Delta Corp.'s shares took a significant hit on Monday, following the partial divestment by Bank of America (NYSE:BAC) (BofA) Securities and Societe Generale (OTC:SCGLY). The two banking giants offloaded their holdings in the open market, with BofA shedding about 1.12% and Societe Generale disposing of 0.5% at INR 128 per share.
The transaction resulted in Delta Corp.'s stock plunging by up to 9%, marking an 8% loss from the previous day's close. This comes amid fiscal challenges for the company and its subsidiary Deltatech Gaming, which have been burdened with numerous Goods and Services Tax (GST) notices over the last month.
Deltatech Gaming was issued a GST shortfall notice of INR 6,384 crore, with a demand for payment clearance inclusive of interest and penalty or face a show cause notice. Delta Corp. also faced financial hurdles as it was slapped with hefty tax arrears of INR 11,140 crore in September.
Delta Corp.'s stock has been under pressure lately, with InvestingPro data showing a six-month price total return of -32.61% and a one-year price total return of -65.56%. It's currently trading near its 52-week low, at just 30.46% of its 52-week high. The company's market cap stands at $26.02 million, according to InvestingPro.
Despite these challenges and an 8% loss in shares, IIFL Securities' market expert Sanjiv Bhasin remains bullish on Delta Corp.'s stock. His optimism may be fueled by some of the company's strengths. According to InvestingPro Tips, Delta Corp. holds more cash than debt on its balance sheet, and it has managed to maintain dividend payments for 20 consecutive years. The company is also a prominent player in the Hotels, Restaurants & Leisure industry.
Investors interested in learning more about these and other insights can find additional InvestingPro Tips at InvestingPro. The platform offers real-time metrics and tips for a wide range of companies, providing valuable insights for those looking to invest in the stock market.
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