ShareTipsInfo.com presents research on Rolta India:
Company overview:
The Company was incorporated on 27th, June, 1989 at Mumbai, and obtained the Certificate of Commencement of Business on 5th July. Rolta India Limited (ROLTA) has been promoted by Shri K.K. Singh a technocrat and businessman who has over two decades of experience in business. The Company is engaged in Distribution of CAD/CAM systems, manufacture of engineering workstations and net work servers, and export of software package.
It has subsidiary in USA, Canada, UK, Germany, Netherland, Saudi Arabia and Middle East.
Rolta India clients in India includes Ministry of Defense, Police, MTNL, ONGC, BSNL etc.
Global customer includes Verizon, Bell Canada, Saudi Telecom, Bahrain Telecom, British Telecom and Hong Kong Telecom.
Company quality standard is benchmarked to world class level with certification such as BS15000, BS7799, and ISO-9001:2000 and SEI CMM level 5.
Products & services:
Company's operation are structured into 3 strategic business group, viz Geo-Engineering, Engineering Design Automation and E Solution. Rolta has pioneered CAD/CAM/GIS solution in India. Rolta enjoys more than 2/3 share of the Geospatial market i.e. application like photogrammetric Mapping, Aerial Triangulation, Digital Terrain Modeling, Orthophoto creation, Image Interpretation etc.
Investment logic:
- 42% decline in the price does not justify the valuation of the company.
- Management is confident of achieving the 10% growth in revenue even in worst case scenario.
- Rolta has announced the Buyback of FCCB worth $150 mn in part or in full. This could be near term trigger to the stock.
- The company has order book of Rs 15918 mn.
SHAREHOLDING PATTERN:
|
|
|
NO.OF SHARES |
% OF TOTAL |
|
PROMOTER |
64779740 |
|
40.25% |
|
|
INSTITUTION |
61397844 |
|
38.15% |
|
|
GENERAL PUBLIC |
34757169 |
|
21.60% |
|
|
GRAND TOTAL |
160934753 |
|
100.00% |
|
FINANCIAL:
|
|
|
30/06/05 |
30/06/06 |
30/06/07 |
30/06/08 |
|
TOTAL INCOME |
356.31 |
463.8 |
607.67 |
861.41 |
|
EXPENDITURE |
-188.82 |
-223.62 |
-303.41 |
-420.48 |
|
OPERATING PROFIT |
167.49 |
240.18 |
304.26 |
440.93 |
|
DEPRECIATION |
-44.94 |
-72.22 |
-100.51 |
-135.39 |
|
PBIT |
|
122.55 |
167.96 |
203.75 |
305.54 |
|
INTEREST |
|
-10.85 |
-14.04 |
0 |
0 |
|
PBT |
|
111.7 |
153.92 |
203.75 |
305.54 |
|
TAX |
|
-8.34 |
-14.51 |
-21.49 |
-42.96 |
|
PAT |
|
103.36 |
139.41 |
182.26 |
262.58 |
CHANGE IN TOTAL INCOME: CAGR IN TOTAL INCOME IS 34.21%.
CHANGE IN OPERATING INCOME: CAGR IN OPERATING INCOME IS 38.07%
CHANGE IN NET PROFIT: CAGR IN NET PROFIT IS
RATIOS:
|
|
|
30/06/05 |
30/06/06 |
30/06/07 |
30/06/08 |
|
EPS |
|
6.422668 |
8.662773 |
11.32542 |
16.31641 |
|
OPM |
|
47.00682 |
51.78525 |
50.06994 |
51.18701 |
|
NPM |
|
29.00845 |
30.05821 |
29.99325 |
30.48258 |
|
INTEREST COVER |
11.29493 |
11.96296 |
NO INTEREST |
Key highlights:
- EPS consistently increased over the period at rate 34.21% to Rs16.3.
- OPM increased over the period from 47 percentage points to 51.18 percentage points.
- NPM increased consistently from 29 percentage points to30.48 percentage points.
- Company was free in FY2007 and FY2008.
COMPARISION OF Q3 2009 WITH Q3 2008:
|
|
|
31/12/07 |
% CHANGE |
31/12/08 |
|
TOTAL INCOME |
222.22 |
5.07% |
|
234.9 |
|
EXPENDITURE |
-111.98 |
|
|
-101.1 |
|
OPERATING PROFIT |
110.24 |
21.37% |
|
133.8 |
|
DEPRECIATION |
-33.22 |
|
|
-40.13 |
|
PBIT |
|
77.02 |
|
|
93.67 |
|
INTEREST |
|
0 |
|
|
-1.14 |
|
PBT |
|
77.02 |
|
|
92.53 |
|
TAX |
|
-9 |
|
|
-9.8 |
|
EXTRA ORD ITEM |
0 |
|
|
-22.66 |
|
PAT |
|
68.02 |
-11.68% |
|
60.07 |
Key highlights:
- TOTAL INCOME ROSE BY 5.07%.
- OPERATING INCOME UP BY 21.37%.
- NET PROFIT DECLINED BY 11.67% DUE TO INCREASE IN EXTAR ORDINARY ITEMS.
Valuation:
Company is trading at 3.3x to trailing twelve month earning, at this price company seems to be value buying. We value the company at 5.5 xs to the trailing twelve month earning. This gives us the price Rs88 per share. The valuation the company is seeing right now is unwarranted.
Conclusion:
Value buyer could accumulate this stock as it has good upward potential.
