DELTACORP : Potential for a High Risk-High Reward trade

Deltacorp is a monopoly business in India. They are the only listed company engaged in the casino (live, electronic and online) gaming industry in India.

The recent rapid sell-off was mainly due to the 28% GST imposed on online gaming, casinos from October 1 by the GST Council.

The announcement was made on July 12th and it's almost 4 weeks since then. The market didn't crash further from the initial levels it crashed to. So there are chances that the market did price in the negative impact that this news is going to have on the scrip.

But still we need to see how the industry acts on this decision, in the coming days and hence further crashes are still on the cards.

The financials are not that attractive and the valuation is also high. But still there are high growth prospects for the sector and the stock in the coming years.

So I'm willing to take this risk and have entered into a position. Further details will be updated underneath.


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