Delta Corp surges 6.5% on strong Q3 numbers; Emkay maintains buy

Shares of Delta Corp gained over 6.5 percent intraday on Tuesday as investors cheered the company’s healthy results for the December quarter.

The company reported a jump of over 300 percent at Rs 44.7 crore for the quarter, while revenues grew 56 percent at Rs 162 crore.

The operating profit, meanwhile, rose 113 percent at Rs 68.7 crore, while the operating margin came in at 42.4 percent against 31 percent year on year.

Emkay has maintained its buy call on the stock with a target of Rs 411. It believes that margin slightly off estimate due to high marketing costs. Further, some costs reported in Q3 were one-time which would boost FY19 footfalls. It sees EPS CAGR of 40% over FY18-20. It continues to like the firm as a gaming play in India.

The stock has gained over 26 percent in the past one month, while its three-day gain stood at 4 percent. At 09:30 hrs Delta Corp was quoting at Rs 329.40, up Rs 11.65, or 3.67 percent, on the BSE. It touched a 52-week high of Rs 338.90.