Hits & Misses: Sharyans Wealth's take on Delta Corp, ENIL

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Hits & Misses: Sharyans Wealth's take on Delta Corp, ENIL

Despite some signs of discomfort in the market, some stocks have had surprising performances. Sharyans Wealth Management's CEO, Lancelot D'Cunha shares his views on Delta Corp and ENIL.

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets Delta Corp BSE | NSE 30/05/12 Are Mutual Funds betting on Delta Corp? Other Stocks in this news Entertainment Network India |

Despite some signs of discomfort in the market, some stocks have continued to have surprising performances.

Delta Corp is one such stock which has high trader interest. The company's gross revenues from gaming have gone up to Rs 277 crore this quarter, whereas, the EBITDA went down to Rs 46 crore from Rs 71 crore year-on-year (YoY).

Sharyans Wealth Management's CEO, Lancelot D'Cunha told CNBC-TV18 that Delta Corp's results have been negative as the revenues and profits from gaming were not up to the mark. It has performed a one-time profit by the real estate income. Delta Corp sold its property in Kenya, which generated the profit this year, he clarified.

From the earnings perspective, Delta Corp seems fairly attractive and highly priced, D'Cunha indicated. He suggested a fair value at around Rs 90 for the stock. "I would recommend a hold on the stock rather than buying at these levels," he added.

Entertainment Network India 's (ENIL's) income before interest and taxes and depreciation and amortisation (EBITDA) moved up on the back of strong advertisement yields as well as improved utilisation, especially in the metros and tier two towns. D'Cunha felt that the stock has surprised on the earnings as well as on the EBITDA side.

ENIL is sitting on a cash of Rs 115 crore which will enable it to bid for phase three licenses announced recently. The phase three is expected to be in process within the next few months. D'Cunha explained, "Once the phase three is in process, ENIL will be a major player in the radio space."

"With consumption demand going strong, ENIL will trade at about 10 times its EBITDA," he advised.

Also watch the accompanying video for D'Cunha's comments.