Shares of this small-cap stock fell 18 percent in Monday’s trading session post a notice from the Directorate General pertaining to the payment of shortfall tax. Year-to-date, the company’s stock has fallen more than 30 percent.
With a market capitalization of Rs 3,878.66 crores, the stocks of Delta Corp Limited started their trading session on Monday at Rs 157.75 and currently trade at Rs 144.80, a sharp fall of around 18 percent as compared to the previous closing levels of Rs 175.25 apiece.
Such steep bearish movements in the company’s stock price were observed after a BSE filing was published mentioning that the company had received an intimation from the Directorate General (DG) of GST Intelligence, Hyderabad.
The intimation is regarding the payment of shortfall tax under Section 74(5) of the CGST Act, 2017 and Goa SGST Act, 2017. The DG has advised the company to pay an alleged tax liability of around Rs 111 Billion along with interest and penalty for the period commencing from July 2017 to March 2022.
During the recent quarters, the company has been successful in increasing its operating revenues as well as net profits with the former moving up from Rs 227.16 crores during Q4FY22-23 to Rs 272.8 crores during Q1FY23-24, and, the latter taking a shift from Rs 51.28 crores to Rs 67.77 crores during the same time period.
In addition, the company has also shown decent improvements in its profitability metrics with the return on equity (RoE) increasing from 3.49 percent during FY21-22 to 12.62 percent during FY22-23, and, the return on capital employed (RoCE) taking a shift from 5.71 percent to 16.68 percent keeping the timeframe the same.
According to the shareholding pattern data available for the June 2023 quarter, the company’s Promoters hold a 33.28 percent stake, and the Foreign Institutional Investors (FIIs) hold a 6.68 percent stake in the company.
Delta Corp Limited is associated with the gaming and casino industry in India. The company operates in various segments including Online Skill Gaming, Hospitality, etc. It generates most of its revenue from the Gaming segment, and, geographically, from Indian operations.
Written by Amit Madnani
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