Rakesh Jhunjhunwala Holding DELTACORP Attractive?

Delta Corp Limited

DELTACORP (CMP 98) is one of the Rakesh jhunjhunwala holding as he hiked his holdings in the company to 10% in November 2016. Though after the news the stock price rallied immediately in the last few weeks the stock price has seen a decline to poise it at an attractive level.

Deltacorp news

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 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).

Delta Corp share price analysis (As on 25/12/2016)

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.

Rakesh Jhunjhunwala Holding

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.

2019 update on Deltacorp share and its position in Rakesh Jhunjhunwala holding

We have reanalyzed the price charts of Deltacorp. After we have given the buy call at the price of Rs. 98 on last week of December 2016, the stock has made a non stop rally. It has made an interim high on April 2017 at 218.30. From from 98 to 200+, all our readers has 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 profit to our readers. Every 1 rupee invested in the stock has become rupees 4.

Deltacorp

But after clocking a high or 401.60 Deltacorp has seen significant correction. From the all time high the stock has fallen to 139.10 on August 2019. When I am updating this post on 11th November 2019, yesterday the stock has closed on 198.70.

Is Deltacorp still in Rakesh Jhunjhunwala holding?

Now for those who are still holding the stock it is necessary to know whether the stock is still in Rakesh Jhunjhunwala holding. Let us check the latest portfolio of the big bull for that.

Rakesh Jhunjhunwala Holding
Part of RJ’s latest holding

We checked in the latest holding of RJ. Deltacorp is still there in the portfolio and the big bull is sufferring from -24.12% loss in the stock from 30th June of this year. So those who have not booked any profits and following the Warren Buffet of India can get rays of hope from this fact.

Fundamental analysis of Deltacorp

Now let us cross check the fundamentals of the company. We will consult Market Smith India for the fundamental data.

Delta Corporation (Deltacorp)

The stock has a great earnings per share strength of 91. It has fair price strength and great buyer demand. The only drawback is the industry type falls under the poor category. Overall the company holds better than average fundamentals.

Following Rakesh Jhunjhunwala holding? What to do?

So what to do in Delta Corporation if you are following the big bull? There are 3 possibilities. Let me discuss what is in the cards for Deltacorp now.

  1. If you have entered after our buy call and booked profits, you can re-enter at this levels. In this case you will have your shares while already you have booked good amount of profits out of this stock.
  2. If you have not booked any profits, you can continue to hold this stock. This is still in Rakesh Jhunjhunwala holding and the stock has good fundamentals.
  3. If you have missed our earlier buy order of December 2016 and want to enter now, have caution. You can enter this stock even at this level. But try to buy in small lots. If your capacity to invest is Rs. 1 lakh, buy for Rs. 25000. Add slowly if you get dips. The stock has potential to see higher levels again in the coming days.

Author: Indrajit Mukherjee

Indrajit is a professional blogger and trading system developer. Amibroker expert, Wordpress expert, SEO expert and stock market analyst.Trading since 2002, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.

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