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Delta Corp share price crash 12% to hit 52-week low after co gets another tax notice

Delta Corp Faces Financial Challenges as Tax Troubles Mount

Delta Corp share price: Today, we’re going to talk about a real-life financial situation involving a company called Delta Corp Ltd. It’s a bit complex, but we’ll break it down so you can understand it.

Troubles at Delta Corp: Delta Corp share price

Delta Corp Ltd is a company in the gaming and casino business. Recently, their stock price took a big hit, dropping by 12% to reach its lowest point in a year, which was Rs 122.60.

The trouble began when Delta Corp’s subsidiary, Deltatech Gaming, received a notice from the Directorate General of GST Intelligence in Kolkata. This notice stated that the company owed a substantial amount in taxes, specifically Rs 6,384 crore. This is a significant sum of money.

What’s even more concerning is that this isn’t the first time Delta Corp has received such a notice. In the previous month, they got another notice for Rs 16,822 crore in taxes from the same government agency. These tax demands are related to the period between July 2017 and March 2022.

One of the notices, for Rs 11,140 crore, was directed at Delta Corp itself, while the other, for Rs 5,682 crore, was aimed at three of its subsidiaries—Casino Deltin Denzong, Highstreet Cruises, and Delta Pleasure Cruises.

Stock Market Reaction

The news of these massive tax demands has spooked investors, causing Delta Corp’s stock price to drop even further. Some stock market analysts have weighed in on the situation.

They’ve noted that the stock is currently in a bearish trend and has been oversold on the daily charts. Oversold means that there are more people selling the stock than buying it, which can drive the price down. According to one analyst, the stock may even drop to Rs 80 in the near future.

Another analyst, AR Ramachandran from Tips2trades, suggests that investors should avoid buying Delta Corp’s stock until it breaks through a daily resistance level at Rs 149 on a closing basis. This resistance level is like a barrier that the stock needs to overcome to start going up in price.

Financial Indicators

To understand the company’s financial health, we can look at a few indicators. Right now, Delta Corp’s stock is trading below various moving averages. These moving averages help investors understand the stock’s overall trend.

Additionally, the 14-day relative strength index (RSI) is at 18.84, which is quite low. An RSI below 30 is considered “oversold,” which means the stock might be due for a rebound, but it’s not guaranteed. When the RSI is high (above 70), it’s seen as “overbought,” indicating the stock might be overvalued.

Lastly, the company’s price-to-earnings (P/E) ratio is 15.69, and its price-to-book (P/B) value is 1.64. These are financial metrics that investors use to assess a company’s value. In this case, a P/E ratio of 15.69 suggests that investors are willing to pay 15.69 times the company’s earnings per share for its stock.

Conclusion

In summary, Delta Corp Ltd is facing significant financial challenges due to massive tax demands. These demands have led to a drop in the company’s stock price, and analysts are suggesting caution when considering investing in the company. The stock’s technical indicators also show that it’s under pressure.

It’s essential to understand that this situation is a real-world example of how financial issues can affect a company’s stock and overall health. Companies, like individuals, have to manage their finances carefully to ensure long-term success, and this case serves as a cautionary tale in that regard.

Delta Corp, a gaming and casino company, is facing financial difficulties as their stock price recently plunged by 12% to a one-year low of Rs 122.60. The trouble began when their subsidiary, Deltatech Gaming, received a notice demanding a substantial sum of Rs 6,384 crore in taxes from the Directorate General of GST Intelligence.

This is on top of a previous tax notice for Rs 16,822 crore. The stock has suffered due to these issues, with experts predicting further decline. Technical indicators suggest a bearish trend and oversold conditions. Delta Corp’s financial health is under scrutiny with its low 14-day RSI, trading below moving averages, and specific financial metrics like a P/E ratio of 15.69 and a P/B value of 1.64. This real-world example emphasizes the importance of financial management for both individuals and companies, showcasing how financial troubles can impact a company’s stock and overall stability.

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