Gaming and casino player Delta Corp has cost ace investor Rakesh Junjhunwal and wife Rekha Jhunjhunwala over Rs 100 crore in 2019. Rakesh Jhunjhunwala holds 1.15 crore shares or 4.24 percent stake in the firm, while his wife Rekha Jhunjhunwala owns 85 lakh shares or 3.14 percent stake, as per data available on BSE. Together they own a total of 2 crore shares.

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The total value of their stake at the end of December 2018 quarter stood Rs 507.2 crore (at Rs 253.75 per share as on December 31, 2018). The stock declined over 27 percent since then and is currently trading around Rs 184 per share, reducing the current value of their stake in the company by Rs 138.6 crore to Rs 368.6 crore.

Investors in Delta Corp have lost over Rs 1,800 crore this year in the stock. The market capitalisation of the firm stood at Rs 6,875 crore on December 31, 2018, which has been decreased to Rs 4,993 crore currently.

The declined started in April after the company said the Goa government in the current period had notified revised license fees for onshore and offshore casinos operating in Goa.

Then, it tanked nearly 20 percent in two days in May 2019 after reports that DG GST Intelligence had booked two Goa companies, including Delta Corp for Rs 6,189 crore Goods and Services Tax (GST) evasion.

According to a CNBC-TV18 report on Friday, the two companies evaded GST by camouflaging a mixed supply of services. The companies paid GST by artificially splitting values of services. GST was paid on net revenue of casino instead of Face Value of bet.

However, Delta Corp chief financial officer said the company was in compliance with GST laws and did not evade any GST, the report said.

Delta Corp share has lost 31 percent during the last one year and 27.3 percent since the beginning of this year. In comparison, the Nifty has fallen 3.5 percent during the last one year and risen 1 this year.

In Q1, the company's profit grew only 2.7 percent to Rs 42 crore and operating profit rose only 1.5 percent to Rs 67.7 crore compared to the same period last year.

The slow profit growth was due to the revenue loss from the dry-docking of Deltin Jaqk casino and the restriction on alcohol serving in Goa due to the general elections. The online business' performance was subdued due to high advertising, selling and promotion spend.

However, brokerage Emkay is confident the company's earnings will grow 22 percent in FY20 as casino revenue should recover sharply in the coming quarters. The brokerage expects the momentum to continue in Goa, driven by rising footfalls and improving gross gaming revenue.

Delta Corp is engaged in the entertainment and gaming, real estate, hospitality and aviation segments of the industry. The company operates its gaming and hospitality businesses under the DELTIN brand. It owns approximately three casinos in Goa, including Deltin Royale, Deltin JAQK and Deltin Caravela.

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