Delta Corp Multibagger – Only Listed Casino Player

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This post has been written by Suraj Khaitan for FinMedium Research Desk.

ABOUT DELTA CORP

Delta Corp Limited is the largest and the only listed company engaged in India’s casino gaming industry. The Company enjoys a 55% market share in the organized casino market.

And this Delta Corp multibagger is a part of Rakesh Jhunjhunwala portfolio.

As the leading player in the country, the Company has established a presence in highly attractive locations in the country i.e. Goa, Sikkim, and Daman, both offshore and onshore, giving the entertainment of both casinos and hospitality.

The company owns 3 offshore casinos out of the 6 offshore casinos licensed in Goa.

It also owns an onshore casino in Goa. It also owns a land-based casino in Sikkim in partnership with HOTEL WELCOME HERITAGE.

The Company has further expanded its casino business to Kathmandu, Nepal. However, the main revenue generators are the offshore casinos in Goa.

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Games played at the casino are:

  • Slot machines
  • Roulette
  • Baccarat
  • Blackjack
  • Caribbean Stud Poker
  • Texas Hold’em Poker
  • Flush

The Company strategically acquired ‘Adda52.com’, the India’s largest online poker destination in 2017 for a total consideration of Rs 225cr.

With this investment, the Company has consolidated its position in India’s gaming industry. Adda52 Poker and Adda52 Rummy saw the major boost during the recent lockdown due to COVID19 pandemic.

In casino gaming, Delta Corp Multibagger has a total installed capacity of 161000 sq feet and 2000+ gaming positions.

In hospitality department Delta has 282 rooms and 1259+ gaming positions.

DELTA CORP MULTIBAGGER PORTFOLIO

DELTA CORP MULTIBAGGER - BUSINESS SEGMENT

GAMING INDUSTRY

The gaming industry in India in undergoing a massive boom. The count of online gamers in India grew 31% in 2019 to reach around 365 million and is expected to reach 440 million by 2022.

India’s game downloads in 2019 increased by 12% over 2018 and contributed 13% of total game downloads worldwide.

According to the FICCI-EY report, the online gaming segment grew 40% in 2019 in India, to reach `65 billion.

This is further expected to grow by a CAGR of 43% over the next 3 years to reach `187 billion by 2022. Online games have been benefited from the increase in the usage of smartphones and the availability of cheaper data packs

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SWOT ANALYSIS OF DELTA CORP MULTIBAGGER

SWOT ANALYSIS OF DELTA CORP MULTIBAGGER

COVID 19 IMPACT ON DELTA CORP

The hospitality and casino department was hit massively due to covid 19 situation but a massive boom in online department kept it going.

Due to lockdown, all the operations were closed except for the online gaming department.

Although Indian economy is slowing owing to COVID-19 pandemic, the online gaming industry is witnessing a boom as never before.

This is since more people have turned to online games to distract their boredom while staying at home during the nationwide lockdowns.

SHAREHOLDING PATTERN OF DELTA CORP LTD

SHAREHOLDING PATTERN OF DELTA CORP Multibagger
Source: Tijori Finance

FINANCIAL ANALYSIS OF DELTA CORP

BALANCE SHEET OF DELTA CORP Multibagger
Source: Delta Corp Limited AR
PROFIT AND LOSS STATEMENT OF DELTA CORP Multibagger
Source: Delta Corp Limited AR
PARTICULARS20162017201820192020
ROCE(%)8.9914.1814.0916.2513.61
ROIC(%)5.7110.349.1610.039.38
ROE(%)4.588.019.2410.139.5
DEBT TO EQUITY RATIO0.290.24
CASH CONVERSION CYCLE54.2737.7919.9419.6224.71
CURRENT RATIO1.691.162.243.053.49
INTEREST COVERAGE RATIO2.473.9223.0825.0716.95

ROAD AHEAD FOR DELTA CORP

Online skill gaming segment of the Company Adda52 Poker and Adda52 Rummy saw the major boost during these lockdown.

Growing Internet penetration, easy data accessibility and the availability of online payment options makes it optimistic about the future growth prospects of this segment.

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Attractive locations, a range of games and appealing hospitality make the casinos a popular and fully-integrated entertainment destinations in India.

The company is located in a highly attractive location but holds the risk of geographical concentration of business.

Information Sources and Credits:

Investocon | India Infoline

Read more research report on Indian companies here.

This post has been written by Suraj Khaitan for FinMedium Research Desk.

Cover Image: Gena Corena and Associates

ALSO WATCH: DELTA CORP MULTIBAGGER ANALYSIS

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