👉The Goa Government Revised Fee Structure On Offshore and Onshore casino on Wednesday, As Government aims to increase its Revenue.
👉Currently there are four casino operated by Delta Corp in Goa are Deltin Royale,Deltin Jaqk,Deltin Caravela and Deltin Suites( only Land Casino inside there Hotel & Resort) rest all are located on shore in River Mandovi in Panjim.
👉There would be Impact on Margins in for next few Qtrs.It would take time for Company to pass on License fee to the user via Increase in Entry fee or some other option.
👉During Demonatisation also margins were not that much effected and Company has given Good Growth in last 3 yrs in terms of EDIDTA, ROCE,ROE. Company has been generating operating cash flow of almost 230 cr in fy18 .
👉Stocks is Trading at 42 Times fy18 and 33 Times Fy19 Earnings.On Price to Book Value Stock is Trading at 4.2 Times fy18 & 3.8 Times Fy19.
👉We@ Wealthcreatures feel Stock can be under pressure Till time we get clarity from management. But as it’s the only listed player in Organised gaming space the outlook for long term is positive.
👉It had also acquired adda52.com in 2017 for 155cr ,which can give additional edge going forward to the company for online expansion.
👉Delta Corp has 524 cr Of Liquid cash & Investment On it’s Books. It also owns 5 Start property THE DELTIN in Daman where Company is soon expected to get Casino Approvals.which can boost Numbers going forward.
👉We expect Delta Corp to deliver EPS of 9.5 to 10.5 for fy20 and as it can get premium valuation going forward. Stock can easily reach 360+ in next 12 to 24 months.
👉Stock can be Accmulated On All Dips between 210 – 230 for long term Investment.