Tuesday, January 15, 2013

Rolta Ltd: Buy
Since most of the shares of Software Companies are moving up, I think  this share is also expected to move up in the coming days. Also, now we can become a little over-weight on the IT sector. Rolta India Ltd's H1FY13, EPS is around Rs.8.70, which shows that the scrip is highly undervalued. Even its FY12, EPS is Rs.20.30, indicating that it is a sure shot buy. It has a huge reserve of Rs.2313.83 Cr against a  market cap of only Rs.1085.74 Cr. Even its FY12 revenues of Rs.1503.91 is greater than its market cap. Buy for a target of Rs.82, in the short term.
According to my sources, its Q3FY13, results will be good. Rolta International, Inc, a subsidiary of Rolta India Ltd, recently announced that it was awarded a $31 M+ contract to be executed over the next two years to provide consulting, systems integration and software services to a three-service municipal utility, Memphis Light Gas and Water (MLGW).  This is a unique order the company implementing, not only Oracle ERP but also geospatial information system (GIS) and Human Resources, Hyperion and Business Intelligence. The company expects a margin of 30-35 % on such a large order. The order book position of the company is also getting strengthened, which is now around Rs.2,500 crore. The company is expected to come up with Q3FY13 either at the end of this month or in the 1st week of February. For more on Rolta India Ltd, please CLICK HERE.