Editor’s Note: This updated analysis revisits Delta Corp, a stock that we analyzed in 2016. We will examine how the company has performed since then and whether Rakesh Jhunjhunwala holding in Delta Corp remains attractive. Unfortunately, the big bull has passed away, but his holdings are still making fortune for his portfolio followers.
Introduction: Where once there was a trickle, there is now a torrent. Delta Corp, the shining star of the gaming industry, has taken the world by storm. Its stock has surged ahead, leaving investors breathless with anticipation. But what lies beneath the surface? Is Delta Corp’s rise sustainable, or is it a mere flash in the pan? In this updated analysis, we will dive deep into the company’s performance and determine whether Rakesh Jhunjhunwala’s stake in Delta Corp is still worth the investment.
About Rakesh Jhunjhunwala’s favorite holding stock Deltacorp
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 amenities of the casino from the middle of the financial year 2015.
Delta Corp also has its 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 estate. They hold a 39.2% interest in a joint venture with Reliance Industries to develop real estate in Kenya under the name Delta Corp East Africa Limited (DCEAL).
Our analysis of 25/12/2016 on Deltacorp – A stock in Rakesh Jhunjhunwala’s holding
We have observed the technical analysis charts of DELTACORP. The price has corrected sharply in the last eight weeks. The stochastics indicator is in the oversold region and the weekly Bollinger Bands 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 prove to be a multibagger in the coming days being a Rakesh Jhunjhunwala holding. 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.
I. The Mighty River Flows: Delta Corp’s Recent Performance
Since our last analysis, Delta Corp has ridden the waves of change with gusto. The company’s revenue has swelled, driven by its gaming and hospitality segments. In 2022, Delta Corp’s net profit after tax stood at Rs. 77 crores, a significant increase compared to Rs. 56 crores in 2016. But behind this success lies a story of grit, determination, and risk-taking.
We have reanalyzed the price charts of Deltacorp. After we have given the buy call at the price of Rs. 98 in the last week of December 2016, the stock made a nonstop rally. It has made an interim high on April 2017 at 218.30. From 98 to 200+, all our readers have made double returns on their investments.
But that was not the end. The stock went up further and made an all-time high at Rs. 401.60 on January 2018. So just within 13 months from our recommendation the stock has given 3 times the profit to our readers. Every 1 rupee invested in the stock has become rupees 4.
But after clocking a high of 401.60 Deltacorp has seen a significant correction. From an all-time high the stock has fallen to 139.10 on August 2019.
When I am updating this post on 21st March 2023, yesterday the stock closed at 195.60.
Fundamental analysis of Deltacorp
Now let us cross check the fundamentals of the company. We will consult Market Smith India for the fundamental data.
The stock has poor earnings per share strength of 58. It has poor price strength and great buyer demand. The other drawback is the industry type falls under the poor category. Overall the company holds lower-than-average fundamentals as of now.
II. Dancing with the River: Rakesh Jhunjhunwala Holding in Delta Corp
Although Rakesh Jhunjhunwala held a stake in Delta Corp from 2012 to March 2022, his current holding in the company is now zero. Despite this, Delta Corp still remains a popular stock among investors.
III. The River’s Hidden Depths: Risks and Challenges
Delta Corp faces several risks and challenges that could impact its future performance. One such risk is the regulatory environment in India, which can be uncertain and unpredictable. Additionally, Delta Corp’s success is closely tied to the health of the hospitality industry, which has been impacted by the pandemic. These factors could impact the company’s revenue and profitability in the short term.
IV. Sailing with the Wind: Delta Corp’s Growth Potential
Despite the risks and challenges, and removal from Rakesh Jhunjhunwala holding, Delta Corp has significant potential for growth in the long term. The company has a dominant market position in the gaming industry, and its foray into the online gaming space has been promising. Delta Corp also has a strong brand and a loyal customer base. As the hospitality industry recovers from the pandemic, Delta Corp’s revenue is expected to rebound.
V. Navigating the Rapids: Investment Outlook
Delta Corp’s future outlook is positive, and the company is expected to continue its growth trajectory in the long term. The company’s strong market position, brand, and customer base make it an attractive investment opportunity. However, investors should be aware of the risks and challenges that the company faces in the short term, including the uncertain regulatory environment and the impact of the pandemic on the hospitality industry. Overall, Delta Corp remains a promising investment for those willing to weather the short-term challenges.
