DELTA CORP LTD - Quantamental Equity Research Report

Quantamental Equity Research on DELTA CORP LTD | Release: 12 Jan 2019 23:29:14 UTC+05:30 | Reporting Currency: INR | Trading Currency: INR | Exchange:NSE/BSE NSE CODE:DELTACORP and BSE CODE:532848
Last Close:  INR 259
Fair Value:  INR 87.9
Est. Price by Mar 19:  INR 310.5
Market Capitalization (INR Crs):  7017.30
Industry:  Misc.Commercial Services
Rating:  BUY
Upside:  20%
Company Profile
Delta Corp along with its subsidiaries currently operates in Goa, Daman, Gurgaon and Sikkim in the Gaming, Hospitality and Online Skill Gaming Segment.
Growth Per Share
Particulars 1-Year 3-Year 5-Year  
Revenue % 34% 62% 29%  
EBIT % 78% 594% 138%  
Earnings % 111% -783% 430%  
Book Value %  83% 120% 118%  
Stock Total Return %  57% 227% 356%  
Share holding pattern
Particulars %age   
(A) Promoter & Promoter Group 32.77  
(B) FII/FPI 23.20  
(C) DII/Insurance Companies 3.02  
(D) Public holding < 2 lakhs of cap. 14.64  
(E) Others 26.37  
Grand Total 100.00  
Fundamentals (Historical and Estimated)
Particulars Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18  Mar-19 E   Mar-20 E   Mar-21 E   Mar-22 E   Mar-23 E   
Price 38 90 66 61 100 85 80 177 276 311 351 388 419 443  
Return on Equity 5% 29% 7% 4% 5% -3% 5% 8% 9% 11% 11% 11% 11% 10%  
Price to Earning  52.0 10.9 29.6 46.8 64.7 -85.8 48.4 55.5 47.6 43.1 43.1 43.1 43.1 43.1  
EVTI 5.1 4.8 4.8 3.9 4.2 7.1 5.2 9.1 10.9 9.5 8.6 8.0 7.6 7.5  
EVTIFM 52.0 10.9 29.6 46.8 64.7 -85.8 48.4 55.5 47.6 43.1 43.1 43.1 43.1 43.1  
Price to Book Value 2.5 3.1 2.0 1.8 2.9 2.6 2.2 4.4 4.4 4.6 4.7 4.7 4.6 4.5  
Debt to Equity  1.1 0.3 0.6 0.6 0.5 0.4 0.3 0.2 0.0 0.1 0.2 0.3 0.2 0.1  
Dividend Yield 1% 0% 1% 0% 0% 3% 0% 0% 0% 0% 0% 0% 0% 0%  
Cash Flow to Firm 1% -4% -22% 0% 9% 1% 6% 2% 0% -2% 0% 1% 3% 6%  
Detailed Estimates
Title Mar-18 Mar-19 E Mar-20 E Mar-21 E Mar-22 E Mar-23 E  
Sales          607.66          828.33       1,064.28       1,284.14       1,448.87       1,521.32  
EBITDA          275.97          345.17          443.50          535.11          603.76          633.95  
EBIT          238.83          294.55          376.58          451.89          506.77          528.52  
PBT          228.45          294.14          332.26          367.22          396.55          419.43  
NPAT          155.55          195.15          220.44          243.64          263.10          278.28  
Price to Earning             47.56            43.11            43.11            43.11            43.11            43.11  
Price to Book Value              4.40              4.56              4.68              4.70              4.61              4.46  
Debt to Equity               0.00              0.13              0.23              0.27              0.25              0.10  
Return on Equity              0.09              0.11              0.11              0.11              0.11              0.10  
Enterprise Value to Total Income (EVTI)            10.95              9.52              8.60              7.98              7.62              7.46  
Enterprise Value to Total Income to Firm Margin(EVTIFM)            52.49            51.86            47.03            43.88            42.18            41.56  
Price or Est. Share Prices          276.48          310.50          350.75          387.70          418.70          442.90  
DISCOUNTED CASH FLOW
Title Mar-19 E Mar-20 E Mar-21 E Mar-22 E Mar-23 E  
PBT          294.14          332.26          367.22          396.55          419.43  
Interest              0.41            44.32            84.67          110.22          109.09  
Depreciation            50.63            66.92            83.23            96.99          105.43  
Cash Flow Before Tax          345.17          443.50          535.11          603.76          633.95  
Tax Rate            33.99            33.99            33.99            33.99            33.99  
Cash Flow After Tax          227.85          292.75          353.23          398.54          418.47  
Terminal Cash Flow                                                                                      -         4,920.48  
Total Cash Flow          227.85          292.75          353.23          398.54       5,338.95  
Present Value of Cash Flow       2,652.24  
Debt          270.80  
Value of Equity       2,381.44  
Fair Value Per Share            87.90  
Equity            7,017
Debt                   2
Beta Take from Reuters 2.13
Risk Free Rate Prevailing Yield in India 7%
Market Risk Premium Assuming 8.82% premium for Equity Investments 7%
Interest Paid                 10
Tax Benefit                   3
Interest Net of Tax                   7
Debt                   2
Cost of Debt 0%
Cost of Equity 23%
Debt Weight 0%
Equity Weight 100%
WACC 23%
Cash Flow of Mar-23 E          418.47
Growth 11.4%
Present Value of Terminal Cashflow       4,920.48
Peer Comparision
# Name CMP Rs. Mar Cap Rs.Cr.  B.V. Rs. Annualized ROE % ROCE % Latest EVTI Latest EVTIFM CMP / BV P/E Debt / Eq Div Yld % Growth Rate R % SGR % Ann Total Income Unpledged Prom Hold % PQEIOI QoQ Sales % Qtr Sales Var % QoQ Profits % Qtr Profit Var % Graham's Number Rs.
   1  Zee Entertainmen           451.05          43,322            84.92            25.43            26.03              5.12            30.60              5.31            32.86              0.20              0.64            20.65            25.55            8,140            16.95               132            11.50            24.89            18.47           -26.02          162.03
   2  Sun TV Network           588.90          23,208          131.02            38.12            37.51              6.31            16.33              4.49            17.62                  -                1.70            24.38            97.77            3,247            72.19                 80           -33.10            10.90           -14.13            23.41          313.83
   3  PVR        1,644.95            7,688          244.66            15.32            15.05              2.96            46.27              6.72            54.82              0.77              0.12            14.17            14.11            2,859            20.25               286              1.76            27.58           -36.68            29.24          406.45
   4  Dish TV             40.00            7,365            36.85              1.91              5.35              1.52            20.15              1.09          677.57              0.47                  -                1.91              1.59            6,436              9.82               681             -3.70          112.98             -8.54          257.74                  -  
   5  Delta Corp           259.00            7,017            67.53            15.09            15.30              7.66            34.73              3.84            37.76                  -                0.38            12.49            14.07               845            30.82               156              2.22            26.91              5.05            12.94          102.76
   6  TV18 Broadcast             37.95            6,506            19.74              2.52              0.44              1.44            86.48              1.92          376.29              0.30                  -                2.52              1.45            4,838            60.40            1,160            10.12          427.36         -233.73          121.65              6.66

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