LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Business News » India News

316% profit growth in a year! This Rakesh Jhunjhunwala-favoured casino play soars; should you buy?

Rakesh Jhunjhunwala portfolio stock: This stock gained as much as 5.68 per cent to Rs 301.35 on the BSE in Tuesday's trade. The stock is down 25 per cent from its January 2018 peak of Rs 401.30 as earlier this year the Goa government hiked license fees on casino players. 

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
316% profit growth in a year! This Rakesh Jhunjhunwala-favoured casino play soars; should you buy?
Rakesh Jhunjhunwala along with his wife Rekha Jhunjhunwala, owns 7.5 per cent stake in the company. Image source: Reuters
Written By: Aprajita Sharma
Updated: Tue, Apr 24, 2018
03:21 pm
ZeeBiz WebDesk
RELATED NEWS
After Rakesh Jhunjhunwala sells 12 lakh Escorts shares, price falls! What must investors do? Expert reveals After Rakesh Jhunjhunwala sells 12 lakh Escorts shares, price falls! What must investors do? Expert reveals
Rakesh Jhunjhunwala Portfolio: Big Bull books profit in this share after around 50 pct rise in Oct-Dec quarter Rakesh Jhunjhunwala Portfolio: Big Bull books profit in this share after around 50 pct rise in Oct-Dec quarter
Rakesh Jhunjhunwala Stocks Portfolio - Titan, Tata Motors, Tata Communications, Lupin to Escorts I Details of Big Bull's holdings revealed Rakesh Jhunjhunwala Stocks Portfolio - Titan, Tata Motors, Tata Communications, Lupin to Escorts I Details of Big Bull's holdings revealed
Titan share price: Management reiterates confidence among investors - All you need to know Titan share price: Management reiterates confidence among investors - All you need to know
Rakesh Jhunjhunwala does a first, this share jumps 30% in 48 hrs! Why did Big Bull do this? Rakesh Jhunjhunwala does a first, this share jumps 30% in 48 hrs! Why did Big Bull do this?

One of Rakesh Jhunjhunwala's favourite stocks has just reported a staggering 316 per cent year-on-year growth for the March quarter of financial year 2017-18, reacting to which the stock of this casino play rallied nearly 6 per cent on the BSE. The stock is none other than Delta Corp, which has been a multibagger stock, multiplying investor wealth by three times  in last five years. 

Delta Corp share price gained as much as 5.68 per cent to Rs 301.35 on the BSE. The stock is down 25 per cent from its January 2018 peak of Rs 401.30 as earlier this year the Goa government hiked license fees on casino players. As expected by most analysts,  license fees hike didn't impact Delta Corp whose Profit After Tax (PAT) for Q4FY18 jumped 316 per cent yoy to Rs 45.6 crore as against Rs 10.9 crore. The company's revenue for Q4FY18 grew by nearly 94 per cent yoy to Rs 218.9 crore as against Rs 113 crore in Q4FY17. EBITDA margin for the said quarter improved 37 bps yoy to 30.8 per cent against 30.5 per cent in Q4FY17.

"We continue to like Delta as a gaming play in India. At 30.2 times FY20E Price to Earnings Ratio (PER) currently, valuations are undemanding for a growth stock with expected 2-year earnings CAGR of 28 per cent. We use PER methodology as there is very strong earnings visibility from DELTA’s casinos," said brokerage Emkay Global Financial Services.

Delta Corp Q4FY18 cosolidated results (Rs in crore)

  Q4FY18 YoY (%)
Revenue  219 93.8
EBITDA 67.49 96.1
EBITDA Margin (%) 30.8 37
Net Profit (adjusted) 45.67 316

Among positive catalysts for the stock, the expected announcement of new gaming policy by Goa government by the second quarter will benefit Delta Corp. "Indian Gaming industry would expand multifold. The current PER of 30x FY20E does not factor in the benefits from new policy and/or Daman license. We maintain our BUY call with target price of Rs 294 based on 30x PER," said Emkay.

Delta Corp operates three floating casinos (Deltin Royale, Deltin Jaqk and Deltin Caravela) and one onshore casino (Deltin Casino – part of Deltin Suites) in Goa. Deltin Royale and Deltin Jaqk are Delta’s major casinos with vessel passenger capacity of 200-400. Deltin Caravela and Deltin Casino are relatively small with passenger capacity of 200 or less.

As of March 31, 2018, Rakesh Jhunjhunwala along with his wife Rekha Jhunjhunwala, owned 7.5 per cent stake in the company. Promoters have 33.2 per cent stake in the company, while foreign institutional investors and domestic instititional investors held 22.7 per cent and 6.8 per cent stake in Delta Corp, respectively.  

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Rakesh Jhunjhunwala
RELATED NEWS
After Rakesh Jhunjhunwala sells 12 lakh Escorts shares, price falls! What must investors do? Expert reveals After Rakesh Jhunjhunwala sells 12 lakh Escorts shares, price falls! What must investors do? Expert reveals
Rakesh Jhunjhunwala Portfolio: Big Bull books profit in this share after around 50 pct rise in Oct-Dec quarter Rakesh Jhunjhunwala Portfolio: Big Bull books profit in this share after around 50 pct rise in Oct-Dec quarter
Rakesh Jhunjhunwala Stocks Portfolio - Titan, Tata Motors, Tata Communications, Lupin to Escorts I Details of Big Bull's holdings revealed Rakesh Jhunjhunwala Stocks Portfolio - Titan, Tata Motors, Tata Communications, Lupin to Escorts I Details of Big Bull's holdings revealed
Titan share price: Management reiterates confidence among investors - All you need to know Titan share price: Management reiterates confidence among investors - All you need to know
Rakesh Jhunjhunwala does a first, this share jumps 30% in 48 hrs! Why did Big Bull do this? Rakesh Jhunjhunwala does a first, this share jumps 30% in 48 hrs! Why did Big Bull do this?

LATEST NEWS

Stock Market Outlook: Anil Singhvi reveals Nifty, Bank Nifty crucial support range for next week

Krunal, Hardik Pandya's father passes away, Baroda skipper leaves Syed Mushtaq bubble

IRB InvIT Q3 revenue almost flat at Rs 333 cr

Getting Driving licence made easy! Here is how you can apply for licence in Delhi, UP, MP, Bihar and other states

Bharat Biotech to pay compensation if Covaxin causes side effects

Earthquake today: 42 dead, 15,000 displaced in massive Indonesia quake

Mi 10i sets new benchmark in mid-price phone segment

Consumers spent $57 bn on video games in US in 2020, 27 per cent increase from 2019

Loan moratorium case! Petitions in SC seeking direction for contempt of court proceedings against RBI Governor, others

RBI open to examine proposal on bad banks: Reserve Bank of India Governor Shaktikanta Das

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved