The shares of this casino gaming company traded in the green on Tuesday and closed at Rs 130. On Monday, the company shares tanked 8.8 percent as two big investment giants sold company shares worth 56 crores through open market transactions.
With the market capitalization of 3,487 crores, Delta corporation limited from past two trading sessions is trailing at Rs 129 and opened flat at Rs 130 in Today’s trading session. The company script witnessed a fall on Monday, indicating a loss of around 8% as compared to its previous close. But in Tuesday’s trading session it has managed to recover 1.5% from the fall.
The fall was observed after the two big investment companies sold Delta corp shares through open market transactions. According to NSE bulk deal data, Bank of America (BoFA) securities sold 30.8 lakh shares at an average price of Rs 127.97 and Societie Generale disposed of 13.8 lakh shares at an average price of Rs 128.48 which sum up to Rs 56 crores. The buyers of these shares are still unknown.
On 22nd September, the company and its subsidiaries had received an intimation from the Directorate General of GST Intelligence, Hyderabad. The DG notice advised the company to pay a tax liability of total 16,822 crores along with penalty and interest.
Again on 14th October 2023, Delta Corp subsidiary “Deltatech Gaming” received an intimation for a payment of shortfall of tax worth Rs 6,384 crores. With this notice, Delta corp total tax shortfall liability stands at Rs 23,206 crores.
Having been received GST notices worth nearly seven times of its market cap, the company is left with few options to overcome this problem. Firstly the company can negotiate with government for one time lump sum payment or it could make these payments in various transit. Secondly it can offer its shares to the government or else it can merge with one of its competitors.
Digging into the Company’s consolidated financial reports, the company hasn’t performed well .The net operating revenue has slightly increased to Rs 100.08 crores in the September 2023 quarter. Coming onto the profitability ratios, return on equity (RoE) was at 12.62 percent during FY 22-23 and return on capital Employed (RoCE) was at 16.68 percent during the same period.
According to the latest shareholding pattern available,the company’s promoter holds a 33.28 percent stake , 42.01 percent is held by the public (Retail Investor) and the remaining 24.71% is held by FII DII.
Delta corp is a publicly listed company which is specialised in gaming and hospitality service and it is the only listed company engaged in the casino gaming industry.The company started as a textiles and real estate consultancy company and has evolved into different segments like casino gaming , Online gaming, Hospitality and real Estate.
Written by Vaibhav Patil
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
