Motilal Oswal's research report on Delta Corp
DELTA reported overall revenue of INR1,286m (est. of INR1,180m) v/s INR1,087m in 1QFY17, marking an increase of 18.4%, driven by healthy growth of 20% in gaming. EBITDA margin shrunk 300bp YoY to 35.2% (est. of 38.1%) in 1QFY18 , and EBITDA stood at INR453m (est. of INR450m) v/s INR415m in 1QFY17. Consequently, adj. PAT came in at INR211m ( below est. of INR255m) , as against INR170m in 1QFY17, because of higher tax -rate of 36% v/s 29% in 1QFY17.
Outlook
We expect the company to deliver sales/PAT CAGR of 38%/69% over FY17- 19E , and value the stock at 30x FY19E EPS to arrive at a TP of INR237. Maintain Buy.
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