Buy Delta Corp; target of Rs 100: Nirmal Bang

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26 Aug, 2025 12:21

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Nirmal Bang is bullish on Delta Corp and has recommended buy rating on the stock with a target of Rs 100 in its August 3, 2012 research report.

“Delta Corp Limited (Delta Corp) registered net sales of Rs.71.9 crore during the quarter compared to Rs.91.2 crore during the same quarter last year, decline of 21 per cent y-o-y. Net profit for the quarter stood at Rs.16.2 crore compared to Rs.11.8 crore last year, an increase of 37.3 per cent y-o-y.”

“The reason for the decline in net sales was the change in segmental revenue. Since the company operates in real estate as well as gaming and hospitality segment, there was higher contribution in the real estate segment last year. On a higher base, the revenues from the real estate segment appear low. The growth in the hospitality and gaming business continues to be robust in this quarter defying any seasonality element in the business. It should be noted that company’s second vessel was dry docked for more than half of the quarter. This, not only led to an additional expense of Rs.1.7 crore but also reduced the number of operating days to 40. The company has acquired 11 acres of land in Sri Lanka during the quarter and would be expanding in that geography as well (over the next three years). The facility at Daman, Thunderbird Resorts is expected to commence operations in the present quarter while the gaming operations of the third vessel, Horseshoe, will commence in Q3FY’13.”

“The complete benefits of the expanded facilities would be visible in FY’14E. We expect revenues of the company for FY’14E to the extent of Rs.709 crore and EBITDA of Rs.364 crore. The net profit for the year should be around Rs.189 crore, translating into an EPS of Rs.8.3. Owing to its niche business model with strong entry barriers, robust expansion plans and a focused management team, we expect Delta Corp’s stock to quote at 12x FY’14E earnings to arrive at a price target of Rs.100. This highlights an upside of 72 percent over the next 12-15 months,” says Nirmal Bang research report. 

Institutional holding more than 40% in Indian cos

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