I came across an interesting snippet of information. Delta Corp, India’s most recignized gaming company, which has provided splendid returns to investors is currently valued at 6730 crores ( 1.03 billion USD).
Another company, Boyd Gaming, listed on NYSE, a leading gaming company in the US is valued at around 23000 crores (3.6 billion USD).
Adjusting for purchasing power, both Delta Corp and Boyd Gaming are available at similar valuations.
But, Boyd Gaming has sales exceeding 12000 crores. Post adjustment for purchasing power, Boyd is 12-15 times larger than Delta. Now, people may adopt different conversion rates for PPP. Hence,the numbers may differ. But, the idea remains that despite being a company much,much larger than Delta valuations accorded are similar. So, it’s either the American markets undervaluing or Indian markets over valuing.
But, it’s pertinent to note that Boyd is a heavily indebted company.
So, is this disparity due to elevated debt or there’s inefficiency in markets.
Only time will tell.