Delta Corp Ltd faced a significant setback as its shares plummeted by 28% intraday due to the recent imposition of a 28% GST levy on online gaming, horse racing, and casinos by the GST Council. Currently, online gaming platforms pay an 18% GST on platform fees. Delta Corp shares fell by 27.79% to Rs 178.20 during the afternoon session, compared to the previous closing price of Rs 246.80 on the BSE.
The market capitalization of Delta Corp also witnessed a decline to Rs 5,177 crore in the current session. Despite showing a 7.30% increase over the past year, the stock has experienced a 10.55% loss since the beginning of this year. In terms of technical indicators, Delta Corp's relative strength index (RSI) stands at 53.1, indicating that it is currently trading in neither the oversold nor the overbought zone.
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Analysts have shared their perspectives on the stock's outlook amidst the recent decline. Vaibhav Kaushik, Research Analyst at GCL Broking, highlighted the impact of the 28% GST on users and suggested monitoring the next two quarters' results. The stock is expected to range between Rs 150 to Rs 210, leading to a recommendation to avoid investing. Abhijeet from Tips2trades noted that Delta Corp's stock price experienced a crash after the proposed 28% GST on online gaming and casinos. He advised investors to refrain from purchasing until the daily resistance level of Rs 222 is broken on a closing basis.
Delta Corp operates casinos and is involved in real estate, gaming, hospitality, and other sectors. The company's gaming and hospitality businesses operate under the DELTIN brand, and it owns three casinos in Goa, including Deltin Royale, Deltin JAQK, and Deltin Caravela.
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