Delta Corp gains after announcing plans to operate casino in Sikkim

Shares of Delta Corp rose around 4% on the BSE after the company said it signed a leave and license agreement for premises in the Denzong Regency Hotel, Gangtok, Sikkim, to operate a casino.

The announcement was made after market hours yesterday, 26 July 2016.
On BSE, so far 2.67 lakh shares were traded in the counter, compared with an average volume of 3.65 lakh shares in the past one quarter. The stock hit a high of Rs 95.80 and a low of Rs 93.60 so far during the day. The stock hit a 52-week high of Rs 100.80 on 5 July 2016.

The stock hit a 52-week low of Rs 49 on 29 February 2016. The stock had outperformed the market over the past one month till 26 July 2016, surging 6.16% compared with 5.98% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, advancing 6.16% as against Sensex's 7.57% rise.

Delta Corp said that it has also obtained a provisional license from the Government of Sikkim to operate casino. The company is in the process of refurbishing and getting the premises casino ready, which should be completed in the next three months.

In pursuing its strategy of expanding its gaming imprint, Delta will now have a presence in Sikkim, operating a live gaming casino offering approximately 150 gaming positions, thereby catering to the Eastern region market. The company will thus, in addition to three offshore and one onshore casino in Goa, will strengthen its presence by adding this Casino in Sikkim, making it a dominant and formidable player in the Indian gaming and entertainment space, the company said in a statement.

On a consolidated basis, Delta Corp's net profit surged 3532.1% to Rs 28.33 crore on 17.6% rise in net sales to Rs 102.68 crore in Q4 March 2016 over Q4 March 2015.