Delta Corp Share Price Declines 18 Percent after GST Demand from Government
Delta Corp share price was down by nearly 18 percent in early trades as Indian government has raised a demand of Rs 17,000 crore in GST from the company, as per reports. The gaming and casino company has been facing tough times for the last few weeks as the Indian government raised GST on casino companies to 28 percent. The sector is facing uncertainty and Delta Corp is the only listed casino operator in India. The sector could see consolidation and only the strong players could come of these turbulent times.
The GST demand of Rs 16800 crore is for the period between July 2017 and March 2022. Delta Corp informed the exchanges about the GST demand on Friday.
Delta Corp stock is now at 29 months low and still is not a good stock to enter. Investors should wait for clarity on the issues related to GST. Additionally, the impact of higher GST on casino companies will be clear after two quarterly results. So, it would be prudent to wait for some time before buying Delta Corp.
In today’s session, Delta Corp stock touched intraday low of Rs 140.35 and was trading at Rs 144 during publication of this report. The stock is surely suffering and we might see further selling in this counter. Investors and short term traders should stay away from the counter till the time clarity emerges on important issues.
The company reported a strong quarter but the positive results were overshadowed by Indian government’s GST decision. After this decision, no market analyst or research house has suggested any CALL for the stock. Only short term, trading calls have been given.
Market participants are looking forward to the impact of GST decision on Delta Corp’s performance and this would be clear in 6-9 months (when the company would have declared results for upcoming three quarters).
All trades should be conducted with strict Stop Loss. Markets can have unpredicted moves based on news and trends in the global markets. Stop Loss is an important strategy to reduce the risk in case the stock doesn’t move as per the call given by market experts.