What is surprising is that gambling laws are one for Goa, daman etc i.e. ‘The Goa, Daman and Diu Public Gambling act 1976’. So first that act has to be repealed and new act for individual places since merger will not lead to repeal of act automatically. This seems difficult one to put in place in short period of time even if merger goes through. I think there are various factors and vested interests that will prevent its announcement. Link below suggests not happening. Nothing is impossible though.
Many triggers like Daman opening, Sikkim ramp up and online biz integration ahead but huge potential dilution of 15-20% is a serious dampener for me. Will have to wait for details on fund usage plans to take call. They acquired poker site and looks like some rummy site is on their radar. Also heard rumour that two existing but non operational licenses are up for sale in Goa.
Wish I knew the answer. Everyone is waiting but the local authority is delaying for some reason or other. This is the first casino in Daman so admin wants to be fully prepared with pros and cons before allowing it. They put a hard to fulfill condition of allowing in 5 star hotel only so Delta went ahead and built it. I have been to Daman and there is practically no biz case to build a 5 star property there. The place mostly attracts Gujarati tipplers in search of cheap booze. I have another hypothesis that they might want delta to buy out hotel partner so that hotel and casino remains as one entity. This could have forced them to raise funds. BTW fund raising was a complete behind the curtain event but massive subscription has happened. I am just assuming HDFC MF would have done proper due diligence.
The EPS for Mar 17 quarter is 0.49. For the Mar 16 quarter it is 1.2.
However, the profits for Mar 17 are 1397.31 lakh and for Mar 16 they are 1419.54 lakh. The corresponding shares outstanding for Mar 17 are 2316.24 lakh (face value Re 1) while for Mar 16 they are 2306.64 lakh.
This means that the profits for Mar 17 and Mar 16 are similar and so are the number of outstanding shares.
So how did the EPS drop to less than half? Is it caculated only of the Net Profit and not Total Comprehensive Income?
Well, online gambling is only ~100cr out of total 1500cr market. Do you expect a separate report on the same? I find many positives in the report which gives a macro level view on behavioral pattern and evolution of gamers in India.
Online gambling (Poker, Rummy etc and not teen patti ) is here to stay. Other day, Bombay high court and earlier Supreme Court declared that online games can not be banned since they are not gambling strictly. So runway is getting ready and need to see who benefits from the same. Thankfully, Delta acquired Gauss which is growing at 30-35% on a small base (~50cr) with EBITDA margin of 30-35%.
Quite possible.
Poker revenue will be 120crs for the current year, Wwhich can easily transalte to 36crs of Ebitda. Which is not there last year.
And also finance cost will be nil from the current quarter and there will increase in other income.
That’s the best part. Market is not pricing in any upside from daman. As and when it comes, the market will price in.
Currently the market is looking how their poker site does and if there is any acquisition as far as rummy is concern.
Online will be next phase of growth for delta.
