The Rakesh Jhunjhunwala name brings the optimism in the life of every individual as every one takes him like an icon or semi God atleast in BSE circles. Thus it makes sense to track his secret affair in consumption sector and our detective revealed that he has fallen in love with Delta Corp because it is a play on the consumption sector and there are four new projects opening up in the next three months.
Delta Corp is primarily engaged in the activities of Gaming and Hospitality. It also owns Real Estate in East Africa, Nairobi. Delta Corp is the largest gaming company in India (offering 725 gaming positions) and is the only listed company in the space. In the Gaming and Entertainment space, Delta Corp has three live offshore casinos in Goa and one onshore (land based) casino in Daman. In addition, Delta Corp has an in-principle license to set up an additional casino in Daman. He pointed out that there are very few casinos in India, but in Malaysia and Macau, those companies have done exceedingly well and are very expensive in terms of in terms of price earnings multiples. He expected Delta Corp to also re-rate.
Rakesh Jhunjhunwala has invested Rs. 78 crores in Delta Corp primarily because of its gambling business. The gambling industry has been growing every year as is evident by the increase in Delta Corp‘s visitations and revenues. The Indian gaming and entertainment industry is in its infancy and Delta Corp hopes to capture 75-80% market share in India.
However a word of caution is that in India gambling industry has still not been accepted in the society and is still dependent on the whims and fancies of the local politicians and one ban the whole company may come down like a pack of cards.
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