Delta Corp's Share Price Plummets: Investor Actions to Consider
Delta Corp's share price experienced a significant drop of nearly 28% on Wednesday, marking its largest single-day decline ever.
Delta Corp's share price experienced a significant drop of nearly 28% on Wednesday, marking its largest single-day decline ever. This decline was triggered by the GST Council's decision to impose a uniform 28% GST on online gaming, casinos, and horse racing.
The stock opened with a 10% lower circuit at ₹222.15 per share on the BSE and continued to decline, reaching a low of ₹178.20 per share during the day. Delta Corp's shares are currently slightly above their 52-week low of ₹172.30 per share, which was recorded on July 12, 2022.
Analysts believe that despite the stock's decline, it could present a buying opportunity due to Delta Corp's pricing power and long-term business prospects. As the only listed player in the casino industry, the company has the ability to pass on the increased costs to customers. It is expected that the business will continue to grow, despite the high GST rates.
While the GST Council's decision initially impacted Delta Corp's share price, experts suggest that the company may pass on the increased costs to consumers in the next quarter, minimizing the impact on its operational viability.
From a technical standpoint, Delta Corp shares have reached a critical support level at ₹175, which holds historical significance. If the stock manages to stay above this support level, it may enter a consolidation phase between the range of ₹200 to ₹240 without a significant directional bias. However, a close below ₹175 could result in further weakness and potentially push the stock toward the ₹140 level.
It's important to note that the information provided in this article represents the views of individual analysts and brokerage firms and does not necessarily reflect the views of Mint. It is advisable for investors to consult certified experts before making any investment decisions.
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