Delta Corp Overview
Delta Corporation Limited is a unique company in its own right. It is the only company listed on stock exchanges as of now which is in area of Casino. It operates in live, electronic and gaming Casino. So all the modes of operation are covered by this company.
You may have heard of website Adda52.com. This website is owned by Delta Corporation Limited.It has casinos in Goa, Daman and Sikkim. Along with Casino and Online site it also has Hospitality presence. It has 3 hotels in Goa area and one in Daman.
So the company is combining the hospitality sector with its Gaming business to provide one stop solution to tourists. Mainly the concentrated presence in one area may be a concern but it is expanding the footprints. Like recently the Sikkim casino came into existence and it also took control of Adda52.com
Delta Corp Share Performance
Now lets see how the company has performed in share market. Has the niche presence of the company worked in its favor and helped investors make money or has it gone totally unnoticed by the investors.
Below graph shows the share price appreciation from the days of IPO. So you can clearly see how well the company has performed over the years.
As you can see the share price was more of stagnant till year 2016. The prices were less than 100 for all these years only exception was once or twice it crossed 100 and several occasion it just touched the tip.
For all these years it was in consolidation phase waiting for value unlock. The Big Bull Rakesh Jhunjhunwala entered the stock and it started flying. The year after 2016 was bullish one for it and it made all time high.
During this period the company has given good return to investor. If you consider the initial period from IPO to this date the company has given good return to investors.
Delta Corp My Opinion
Delta Corporation limited operates in all together new niche as per Indian business landscape. Casinos is one very under penetrated area in India. There is lot of scope in this field. Still many consider this not as an entertainment. There is taboo associated with this field.
But with time and growing urban population this area will see growth and company can penetrate in new locations. Currently it is heavily concentrated in one location Goa only. The reason is simple. Goa attracts foreign and urban crowd the most.
The growth in this field and penetration in new areas will give boost to the company and same will get reflected in the share price. Since it is early starter in this area it will get the benefit.
This may be the rationale why Rakesh Jhunjhunwala has invested in this stock. People prefer to know the niche and monopoly company operating in sector of growth then this is one company you can put in your radar.
The online entertainment industry is also poised for growth so presence in Adda52 will boost the company revenue and it and in can also leverage its presence to explore more companies in this niche.
Conclusion
Delta Corp is an interesting company. It banks on fact that Indian will start loving the Casino culture. With growth in IT and other industry which increases interaction or movement of Indian to west may increase Casino popularity in India.
This will help company expand in new areas. Also foreign tourism will also make it popular. I am tracking this company and have added it to my stock watch list. I would also encourage you to go through portfolio of top investors because that will help you discover unknown companies.