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1 JhunJhunwala Owned Small Cap Stock That Can Be A Play On The Reopening Theme Post Corona Crisis
When we talk about Rakesh Jhunjhunwala and his family's stake it is quite heavy in this penny or small cap scrip that has a monopoly in the casino business in India- Delta Corp. Though the gaming business is expanding with players like Nazara, the company-Delta Corp has a dominant presence in Goa's offshore casino market.
About Delta Corp
The company is a flagship company of the Group and is the only listed company engaged in the casino (live, electronic and online) gaming industry in India. Incorporated in 1990 as a textiles and real estate consultancy company, it has evolved into diversified segments like Casino gaming, Online gaming, Hospitality and Real estate.
The company, along with Subsidiaries, currently own and operate casinos in India, in the states of Goa and Sikkim, also started an international casino in Nepal, offering approximately 2,000 gaming positions. Also the company has ventured into the fast-growing online gaming space through its acquisition of Gauss Networks Private Limited, which operates the online poker site 'Adda52.com'. Other big brands in its portfolio include Deltin Royale, Deltin JAQK, Adda 52 Rummy.
So, as we are seeing massive interest in the gaming industry which is imminent through the ads featured on media, the company will capitalise on its online and offline gaming. Also, its presence and boost up of its hospitality business will only gather wings once the whole corona situation improves
Company’s fundamentals:
After succumbing to the corona crisis and being at a loss like situation in Fy21, the company's revenues are seen to improve in Q3Fy22 with total income from operations being more than double YoY at Rs. 165.2 crore. Also, after being in a loss situation over the last 2 quarters, the company has come out strongly with profit after tax from ordinary activities at Rs. 65.90 versus loss of Rs. over Rs. 5 crores in the previous quarter.
Conclusion:
As the economy revives and consumer travel and spending plans once again see a full upswing, travel and entertainment related stocks will again pick up. The stock's lifetime low and life time high are Rs. 16 and Rs. 401.6 and considering current price of Rs. 284.05 as in early trade on March 15, 2022 it is trading at a heavy discount of 29%. So experts in the near to medium term, see the stock to hit a 5-year high of Rs. 364.45. This means an upside of 28% from the current levels.
Disclaimer:
While the stock can be a good buy, the stock market environment is highly risky, so do your own analysis as to when and where you need to enter the scrip and only after due diligence you may consider it. So, the analysis should be largely considered to gain insights on the company and stock.
