Delta Corp gains on bargain hunting

Delta Corp rose 1.56% to Rs 182.05 at 12:07 IST on BSE on bargain hunting after a recent slide.

Meanwhile, the S&P BSE Sensex was up 169.49 points, or 0.57% to 29,745.23.

On the BSE, 6.76 lakh shares were traded in the counter so far, compared with average daily volumes of 10.90 lakh shares in the past one quarter. The stock had hit a high of Rs 184.30 and a low of Rs 179.25 so far during the day.

The stock hit a record high of Rs 218.40 on 5 April 2017. The stock hit a 52-week low of Rs 76.80 on 6 May 2016.

The stock had outperformed the market over the past one month till 10 April 2017, rising 4.58% compared with 2.17% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 38.52% as against Sensex's 9.95% rise.

The mid-cap company has equity capital of Rs 23.16 crore. Face value per share is Re 1.

Shares of Delta Corp fell 16.10% in four trading sessions to settle at Rs 179.25 yesterday, 10 April 2017, from its close of Rs 213.65 on 3 April 2017.

Recent selling in the stock was triggered by rumors of a possible merger of Daman and Diu -- a coastal Union Territory (UT) -- with the state of Gujarat.

As per market buzz, Prime Minister Narendra Modi, during his upcoming visit to the UT on 17 April 2017, may consider the proposal for the merger. The merger of Daman and Diu with Gujarat will hurt Delta Corp's casino business in the region because gambling is banned in Gujarat. Delta Corp operates an integrated hotel and casino resort in Daman.

Delta Corp's consolidated net profit rose 37.2% to Rs 10.06 crore on 4.47% increase in net sales to Rs 103.57 crore in Q3 December 2016 over Q3 December 2012.

Delta Corp owns three offshore casinos in Goa out of a total of six, making it the dominant player in Goa. In March 2014, Delta Corp launched 'The Deltin', India's largest integrated casino resort, in Daman. The soon to be launched casino at The Deltin will be spread over 60,00 square feet, and will have approximately 1,000 gaming positions.

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