If one looks at Singapore with annual visitation of around 9 million annually 2 casinos have clocked around 28000 Crs. in just 2 years of starting its operation. While when we look at Macau China, in 5 years it has managed to clock wopping 1,00,000 crs. . Delta corp has an annual sales from Gaiming and Hospitality of 100crs v.s 11cr in 2009.
Logic is simple if Singapore with 9 cr. population and 9 million visitors can do such a big business, why cant India with 121cr population and 2 million visitors in Goa cant manage to do 10% of the business done in Singapore in next 5 years.
So assuming if Delta indeed does a turnover of 3000 crs. and Net Profit of 900cr annually, we get and EPS of around 45 ( 900/20 ) . Its a unique business and thus should command a high PE,
so let worst case PE be 15 while best case be 40, we can see this stock trading in between 675 - 1800 in next 5 years.
This is a simple BOTE calculations. There are various risks involved. Do you own diligence before buying
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