{"id":53971,"date":"2025-03-25T12:09:12","date_gmt":"2025-03-25T06:39:12","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=53971"},"modified":"2025-03-25T14:55:27","modified_gmt":"2025-03-25T09:25:27","slug":"delta-corp-share-price-analysis-all-you-need-to-know","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/delta-corp-share-price-analysis-all-you-need-to-know\/","title":{"rendered":"Delta Corp Share Price Analysis: All You Need to Know"},"content":{"rendered":"
<\/div>\n

India’s gaming and entertainment industry is booming, with live concerts and fine dining. Many startups, including Eternal (Zomato), have invested to capitalize on this Indian\u2019s newfound interest.\u00a0 One company that has established its dominance in the gaming and entertainment industry is Delta Corp. The company is a dominant casino gaming player in India and owns the biggest online poker platform, Adda52.\u00a0<\/p>\n\n\n\n

However, due to business challenges in the last few years, Delta Corp share price has declined from \u20b9285 on March 17, 2022, to \u20b987 on March 11, 2025, over the past three years. In its recent presentation, the management has reported an improvement in business performance. This article will analyze Delta Corp’s share price to understand its future growth potential.\u00a0<\/p>\n\n\n\n

Let\u2019s dive in\u00a0<\/h5>\n\n\n\n

Delta Corp Business Overview<\/h2>\n\n\n\n

Delta Corp is a leading casino gaming company in India, with over 2,000 live gaming positions, both offshore and onshore. The company has a strong presence in the states of Goa and Sikkim in the casino gaming segment and online skill gaming through the Adda52 poker platform.\u00a0<\/p>\n\n\n\n

The offshore casino gaming is offered primarily through two vessels- Deltin Royale, Deltin JAQK, and Kings Casino. The onshore casino is offered at Deltin Suites in Goa.<\/p>\n\n\n\n

The online gaming segment is divided into three sub-segments- \u00a0real-money games (RMG), mobile-centric\/casual games, and e-sports.<\/p>\n\n\n\n

The RMG segment includes real-poker, daily fantasy sports, and quizzing. Delta Corp is also into the hospitality segment, complementing the gaming business. The Deltin Daman is the largest hospitality project of the group, while Deltin Suites in Goa is equipped with a land-based casino.<\/p>\n\n\n\n

Delta Corp Management Team<\/h2>\n\n\n\n

Mr. Jaydev Mody<\/strong> is the Chairman of Delta Corp and has over 40 years of experience in business growth and management. Mr. Mody, a Humanities graduate from Mumbai University, has played a key role in developing various significant and landmark real estate projects in and around Mumbai, including India’s first global<\/a> mall, ‘Crossroads,’ in South Mumbai.<\/p>\n\n\n\n

Mr Ashish Kapadia<\/strong> has been the Managing Director at Delta Corp since April 2009. He holds a bachelor\u2019s degree in commerce and has established and managed various business sectors like paints, textiles, financial services<\/a>, and aviation.\u00a0<\/p>\n\n\n\n

Mr Anil Malani <\/strong>is the company’s President and Chief Financial Officer, with over 35 years of experience across multiple sectors. He has led the company as its ‘President – Operations’ for the past 14 years and was in charge of the group’s casino and hospitality businesses.<\/p>\n\n\n\n

Mr Manoj Jain <\/strong>is the Chief Operating Officer and has been with the company since July 2008, holding several key positions. He is in charge of the entire operations of Delta Corp’s major portfolio of assets, Deltin Casinos & Hotels.<\/p>\n\n\n\n

Delta Corp Shareholding Pattern<\/h2>\n\n\n\n
\"\"
HDFC Mutual Funds<\/a> owns 8.33% of the company, while retail investors with shares worth up to \u20b92 lakh own roughly 42%.<\/figcaption><\/figure>\n\n\n\n

<\/p>\n\n\n\n

Delta Corp Financial Statement<\/h2>\n\n\n\n

Revenue From Operations<\/h3>\n\n\n\n

In FY24, the company\u2019s revenue from operation declined by 4% to \u20b9925 crores from \u20b9964 crores recorded in FY23.\u00a0And, for the nine months- April to December 2024, revenue from operations declined to \u20b9563 crores from \u20b9730 crores recorded in the same period the previous year.\u00a0<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

Business Segments<\/strong><\/td>FY23<\/strong><\/td>FY24<\/strong><\/td>9MFY24<\/strong><\/td>9MFY25<\/strong><\/td><\/tr>
Casino Gaming<\/td>825<\/td>813 (-1.5%)<\/td>639<\/td>522 (-18.3%)<\/td><\/tr>
Online Skill Gaming<\/td>162<\/td>147 (-9.5%)<\/td>112<\/td>124 (10.7%)<\/td><\/tr>
Hospitality Division<\/td>49<\/td>51 (4.54%)<\/td>37<\/td>36 (-2.7%)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Regarding the segment-wise business performance, Casino Gaming brings over 80% of the company’s revenue. In FY24, online skill gaming (Adda52) dragged revenue growth with a 9.5% de-growth in business. For the current financial year, the casino business is witnessing de-growth, and revenue from operations has been down by over 18% in the first nine months.<\/p>\n\n\n\n

Know More:  <\/strong>SEBI <\/b><\/a>Registered Investment Advisory |  Stock Investment Advisory<\/a><\/strong><\/pre>\n\n\n\n
Net Profit <\/h3>\n\n\n\n
In FY24, the company\u2019s net profit declined by 6.56% to \u20b9245 crores from \u20b9262 crores recorded in FY23.\u00a0 And, in 9MFY25, the company profit declined by more than 50% to \u20b984 crores, compared to \u20b9172 crores recorded in the same period the previous year.\u00a0<\/p>\n\n\n\n
\"\"<\/figure>\n\n\n\n
Delta Corp Key Financial Ratios<\/h2>\n\n\n\n
Current Ratio<\/strong>: The company’s current ratio at the end of FY24 was 3.55 times, compared to 4.65 times in FY23.\u00a0<\/p>\n\n\n\n
Operating Profit Margin<\/strong> (OPM): The OPM of the company reduced to around 25% in FY24, compared to 30.2% in FY23. <\/p>\n\n\n\n
Net Profit Margin<\/strong>: The net profit margin declined to 26.4% in FY24, compared to 27.20% in FY23. <\/p>\n\n\n\n
Return on Net Worth (RoNW):<\/strong> The RoNW of the company in FY24 was 13.81%, slightly higher than 13.25% in FY23.<\/p>\n\n\n\n
Delta Corp is a debt-free<\/a> company whose debt-to-equity ratio is not applicable.\u00a0<\/p>\n\n\n\n
Delta Corp Share Price Analysis<\/h2>\n\n\n\n
Delta Corp share price has been an underperformer in the stock market<\/a> over various periods.\u00a0 The last five years’ returns of Delta Corp share price is around 40%, rising from \u20b963 on 20th March 2020 to \u20b988 on 13th March 2025. Delta Corp share price made an all-time high level of \u20b9328 on 8th April 2022.\u00a0<\/p>\n\n\n\n
\"\"<\/figure>\n\n\n\n
The primary reasons for the fall in Delta Corp’s share price decline in revenue and the GST-related issues. The Indian government levies 28% GST on total money deposited with online skill gaming platform operators, significantly increasing tax<\/a> impact on business.\u00a0<\/p>\n\n\n\n
Delta Corp has a consistent track record of paying dividends to shareholders. In the last three years, the company\u2019s dividend payout has been constant at \u20b91.25 per share.\u00a0 The company has maintained a dividend payout ratio of lower than 20%, which indicates it is a low dividend-paying company.\u00a0<\/p>\n\n\n\n
Key Financial and Valuation Metrics<\/h2>\n\n\n\n
Earning Per Share (EPS)<\/h3>\n\n\n\n
The following is the last five-year EPS<\/a> Of Delta Corp:<\/p>\n\n\n\n
Period<\/strong><\/td>FY20<\/strong><\/td>FY21<\/strong><\/td>FY22<\/strong><\/td>FY23<\/strong><\/td>FY24<\/strong><\/td>9MFY25<\/strong><\/td><\/tr>
EPS (\u20b9)<\/td>6.85<\/td>-0.90<\/td>2.51<\/td>9.77<\/td>9.12<\/td>3.15<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
The company’s EPS growth has been inconsistent in the last five years, which has impacted the growth of Delta Corp’s share price.\u00a0<\/p>\n\n\n\n
For the 9MFY25 period, the EPS came in at \u20b93.15, which is lower than \u20b96.42, recorded for the same period the previous year. Therefore, for the full FY25, the EPS growth is likely negative, which may impact Delta Corp share price.\u00a0<\/p>\n\n\n\n
Price-to-Equity VS Median PE<\/h3>\n\n\n\n
At the current Delta Corp share price of \u20b988, the stock is trading at a PE of 20.1 times and 5 years median PE of 22.7, which indicates the stock is trading at a slight discount in price-earnings.<\/p>\n\n\n\n
\"\"
Source: Screener (As of 13th March 2025)<\/em><\/figcaption><\/figure>\n\n\n\n
<\/p>\n\n\n\n
Price-to-Book VS Median Price-to-Book<\/h3>\n\n\n\n
Delta Corp\u2019s current price-to-book value is 0.9 times, and the 5-year median price-to-book value is 2.2 times, which indicates the stock is trading at a significantly lower valuation.\u00a0<\/p>\n\n\n\n
\"\"
Source: Screener (As of 13th March 2025)<\/em><\/figcaption><\/figure>\n\n\n\n
<\/p>\n\n\n\n
Delta Corp SWOT<\/h2>\n\n\n\n
Delta Corp is a leader in the online rummy and poker segment with its Adda52 platform. The group now sells it to Head Digital Works, which operates A23 Rummy and A23 Poker.\u00a0<\/p>\n\n\n\n
It is the second largest deal in the online rummy and poker segment, and Head Digital Works is acquiring it for \u20b9491 crores. Delta Corp had bought Adda52 for \u20b9182 crores in 2016. The development came as the segment witnessed intense regulatory scrutiny and higher GST levy, which was dragging on earnings for Delta Corp.<\/p>\n\n\n\n
One of the significant threats for Delta Corp is its businesses, which are concentrated in two states, Goa and Sikkim. Further, regulatory hurdles restrict it from expanding to other states. <\/p>\n\n\n\n
Another big threat is that being a discretionary spending sector, an economic downturn or slowdown in consumption negatively impacts the growth of the business. The company is witnessing a similar kind of situation in the current fiscal.\u00a0<\/p>\n\n\n\n
However, to reduce the concentration risk- the company is diversifying to the real estate sector. Delta Corp is establishing a real estate development platform in a strategic partnership with Alpha Alternatives Fund Advisors LLP and Peninsula Land. It will invest \u20b9765 crores in\u00a0 Residential Redevelopment projects and land parcels in the Mumbai Metropolitan Region (MMR).<\/p>\n\n\n\n
To strengthen its casino business, the company is doubling its gaming positions from 2000 to 4000 with a capex of \u20b9350 crores by the end of FY25.\u00a0<\/p>\n\n\n
Related Posts<\/h3>