Delta Corp – Chances of jackpot for investors increasing

Delta Corp limited incorporate in the year 1990, is the largest and only listed company in India engaged in the casino and gaming industry. The company started out as a textile and Real Estate consultancy company. Later in FY08, they de-merged their textile business. The company’s primarily engaged in gaming and hospitality segment after that. Delta Corp is the leading gaming company capturing the market through its 5 casinos located in Goa, Sikkim and an integrated casino resort in Daman.

The company operates 1,800 gaming positions. Further, they have ventured into fast-growing online gaming segment by acquiring Gauss Networks which operates an online poker site called, rummy site as well as an online fantasy sports site.


Market Data:



NSE Quote


BSE Quote




Market Cap

Rs. 6975 Cr.

52 week high


52 week low


Investment Rational:

  • Ventured into online gaming space:

Jaydev Mody led Delta Corp acquired one of the India’s largest online pokers gaming website adda52 from Gauss Network for a total consideration of Rs. 223.9 crores in 2017. Gauss Networks which operates and specializes in online poker site called, rummy site as well as an online fantasy sports site.


  • Increased penetration in Online gaming space:

On March 6, 2019, Delta Corp acquired 15.52% stake (31,994 equity shares) in HalaPlay for Rs. 15.5 Crores. Further, as a part of the deal Gaussian Software (Delta Corp’s subsidiary) will transfer their fantasy sports division for additional 4.03% shares of Halaplay. Halaplay is the second largest fantasy sports game after Dream 11; they have a turnover of Rs. 2.98 crores with 2 million users at present. Furthermore, with the new investment in Halaplay and ongoing Cricket IPL, upcoming World cup and T20, this deal can generate significant growth for Halaplay as well as Delta Corp. Out of the Rs. 15.5 Crores, Delta has paid Rs. 7.75 crores un till now.

Due to the rapid growth in digital infrastructure has led to an exponential growth of online gaming; this segment is expected to reach Rs. 11,900 crores by FY23. The online gaming industry has grown twice in 4 years in FY14 it was pegged at Rs. 2000 crores and in FY18 it has increased to Rs. 4,400 crores.


  • Expanding strategic investments in casino business:

On March 8, 2019, Delta Corp’s wholly owned subsidiary Gaussian Software entered into an agreement to buy 1,00,00,000 equity shares of Jalesh Cruises Mauritius (JLCM). The deal of purchase of equity shares is worth USD 10 million that will be completed by Gaussian Software in 3 tranches. Gaussian Software has already paid USD 5 million during the quarter and USD 3 million in the first week of April 2019. The balance USD 2 million will be paid by June 2019. The company will hold a 25% stake in JCLM.  JCLM proposed to acquire cruise ships and operate cruise service. The cruise will have 25-30 casino tables for this Delta Corp will pay fixed fees of USD 5 per person to JCLM. The cruise will operate the first 8 months in India and 4 months in UAE.


  • Expanding its footprint in Nepal:

The 2356 rooms 5 star hotel Marriott Kathmandu inked a deal with Delta Corp to run a casino in the capital of Nepal Kathmandu.

The casino operation by Delta Corp in Marriot hotel Kathmandu in the Naxal region at Fair field will commence its operations in the next 2 months. This revenue generated from this deal will reflect in Delta’s books from FY20.


  • Sikkim Casino to garner Revenue growth:

In 2016, Delta Corp had entered into an agreement (leave and License) for the license of premises in the hotel Denzong Regency in Gangtok, Sikkim. From 2016 the company has commenced its casino operations in Sikkim with more than 200 gaming position across 26 live gaming tables. Sikkim Casino is one of the growth drivers after the opening of Pakyong Airport which has led to an increasing in tourism in the state.


  • Increase in Footfalls in casino and hospitality segment:

The footfalls in hotels jumped 40% to 1, 20,000 in Q4FY19. The footfalls in casino increased by 36% from 3, 17,000 in FY18 to 4, 31,000 in FY19.

Apart from the strong growth of tourism in Goa, the gaming operations are expected to increment in terms of revenue in FY20 as there will be the launch of the traditional cruise line in which delta corp has 25% stake. During the launch, the company will manage the casino and capture virtually all of the economics. This will help the company to grow.

Moreover, the company prefers to sustain a balance between mass crowd and VIP on the basis of the uncertainty. In terms of Mass crowds, there is less risk appetite and ability as compared to premium clients. The premium customers provide a higher probability of them losing and the house wins. In addition to this, the entry fees for their casinos depend upon the season and crowd.


Key Parameters

Net Profit

Rs. 45.25 Cr.

P/E Ratio





Rs. 7.29 per share






Owing to the niche business model of gaming and hospitality, robust expansion plans via M&A, first mover advantage in the casino business, and focused management this stock trades at 40.3x FY20 earnings. The stock trades at EV/EBITDA 21.42 FY18 earnings.

With its early entry advantage in an industry with huge entry barriers and low penetration, Delta Corp is well-positioned to benefit in the long run. Also, the company’s both investments (Halaplay and Jalesh cruises) will garner revenue growth in the long term.

Further, the overall growth factor and positive sentiments for the company it makes Delta Corp a compelling Buy with a target price of Rs 314.


Shareholding pattern




Mutual Funds


Alternate Investment Funds


Foreign Portfolio Investor




Non-Institution Investors



Shareholding pattern of Delta Corp
Shareholding pattern of Delta Corp


Delta Corp is the only listed company in the gaming business.


Business Strategy:

The new Gaming Policy recommended by the state of Goa is also expected to bring various positive changes. Onshore casinos are far simpler to scale up, as well as more steady from a business perspective and also offers significant cost benefit. The company’s priority continues to focus on the business elements within the control, delivering on each of the pillars of growth of Delta:

  • Continuing to improve the company’s core casino businesses, based on the evolving needs and behaviours of customers
  • Further expanding the online gaming services for gamer and publishers
  • Optimizing organisational efficiency while investing for the future


Other Highlights:

  • Early entry advantage:

There are various entry barriers out of which licensing being one of the biggest hurdles. Delta Corp enjoys first mover advantage where out of the 6 casinos in Goa they have acquired 3 of them. There is a strict cap on the number of licenses to be issued.


Company Overview:

Delta Corp Limited is the leading gaming and hospitality company in India. The company has captured major market share of India’s gaming segment through its 3 offshore casinos in Goa out of the 6 offshore casino license and owns and operated 1 land-based casino in Goa. Further, the company owns and operates one casino in Sikkim and one in Daman. Delta Corp has further expanded its casino in Kathmandu Nepal, which will begin its operation in the next 2 months.


Gaming and Entertainment:


Delta Corp owns and operates 3 offshore casinos in Goa out of 6 offshore casino licenses and also 1 land-based casino. The total number of gaming positions in Goa is about 1,800. Offshore casinos are Deltin Royale, Deltin JAQK Goa, and Deltin Caravela Goa. One on-shore casino is Deltin Suites Casino Goa.


Sikkim Daman and Online gaming:

In 2016 Delta Corp had entered into an agreement (leave and License) for the license of premises in the hotel Denzong Regency in Gangtok, Sikkim. From 2016 the company has commenced its casino operations in Sikkim with more than 200 gaming position across 26 live gaming tables. Sikkim Casino is one of the growth drivers after the opening of Pakyong Airport which has led to an increase in tourism in the state.



Deltin Daman Casino was launched in the year 2014. It is India’s largest integrated casino resort with access to 1200 gaming positions. It is a five-star hotel with 176 rooms and banquette facility spread over approximately 60,000 sq. ft.

The company has ventured into fast-growing online gaming segment by acquiring Gauss Networks which operates an online poker site called, rummy site as well as an online fantasy sports site.

The company started its third website operational from February 2018 ‘’, thereby offering a bouquet of options to customers in the online gaming space. This website offers fantasy gaming for the sports of cricket, football and kabbadi.


Hospitality Segment:

Delta Corp’s gaming and hospitality go hand in hand. Both of these businesses of the company drive each other. The company owns and operates 2 hotels and 1 villa in Goa and one hotel in Daman. Furthermore, the company also has a substantial stake in the holding company of Ramada Caravella Beach Resort but with no operational interest in management control. The 2 hotels in Goa are Deltin Suites Goa with 106 rooms with the integrated casino, one villa in Goa is Villa Marina with 6 duplex rooms near Riverside. One five-star integrated hotel in Daman i.e. The Deltin with 176 rooms, 3 bars, and 4 speciality restaurants.


Popular Games of Delta Corp:


Black Jack:

Blackjack is played with 6/8 decks of cards. Cards of rank 2 to 10 are arranged according to face value. All the face cards have 10 points. The highest hand is the ACE and any of the 10 point cards in blackjack during the initial deal and this deal is called as blackjack or natural. It pays one and a half times a person’s original bet. Apart from blackjack a winning hand also pays money. The player wins if his hand has more points than the dealer without reaching over 21. The player loses if they are less and the game ties if they are the same as the dealer’s points.

A course of blackjack begins with each player putting forth a bet directly in front of him. The dealer deals two cards for every bet and one card for the house. Then the dealer acts upon each of the hands. If the player wants to take more cards, he has to specify it to the dealer by tapping behind the box, if not then wave across. Then the dealer picks cards on the dealer’s hand until the points lead a total of 17 or more. If the dealer’s total goes above 21, all the bets are paid. If not, then each hand is compared with the dealer’s hand and paid or taken respectively.


American Roulette:

Roulette game was named after the French word that means little wheel. In the game, players may choose to place bets on either the colours red or black, a single number, group of numbers, the number is odd or even, or can bet on high (19–36) or low (1–18) numbers. Further at whichever number the ball drops, is declared as the winning number and the bet has complied accordingly.


Dice or Craps:

Craps is a very speedy game. Players bet money against the result of one roll, or of a series of rolls of two dice. Players take turns to roll the dice. To begin with, the shooter (who is rolls the dice) obligated to bet the table with minimum on either the “Pass” line or the “Don’t Pass” line also referred as “Line Bets”. Other players at the table will make a wager on the shooter’s dice rolls. In this role, a dice result of 7 or 11 is called a “natural,” it means a win for players who made pass line bets. If the shooter’s come-out roll is a 2, 3 or 12, it is known as “craps” and the players who lose their pass line bet. If the remaining numbers of 4, 5, 6, 8, 9, or 10 are rolled on, then that number becomes the “point.”

The shooter will further try and re-roll the dice till the point is rolled again. If the shooter is successful in rolling the point, then it is a win for those who bet the pass line. But if the shooter rolls a 7 instead of the point (known as “seven-out”), the round finishes immediately with the dice being transferred to the next player. That player becomes the new shooter. Then “Don’t Pass Line is opposite to the “Pass Line”.



Pontoon is alike to Blackjack with only a few variations. The object of the games is similar as in blackjack, where the player is trying to achieve a total of 21 or close to 21. And further, beat the dealer’s total. However, in Pontoon, there is no push or standoff. If the game is a tie, Dealer wins on all ties. The dealer initially trades two face-up cards to each player and one card for the dealer of the house. According to the card total of each player, they have an option to either draw more cards or stand. When new cards are drawn by the players, and if the hand total goes over 21 points, they lose the bet and the cards are removed.

When all the players have played out their hands the dealer shall continue to draw cards until a total of 17 points or more, except the dealer shall score a soft 17. The dealer will also stop with any five-card hand irrespective of total points. moreover, the dealer shall compare its hand to each player’s hand and winning players shall be paid on the basis of the ranks.



Baccarat is a simple card game played with 8 decks of cards. Players have an option to choose to bet either on Player or Banker’s hand. The object of the game is to get as close to 9 points. Two cards are drawn to Banker’s hand and Player hand and a third card will be drawn to either/both hands according to the drawing rules. The hand with the sum of cards nearest to 9 wins (Cards 10, J, Q, K count as 0).



3-Card Poker:

3-card poker is played with 1 deck of cards. The player makes an ante and/or pair plus bet. The dealer distributes each player and himself three cards. The player may evaluate his own cards. The dealer’s cards are traded face down. If the player made the ante bet, then that player must either fold or bet. Further, If the player folds, he loses his ante bet. If the player wagers, then he must make an additional bet, equal exactly to his ante bet.


5-Card Poker:

5-Card Poker is played with 1 deck of cards. The player makes an ante bet plus an additional bet that is the bonus bet. Each player and the dealer get five cards. All cards are dealt face down, but one dealer card is exposed. Furthermore, the player may evaluate his own cards but he is prohibited from sharing information. A Player must fold or bet if he wants then he has to put exactly double of his ante money. If player folds he forfeits his cards, antes bet and also side bet.


Financial Highlights:


  • Revenue from operations increased by 19% on a YoY basis it stood at Rs. 204.29 crores as compared to Rs. 171.58 crores in Q4FY18. Total income for Q4FY19 stood at Rs. 213.53 crores as compared to Rs. 179.96 crores.


  • Revenue from gaming operations constitutes 77% i.e. Rs. 198.13 crores of the total revenue generated, it grew by 21% YoY in Q4FY19. The footfalls in hotels jumped 40% to 1, 20,000 in Q4FY19. The footfalls in casino increased by 36% from 3, 17,000 in FY18 to 4, 31,000 in FY19.


  • Revenue from online skill gaming was Rs. 37.22 crores i.e. 14% of the consolidated revenue. Hospitality and other operations revenue grew by 8% YoY it stood at Rs. 23.61 crores i.e. 9% of the consolidated revenue of the company. The hospitality segment incurred an EBITDA loss of Rs. 2.95 crores in Q4FY19.


  • EBITDA for the quarter stood at Rs 87.9 crores as compared to Rs. 67.5 crores in Q4FY18. EBITDA Margin for Q4FY19 stood at 43% against 39.3% YoY. The margins expanded by 370 bps YoY. The increase in the margins was mainly due to the recovery seen in the online gaming segment. The online gaming segment rose from 14% EBITDA margin in Q4FY18 to 24% EBITDA margin in Q4FY19.


  • The Government of Goa has notified the company the revised on-shore and off-shore casinos license fee in Goa. The earlier license fee for the group was Rs. 11 crore, Rs. 10 crores and Rs. 5 crores respectively. Now the revised license fees for on-shore and off-shore is Rs. 30 crores, Rs. 25 crores and Rs. 10 crores accordingly.


  • Net profit in Q4FY19 rose by 25% YoY from Rs. 45.25 crores in Q4FY18 to Rs. 56.72 crores Q4FY19.



Delta Corp– Chances of jackpot for investors increasing
Delta Corp


Delta Corp– Chances of jackpot for investors increasing
Delta Corp – Revenue from different segment.


Risk and Concerns:

  • Changes in Regulation: Gaming segment is highly regulated by the government any changes in the regulations or policies will affect the company


  • Tax rates: Increase in tax rate at an exponential basis can negatively impact the profits of the company.


  • License Cap: at present, the license cap in Goa is of six casinos out of this Delta owns 3 casinos, if the license cap is increased new entry in this business can dilute its revenue.



Equity Right View-

Rail Vikas Nigam Limited



Delta Corp Limited analysis is provided by Equity Right and Equity Right Research Team.

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