Stock market veteran Rakesh Jhunjhunwala is known for his successful investments. But the stock market crash in the last few months has also resulted in a major fall in the stocks in his portfolio. Now the name of Delta Corp, which operates casinos in Goa, has also been included in this list. Talking about the last one month, the shares of Delta Corp have fallen by up to 20 percent.
Rakesh Jhunjhunwala continuously reducing stake in the company: According to the Economic Times report, Rakesh Jhunjhunwala sold 2.5 million shares of Delta Corp between May 27 and May 31. Now their stake has come down from 7.5 per cent to 6.2 per cent. Earlier in 2016, Jhunjhunwala’s stake in the company was 10 per cent. After this news, the stock of DeltaCorp fell up to 7 per cent in intraday, although the stock later closed with a fall of 2.7 per cent.
Loss due to lockdown: The company’s casinos were closed for several months in 2020 and 21 due to the lockdown and restrictions on travel during the corona virus, due to which the company suffered a big loss. In 2020, after the lockdown in March, the company’s valuation had come down by one-third per cent. Since then the company has been struggling relentlessly. In the March quarter results also, the company’s profit fell by 17 percent to Rs 48 crore.
Big decline in Delta Corp’s earnings: Along with the profits of Delta Corp, there is a big decline in earnings. According to the December quarter results, the company’s casino business reported a 16 per cent decline in revenue, while the hospitality division reported a 25 per cent decline and online gaming revenue declined 19 per cent.
Government preparing to levy 28 percent tax on casinos and online gaming: According to the report, the Indian government is going to impose 28 percent GST on casinos and online gaming. At present, both these categories attract 18% GST. This will result in huge loss of revenue to companies like Delta Corp, due to which big investors as well as small investors are staying away from this stock.