I think differently. This is very obvious case. After two years from now there will not be any corona. Everyone will get vaccinated. Casino business will be throwing free cash flow again. Comoany has enough cash to survive in these two years without any business. It will earn more than 250 crore profits in 22-23 even if online gaming business does not grow even 1%, Nepal, Jailesh,Sikkim do the same as now. Online business is doing well and is having no threat. Everyone will be in hilarious mood to see the profits and growth. At that time how much one will be willing to pay is anybody’s guess as growth and visibility has lot of value. People will count Nepal, online, Sikkim, Goa, Jailesh even Daman to derive future profits. They will forget lockdown.Now discount the cost of capital 40% to arrive at present value. One can easily see the bargain. Great investments are done in uncomfortable times. Bull markets rise on wall of worry. I dont see any risk at this price. If one wants to validate my theory, see the price of world’s biggest casino companies like Sands China, Sands Las Vegas. One can get the idea easily. I dont see any reason for this company to fall this much.
https://g.co/kgs/yqGt17
https://g.co/kgs/D4rvsm
My point is simple. If you are shutting shop for two years and after that business is as usual, go for it if price is down more than cost of capital.
Disclosure - Stuck with holdings at high price. Accumulated heavily recently. Big portion of my portfolio again.
These companies have same threat like Delta but these companies did not crack like Delta.