Motilal Oswal is bullish on Delta Corp has recommended buy rating on the stock with a target price of Rs 327 in its research report dated April 24, 2018.
Broker Research
Motilal Oswal's research report on Delta Corp
Revenue rose 59% YoY (est. of +42%) to INR1,716m in 4QFY18, led by higher gaming revenues. EBITDA margin expanded 750bp to 39.3% (est. of 45.7%) on a YoY basis, but shrunk 310bp on a QoQ basis due to a sequential contraction in the online gaming margin to 14% from 40%. EBIDTA stood at INR675m (est. of INR702m). Adj. PAT rose 2.8% YoY to INR437m (est. of INR440m).
Outlook
We, thus, maintain our overall revenue estimate, but cut overall PAT estimate by 3%/2% for FY19/FY20. We expect the company to deliver sales/PAT CAGR of 26%/33% over FY18-20 and value the stock at 32x FY20E EPS to arrive at a target price of INR327. Maintain Buy.For all recommendations report, click here
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