DELTACORP A Rakesh Jhunjhunwala Latest Stock Pick Looks Attractive
DLTACORP (CMP 98) is one of the Rakesh Jhunjhunwala latest stock pick as he hiked his holdings in the company to 10% in November 2016. Though after the news the stock price rallied immediately but in the last few weeks the stock price has seen decline to poise it at an attractive level.
Delta Corp is the biggest and only stock market enlisted company within the gaming and hospitality Industry having 3 out of 6 gaming licenses in Goa alone. Delta Corp is spirally expanding its gaming positions in the state of Goa and currently offers two thousand gaming positions. The company also has recently started an integrated casino resort in Daman, with all ammenities of the casino from middle of financial year 2015.
Delta Corp also has their share of business in the hospitality industry. The company currently owns two hotels in Goa and also recently started a hotel in Daman. In addition, they also have a substantial stake in Ramada Caravela Beach Resort.
The company has also diversified into real estates. They hold a 39.2% interest in a joint venture with Reliance Industries to develop real estate in Kenya under the name of Delta Corp East Africa Limited (DCEAL).
We have observed the technical charts of DELTACORP. The price corrected sharply in the last eight weeks. The stochastics indicator is in the oversold region and the weekly bollinger band bottom is at 87. Hence we believe the stock can be started to be accumulated slowly at the current levels and add large chunks close to the weekly bollinger band bottom levels. The stock can proved to be a multibagger in the coming days being a Rakesh Jhunjhunwala latest stock pick. We also need to keep in mind that this is one of the companies where Shri Rakesh Jhunjhunwala has more than 10% stake. So we recommend a BUY rating for all the Rakesh Jhunjhunwala fans.
Indrajit is a professional blogger and Trading System developer, Amibroker expert, Wordpress expert, SEO expert and Stock market analyst. Trading since 2000, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.