Rs 59.04 crore in Q2 of last fiscal. Sales too fell 81% from Rs 200.84 crore in second quarter of previous fiscal.
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.
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today