Share Trading Tips

Rolta India (BSE Code 500366) 52 week high/low Rs 360.00/40.70. Rolta is a specialised IT- based solutions provider and a leader in niche segments like geospatial, engineering design and defence and homeland securiry In Hi FY09 (Rolta’s financial year ends in June), the company’s topline as well as bottomline (before exceptional items) recorded a growth of 17.42 per cent and 45.83 per cent on a YoY basis. The exceptional item includes the forex revaluation loss of Rs 84.01 crore on translation of FCCBs of more than Rs 600 crore,
The company has recently proposed to appoint BNP Paribas Capital (Asia Pacific) as an advisor to explore opportunities effecting buy-back of the FCCBs. It has also utilised the full proceeds of FCCB, other lines of credit and funds from internal accruals to acquire various companies, business divisions, technologies and intellectual property rights during the last six quarters in India and overseas. In December 2008, Rolta acquired Piocon Technologies mc, USA – a provider of Oracle technology-based business intelligence solutions and professional consulting services for the oil and gas industry. In July 2008, Rolta acquired the consulting division of WhittmanHart Consulting, USA — a provider of Oracle’s Hyperion products with a major focus on enterprise performance management. Rolta has strong fundamentals with a order book of 1 .5x of its FY08 revenues providing good earning visibility. Rolta has been able to sustain its margins and unlike other IT companies, almost 55 per cent of its revenue comes from domestic operations, while the exposure to the financial sector is limited to 4 per cent. On December 31, 2008, Rolta’s cash and cash equivalent stood at Rs 252.29 crore that can be used to fuel the company’s future growth plans. At P/BV of 0.67x and a PIE of 3.69x of its trailing 12-month earnings, the counter can be considered for a long-term hold.