Delta Corp - A huge but risky opportunity

Good. Ist point is very disappointing for me. My conviction was on Online gaming and Casinos . May be I have to shift my funds to Nazara Tech? will look for related thread.

I undertand online poker segment well. And Deltas online presence i.e Adda52 which was the market leader 3-4 yrs back has been doing very poorly lately. Its a space where small pvt sites( majorly poker baazi) using customer centric approach took market share away from Adda52 little by little and adda52s management always stayed adamant in there approach and never changed. They are near about done and dusted from that space and right now 3-4th in revenue in that space even in a small market wth max 5-6 good active players.
This is 1 reason am nt taking positions in Delta even when it went down below 110. I just dnt see a good time for them in near future unless the GST method moves back to the old approach

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Hi Sanskar, In my view, Nazara tech is in even more difficult business. You have to introduce a game that has to be a hit in the market. And even if the game is hit, you have to either keep bringing something new to the game to keep players engaged or introduced new games to be in the market. The players shift from one game to the other very fast as they get bored. It’s only in rare cases like PUBG, Candy crush, etc. where users keep coming back.
Just my view… open to any criticism.
Disc. Not invested in delta or nazara.

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There seems to be a lot of variables going on in the company. Whether it is about GST claims, Adda52 losing market share, or Nepal casino selloff, the risk seems too much. Don’t understand where this is going and what management wants…
disc: not invested

True… but Nazara tech I am yet to study… however I assume they have games similar to Rummy Circle etc which are equal to gambling which has potential in Indian market…

Currently it has high PE ( 2x of Industrial PE) and low promoter holding etc hence cant consider at this moment.

Seriously… I invested small amount only now. Investing in Delta Corp itself has become Gambling :smiley:

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I personally would have taken position in Delta if there online arm Adda52 was doing well. Coz thats one area they can expand tremendously in future as market is ripe for poker a sport to grow. I have been in the poker space for 10 years and i think i understand the space some what. Adda52 is one of the poker sites where in most of the top management doesnt even know the game. Poker used to be a small community and all that was needed was a customer centric approach… they just never cared… made policies in corporate meeting rooms without understanding what players want. Poker baazis management are all players themselves and they sucked the market share out of adda52 and now are doing brilliantly even in a tough gst scenario. I just dnt see add52 doing anything good and is losing more and more space day by day. Adda52 basically spent a lot in promoting poker as sport by doing events in companies and colleges accross the country but sites like baazi took advantage of the new folks coming in. And without a good online presence i dnt see much future in the gaming space for delta. And hence am nt entering this stock even at present pricing.

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Delta Corp.'s investment thesis has become more uncertain due to a lack of clarity on future online gaming business plans, as identified through my research. Additionally, the company’s competitive moat and long-term growth prospects in the Indian casino industry appear limited, particularly given the government’s regulatory influence. Considering these factors, I believe Delta Corp. is a riskier proposition at this time and would avoid the stock for the moment.

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New Government will have some clarity I expect… Since there is no much competition any positive move will bring up this business on fast track…

Thanks for a comprehensive view!!

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Any recent views on Delta? Goa was full of tourists when I visited last week despite off season and am sure Casinos business will be doing very well. If there is a turnaround, does valuation appears reasonable to enter? Any relief possible on GST for online gaming? Appreciate thoughts…