How to make money in a Casino without gamble
Yes, you read it right! In this article, we are about to discuss how we can make money in a Casino. But, in a different approach. We are talking about India's largest and the only listed casino operator DELTA CORP Ltd stock.
About Delta Corp
Delta Corp operates its casinos in Goa and Sikkim under the names Deltin Royale, Deltin JAQK, Deltin Caravela, Deltin Denzong.If you been to Goa, you would be aware of these names. The huge cruises floating on the Arabian sea with bright illuminations attract a lot of tourists from India and other nations as well.
Gambling is considered taboo in a country like India, where making money out of these is almost considered a sin. But in recent years, with an increase in disposable income of the people, the trend is slowly improving.
Financials
Delta Corp has a market capitalization of around 4,000 crores, which is quite undervalued, considering its growth prospects. With a P/E ratio of 34, it is fairly priced and the company has also declared dividends on multiple occasions.
I consider a company worth investing, only where the debt is low and the company has enough cash in hand to meet the near-time requirements. With a debt-to-equity ratio of 0.0, this company is a gem.
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Source: Google Finance.
Shareholding pattern
Promoters hold around 32.77% stake while FIIs hold 19.94% and mutual funds around 5.74%.
Ace Investors like Rakesh Jhunjhunwala and R.K Damani, whom I admire the most, have a holding stake of 7.38% and 1.38%.
Final Views
As the world is pushed to lockdown due to the pandemic, this has impacted this company significantly, but as the world moved digital, even Delta Corp has adapted to the new normal where it operates two websites under Adda52.com, Adda52rummy.com.
The Industry is still in its initial stages and it can be considered a great opportunity for someone who is a value investor. But, regulations by the government play a huge role in such business, if liberalized, there may be many more companies entering the industry, which may dent the profits of Delta Corp.
Disclaimer: The views expressed above are of my personal knowledge and the company may or may not perform in the future as mentioned.