Media Reports Claim Rs.6189 Crs as GST Evasion.
Yearly Revenue of Delta Corp Year Ending March 2019 : Rs.797.81Crs.
GST was Introduced in 2017.
Even if we calculate GST then it Numbers don’t sum Up.
Our View: Reports of GST Evasion are totally Baseless, Once Dust settles Stock can again see UPWARD journey.But in short Run there can be some pain left Need to see how Company reclaims its Glory going forward.
Rationalate: Delta Corp Operates in a Betting Industry which we normally call it a Gamble Industry.
Even Futures and Options market is a Gamble.
When we buy or sell any Futures contract GST is levied on only the Brokerage that is earned by broker i.e Revenue of Broker and not on Whole contract value or Margin Money.
If we were to calculate GST on Contact value then 1 Lot if Reliance at 1250 1 lot of Reliance has 500 Shares.
Contract Value = Rs.625000
Margin money is Approx Rs.65000
Brokerage is approx Rs.100
According to Media Reports GST should be levied on Contract Value ie.18% of 625000=Rs. 112500 to both Seller and Buyer so to sum up it goes to Rs.250000.
Even if GST is levied on Margin Money then 18% of 65000 = Rs.11700 and on both the sides it sums upto Rs.23700. which is not practical and is not levied.
GST is only paid on brokerage i.e Rs 100 +18% = Rs.118. ( brokerage is only for Example )
Simillarly GST should be levied on Revenues earned by company and not on the whole Bet.Lets see How GST counsil & company clears this issue??
We feel it is only Propoganda.
STOCK AVAILABLE AT 52wk Lows 2017 LEVELS IN 2019.
Weekly 200DMA is at 177 where it could find Support
SOME LOOK THIS AS OPPORTUNITY & SOMEONE WANTS TO EXIT.ITS LIKE HALF GLASS EMPTY KIND OF SITUATION AS PER ASSUMPTION.
Disc – All Views expressed are personal and only for Educational & Study purpose only.One should consult its financial advisor before investing or taking any position based on above article or Review.
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