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Rakesh Jhunjhunwala portfolio stock falls 30% from 52-week high

Rakesh Jhunjhunwala portfolio: Delta Corp share is falling along with the market however the fall is sharp as it is a high beta stock. (MINT)

Speaking on the reason for Delta Corp share price tumble, Ravi Singhal, Vice Chairman at GCL Securities said, "Fear of next wave of Covid-19 pandemic after lockdown in China has grown further. Apart from this, some negative sentiments have erupted from recent Delta Corp news, especially National Green Tribunal asking Delta Corp's subsidiary to stop the operations of the casino 'Deltin Caravela’ until it has obtained clearance under the Coastal Regulation Zone Notification dated January 6, 2011."

However, Ravi Singhal of GCL Securities maintained that Delta Corp share is a quality stock and current fall should be seen as a buying opportunity at around 200 to 220 apiece range.

Echoing with Ravi Singhal's views, Santosh Meena, Head of Research at Swastika Investmart Ltd said, "The counter is falling along with the market however the fall is sharp as it is a high beta stock. On an immediate basis, 220 to 200 is an immediate and important support zone where we can expect some recovery while if it slips below 200 level then 164 will be the next support level. On the upside, 200-DMA of 260 will act as an immediate resistance at any pullback while 300 will be a major hurdle."

In recent exchange communication, Delta Corp had informed Indian exchanges about NGT objection citing, "Please note that High street Cruises and Entertainment Private Limited (“HCEPL"), a subsidiary of the Company has been directed by the National Green Tribunal to stop the operations of the casino 'Deltin Caravela’ (now known as King Casino) until it has obtained clearance under the Coastal Regulation Zone Notification dated January 6, 2011 (“CRZ Notification"). Deltin Caravela (now known as King Casino) is one of the four offshore casinos operated by the Company and its subsidiaries and the revenue from the said casino constituted approx. 5 % of the consolidated revenue of the Company for the Financial Year 2021 - 2022. Based on legal advice, the Company believes that HCEPL is not in violation of the CRZ Notification and HCEPL is pursuing legal remedies to challenge the order of the National Green Tribunal."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.