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Last Updated : Jan 15, 2019 11:39 AM IST | Source: Moneycontrol.com

Buy Delta Corp; target of Rs 320: Motilal Oswal

Motilal Oswal is bullish on Delta Corp has recommended buy rating on the stock with a target price of Rs 320 in its research report dated January 10, 2019.

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Motilal Oswal's research report on Delta Corp


Revenue increased 27% YoY (our estimate: 28%) to INR2,058m in 3QFY19, primarily driven by the gaming business. EBITDA margin contracted 150bp YoY, but expanded 290bp QoQ to 40.8% (our estimate: 37.2%), driven primarily by a recovery in the online gaming EBIT margin (19% in 3QFY19 v/s 2% in the last quarter). EBITDA of INR840m, too, was higher than our estimate of INR769m. However, higher-than-expected tax restricted PAT growth to 13% YoY (INR505m v/s our estimate of INR497m).


Outlook


DELTA is expected to deliver sales/PAT CAGR of 25% over FY18-21. We roll forward our target price to Dec’20E EPS of INR11/share. We continue valuing the stock at 30x P/E to arrive at a target price of INR320/share. Maintain Buy.


For all recommendations report, click here


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First Published on Jan 11, 2019 03:54 pm
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