Motilal Oswal Securities has a buy call on Delta Corp with a target price of Rs 312.The current market price of Delta Corp is Rs 262.25.Time period given by the brokerage is one year when Delta Corp price can reach the defined target.
View of the brokerage: DELTAs revenue increased 19 per cent YoY (our estimate: 14 per cent) to Rs 2,043m in 4QFY19.
EBITDA margin inched up by 370bp YoY to 43 per cent YoY (our estimate: 40 per cent), driven by expansion in the online gaming margin (up 1,000bp YoY/500bp QoQ to 24 per cent).
EBIDTA stood at Rs 879m, as against our estimate of Rs 784m.
On 12th Mar19, Gaussian Network Private limited (wholly owned subsidiary of the company) sold its Fantasy League Business to Halaplay Technologies Private limited (HTPL) for a consideration of Rs 50m.
Gain on sale amounting to Rs 42.7m, which is the difference between the sale consideration and the net assets transferred, is presented as an exceptional item.
Adjusted PAT grew 19 per cent YoY to Rs 544m against our estimate: of Rs 495m.
Segmental performance for 4QFY19: Casino gaming revenue grew 21 per cent YoY; EBIT margin expanded 40bp YoY to 36.8 per cent.
Online gaming revenue increased 11 per cent YoY; EBIT margin expanded 1,000bp YoY (+500bp QoQ) to 24 per cent.
Hospitality revenue grew 8 per cent YoY to Rs 236m; the company reported EBIT loss of Rs 29.5m.