Rakesh Jhunjhunwala Portfolio Stock Tanks 30% From 52-Week High

Delta Corp shares are one of Rakesh Jhunjhunwala’s portfolio stocks that have fallen dramatically in the current sell-off in the Indian stock market. Delta Corp’s stock has dropped from a 52-week high of 339.70 to 223 per share on the NSE, a drop of more than 30% in less than a month.

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According to stock market specialists, recent unfavourable Delta Corp news and weakness in the secondary market following China’s lockdown caused a sell-off in this Rakesh Jhunjhunwala portfolio stock, which is projected to continue in the short term.

Ravi Singhal, Vice Chairman at GCL Securities, said why Delta Corp’s stock price has dropped “Fears of a new wave of Covid-19 epidemic following China’s shutdown have increased.

Apart from that, recent Delta Corp news has sparked some unfavourable reactions, with the National Green Tribunal ordering Delta Corp’s subsidiary to halt activities of the casino ‘Deltin Caravela’ until it receives approval under the Coastal Regulation Zone Notification of January 6, 2011.”

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However, Ravi Singhal of GCL Securities believes that Delta Corp is a high-quality stock, and that the present decline should be viewed as a buying opportunity between $200 and $220 per share.

Santosh Meena, Head of Research at Swastika Investmart Ltd, echoed Ravi Singhal’s sentiments, saying, “Because it is a high beta company, the counter is dropping in lockstep with the market. On a short-term perspective, 220 to 200 is an important support zone where we can expect some rebound, however if it falls below 200, the next support level will be 164. On the upside, upon any reversal, the 200-DMA of 260 would operate as immediate resistance, while 300 will be a substantial obstacle.”

Delta Corp informed Indian exchanges about the NGT objection in a recent exchange communication, citing, “Please be advised that the National Green Tribunal has ordered High Street Cruises and Entertainment Private Limited (“HCEPL”), a subsidiary of the Company, to halt operations of the casino “Deltin Caravela” (now known as King Casino) until clearance under the Coastal Regulation Zone Notification dated January 6, 2011 (“CRZ Notification”).

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Deltin Caravela (currently known as King Casino) is one of the four offshore casinos managed by the Company and its subsidiaries, and revenue from the casino accounted for about 5% of the Company’s consolidated revenue in Fiscal Year 2021-2022. According to legal advice, HCEPL is not in breach of the CRZ Notification, and HCEPL is exploring legal remedies to overturn the National Green Tribunal’s judgement.”

Disclaimer :- The views and recommendations made above are those of individual analysts or broking companies, and not of Ours.
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