Delta Corp - A huge but risky opportunity

I bought a big quantity at 180 and exited and booked loss completely at 143 at the previous fall, when it was close to selling free.

That was a bitter bullet to bite. But this strategy has paid me off. I don’t like to be invested in stocks, which has lot of uncertainty.

Last such big fall happened to me was in yes bank with big quantity. Booked 25% loss in that stock around 225. Never averaged. And today I’m still in the market.

In the case scenario, if deltacorp inches back to 200…I will never regret. There is no dearth of other good stocks in market.


Disc: Invested and continue to hold

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Sometimes consumer behaviours are so difficult to understand. What could be the reason of people / tourist avoiding going to Casinos? I never thought gambling is price sensitive and the kind of target audience Delta attracts…how much that matters.

Remember the increase in GST? everything has an impact.

That is effective October onwards, Q2 will not get impacted because of that

The risk-reward of this theory is woeful. The risk is huge and the reward is miniscule.

Because, down the line, many players will keep cropping up. Every place, which doesnt have competition, doesnt exist.

book value is around 87 of this, I feel the tax demand is ridiculous worth the risk in my opinion.

High court stays new tax demand of 628 crore

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Key Information:

  • Delta Corp Limited and its subsidiaries received demands for payments related to alleged tax shortfalls from the Directorate General of GST Intelligence in Hyderabad.
  • The amounts involved are substantial, with Delta Corp Limited facing a demand of INR 1,11,39,61,03,423 (Rupees Eleven Thousand One Hundred and Thirty Nine Crore Sixty One Lakh Three Thousand Four Hundred and Twenty Three).
  • The subsidiaries, Highstreet Cruises and Entertainment Pvt. Ltd., and Delta Pleasure Cruise Company Private Limited, also received demands for substantial amounts related to alleged tax shortfalls.

Legal Action:

  • The Hon’ble High Court of Bombay at Goa considered writ petitions filed by Delta Corp Limited and its subsidiaries on October 23, 2023.
  • The High Court has directed the tax authorities not to make any final decisions on these tax-related matters without the High Court’s prior permission.
  • Dates have been set for completing legal processes, hearings, and the final resolution of the writ petitions.

In summary, Delta Corp Limited and its subsidiaries have received significant demands for payments related to alleged tax shortfalls, and they are currently pursuing legal action in the High Court to address this issue. The High Court has temporarily prevented the tax authorities from making final decisions until the legal process is completed. This is an important development that the company is disclosing to the stock exchanges.


Delta corp investing in Peninsula Land are they changing their business model to derisk from gaming?

Could someone explain the above filing in layperson language and what’s the impact of this on the business, near term/long term. Thanks!

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Corporate Governance issues at Delta Corp.

I was a long term investor (holding for over 5 years) in the company as I was a believer in the long-term prospects of the gaming industry. However, I exited all my positions as soon as the GST levy on deposits was introduced, as this raised significant questions about my rationale for investing in the business.

The key event for the company is, if the levy is removed or substantially diluted from current levels. As a person who understands this industry, if the govt. does not announce any relief in March 2024, the industry will slowly and surely die as the cost structure for the participants is unsustainable. In the online business despite Adda bearing the entire 22% cost (effective GST levy), which means that the company has been losing money (transaction cost being more than margins), the footfalls have been falling and they are forced to give more incentives for people to come on their platform.

The venture into real estate to me makes sense and I think they have understood that the sector will always be vulnerable to draconian regulations. They had planned to develop an offshore casino in Goa, but with these recent developments, any fresh expansion in gaming seems imprudent. Exploring avenues in hospitality like hotels etc. makes sense and the recent partnership with Peninsula is a step in that direction, which I think makes sense.

Best Regards


Any fresh perspectives on Delta Corp? I have added a few to my PF. Hope they win the GST battle.

The business is good and growth is sure as the disposable incomes of families increase along with strong tourism…growth.

I guess Delta is at a critical juncture… and lot of things are not in thier hands…

  1. I think they have resigned to the fact they cannot grow thier gaming operation… license for more casinos is not forthcoming … they have also sold thier Nepal casino and are not looking at more options except Daman… which is on limbo for a long time
  2. GST is a issue they will come out of and the current Gaming business generates good cash…
  3. they are looking to deploy this Cash in real estate and I think they can do well …but again this has to play out
  4. Online gaming is a optionality… it can generate good valuations if all goes well…

I would buy below 100 with lot of patience as real estate play will take 5-7 years to play out…