NSE Symbol: DELTACORP | BSE Code: 532848
Delta Corp Ltd is an actively growing Indian company serving in the entertainment & gaming, real estate, hospitality and aviation segments of the industry. Delta Corp Ltd is a diverse company. The company along with its subsidiaries presently engages in real estate business and consultancy services, entertainment, chartered aviation business, gaming business, and hospitality industry.
Delta Corp Ltd was consolidated as a private company with the name Creole Holdings Company Pvt Ltd on November 5, 1990. The company turned into a deemed public company because of the strategic acquisition of shares of Finolex group and its name was changed to Creole Holdings Company Ltd in June 1992. In the year 2003-04, the Finolex Cables Ltd divested their shareholding in the company and the company desisted from being a subsidiary of Finolex Cables Ltd.
In September 2003, the company was transformed into a private limited company.
On September 15, 2006, it was converted to a public limited company and adopted a new set of MOA and AOA.
In the Financial year 2006-07, according to the Scheme of Amalgamation, Arrow Webtex Ltd merged with Delta Corp since 2005. According to the scheme, the name of the company was changed from Creole Holdings Company Ltd to Arrow Webtex Ltd.
In November 2006, the company concluded the expansion plan at the Narrow Woven Fabric division. In the year 2007-08, the company procured the equity shares of AAA Aviation Pvt Ltd, Jayem Realty Solutions Pvt Ltd, AAA Real Land Developers Pvt Ltd, Delta Pan Africa Ltd, J M Real Estate Pvt Ltd and Richtime Realty Pvt Ltd and these companies became subsidiaries of the company. Moreover, the company divested roughly 10,000 equity shares in Aryanish Finance and Investments Pvt Ltd, and the company ceased to remain a subsidiary company of Delta Corp. Highstreet Cruises and Entertainment, which is a subsidiary of Delta Corp, acquired 100% equity of Victor Hotels and Motels Ltd in December 2007,. The company, through their subsidiaries, began new projects and business ventures in gaming, entertainment, aviation and hospitality.
In January 2008, the company started a joint venture with Reliance Industries Ltd, and it also established the company named Delta Corp East Africa Ltd for expanding real estate projects in East Africa. They consolidated AAA Aviation Pvt Ltd for handling the aviation business and provide chartered flights to the high-end customers.
Highstreet Cruises and Entertainment Pvt Ltd, the company's subsidiary, which handled the operations related to the gaming business established a 15,000 square feet gaming Casino Vessel known as the Casino Royale, located in Goa. It is India's largest indigenously built-casino which provides live gaming and entertainment vessel. Besides, they installed an offshore casino vessel which was roughly 5000 square feet in size. This Casino was known as the Kings Casino located in Goa.
In the year 2008-09, the company de-merged their textile business into a different company known as Arrow Textiles Ltd. Additionally, they changed company's name from Arrow Webtex Ltd to Delta Corp Ltd in 2008. They initiated flight-chartering services in the same year. The company obtained 100% equity shares in the Mundus Hospitality Pvt Ltd for a total compensation of 77.52 lakh INR. Additionally, they procured 100% equity interest in Delta Holding Inc located in the USA for a total remuneration of Rs 428.20 lakh.
The company divested their shares in JM Realty Management Pvt. Ltd and AAA Real Land Developers Private Limited, thereby these companies ceased to be the subsidiaries of Delta Corp. Moreover, they divested approximately 22,000 equity shares in Pavarotti Finance & Investment Pvt Ltd, thereby decreasing their holding interest with the company from 43% to 21%.
In November 2008, the company initiated their operations in Casino Royale, which is India's largest entertainment vessel.
Dacapo Brokerage India Pvt Ltd obtained 55.87% interest shares in the company in March 2009. The joint venture company of Delta Corp Ltd, Delta Corp East Africa Ltd had a tie-up with the Team Management Services (TMS) Consulting Group Ltd, which is a multidisciplinary firm which specializes in providing consultancy services in all the major sectors. The company has been operating in the hospitality segment through their subsidiary, Delta Hospitality Pvt Ltd. This subsidiary holds roughly 35% equity in Advani Hotels and Resorts. Additionally, the company started a joint venture with Peninsula Land Ltd for building 3 and 4-star business hotels in various urban locations in Western and Southern India.
The company acquired a riverine land of 810.85 square meters at Betim, Brazil and 2,700 square meters at Reis Magos village in Goa to develop jetties, which could provide services to the casinos.
Delta Corp East Africa Ltd has been focused on developing two commercial and profitable projects and they intend to initiate the development work on the remaining projects shortly.
In Q1FY2009-10, J M Real Estate Pvt Ltd and Jayem Realty Solutions Pvt Ltd, ceased to be the subsidiaries of Delta Corps Ltd and Pavarotti Finance and Investment ceased to be an associate of the company.
Due to the recent hike in licence fees, Delta Corp has managed to capture the market share from small land-based casinos in Goa. The Delta Corp Goa Casino earned a profit of 200 crores in the last quarter. In the second quarter of the FY 2018-19, Delta Corp registered a profit growth of 8%. As an investor, you must weigh in the pros and cons of investing in a gaming company like Delta Corp.
Due to the overall reduction in debt for the company, the company has now virtually turned debt-free. The company is expected to perform even better in the upcoming quarter. However, pitfalls of investing in Delta Corp Ltd are:
Delta corp shares are trading at 3.57 times the book value
Stake of the promoters in the company has declined
The promoter’s holding in the company has also declined to 32.7%
For the last three years, the company has shown a low rate of return on equity (8.17%)
The Delta Corp share price has been consistent in the market for the year 2018. The peak value of Delta Corp share was â‚¹387.7 which was reached in the month of January and the lowest value that the shares reached was â‚¹204 in July.