🔍 As India’s leading listed casino operator faces regulatory and financial headwinds, is there still room for growth?
📌 Company Snapshot
- Name: Delta Corp Limited
- Sector: Casino Gaming & Hospitality
- Incorporated: 1990
- HQ: Mumbai, Maharashtra
- Core Businesses:
- Offshore & land-based casinos
- Hotel and cruise hospitality
- Online real-money gaming (Adda52 platform)
📊 FY25 Financial Summary
| 📌 Metric | 💼 Value |
|---|---|
| 📈 Revenue | ₹857 Cr (approx.) |
| 🧾 Net Profit | ₹110 Cr (approx.) |
| 💹 EBITDA Margin | ~28% |
| 📉 Sales Growth | -8% YoY |
| 🔻 Net Profit Growth | -18% YoY |
| 🏦 Return on Equity | 11.4% |
| 💼 ROCE | 14.1% |
| 💳 Debt to Equity | 0.04 (virtually debt-free) |
📉 Market Valuation & Performance
- Current Price: ₹125 (as of Apr 23, 2025)
- Market Capitalization: ₹3,340 Cr
- P/E Ratio: ~14.2x
- Price Correction: Stock has dipped ~40% from its recent high
📋 Q4 FY25 Result Insights
✅ Financials show consistency with accounting standards and investor expectations
✅ The company’s operational profit remained positive
⚠️ Big Red Flag: Delta Corp and its group companies are facing tax notices totaling ₹23,207 Cr related to past GST dues (2017–2022)
🎯 The management believes the legal case will conclude in their favor, hence no provisions were made in the financials.
📦 Shareholding Breakdown
| Holder | % Stake |
|---|---|
| Promoters | 33.3% |
| FIIs | 14.1% |
| DIIs | 9.8% |
| Public | 42.8% |
- 👍 Promoter holding has been stable
- 👎 Institutional investors have trimmed stakes amid regulatory uncertainties
🚀 Investment Positives
✅ First-Mover Advantage: India’s only casino-focused listed stock 🃏
✅ Strong Balance Sheet: Virtually no debt burden 💳
✅ Growing Sectors: Online gaming and leisure tourism are on the rise 🌐
✅ Discounted Valuation: Compared to historical P/E averages, it appears undervalued 📉
⚠️ Risk Factors
❌ Tax Demand Risk: ₹23,207 Cr in disputed GST liability 😟
❌ Regulatory Pressure: 28% GST on skill-based gaming could shrink profit margins
❌ Weak Q4 Numbers: Declines in both top-line and bottom-line figures
❌ Sectoral Scrutiny: Gambling and gaming may face unfavorable policy actions in some states
📈 Final Take – Worth a Bet or Too Volatile?
Delta Corp presents a unique yet high-stakes opportunity. While its fundamentals remain sound and the valuation looks appealing, the unresolved tax case clouds near-term outlook.
🎯 Good Fit For: Aggressive investors with a contrarian mindset
🚫 Avoid If: You prefer regulatory-stable, low-volatility investments
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💬 What’s your view on Delta Corp? Planning to invest? Share in the comments!
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