ULJK puts 'Buy' call on Rolta India
According to the brokerage report, Rolta India enjoys 90% market share in the Indian Engineering Design Automation (EDA)
By ET Online |
MUMBAI: ULJK Securities has initiated coverage on Rolta India with a ���Buy��� recommendation expecting the stock to touch Rs 190. ���At the CMP of Rs 90, the stock discounts FY2009E & FY2010E earnings at 7.34x & 5.70x respectively. We believe that the company could benefit from the joint venture and improve its margins,��� the brokerage says.
According to the brokerage report, Rolta India enjoys 90% market share in the Indian Engineering Design Automation (EDA) market and 95% market share in providing geospatial-based operations and intelligence solutions for the Indian armed forces. Overall, Rolta has a 70% share of the Indian GIS market.
The company is showing a higher growth rate (120%) in the e-solutions segment in the FY-2008. This segment is also improving its share in the revenues, which have increased from 9% to 18% in the last three years. But, the share of the GIS/EDA businesses in the revenues is getting lower from 90% to 80% in the last four years.
In its outlook on the company, the report adds, ���Rolta India is a mid-tier geospatial and engineering-focused company with revenues of Rs 10.6 billion with a professional work force of nearly 5000 all over the world. The business model of Rolta India is very unique in nature and provides turnkey solutions for engineering projects. As the business concentrates in the same segment with 3 different verticals, the company could provide end-to-end solutions for infrastructure projects. We expect the growth will most likely be driven by capturing the market in the GIS/EDA space for infrastructure space.���
According to the brokerage report, Rolta India enjoys 90% market share in the Indian Engineering Design Automation (EDA) market and 95% market share in providing geospatial-based operations and intelligence solutions for the Indian armed forces. Overall, Rolta has a 70% share of the Indian GIS market.
The company is showing a higher growth rate (120%) in the e-solutions segment in the FY-2008. This segment is also improving its share in the revenues, which have increased from 9% to 18% in the last three years. But, the share of the GIS/EDA businesses in the revenues is getting lower from 90% to 80% in the last four years.
In its outlook on the company, the report adds, ���Rolta India is a mid-tier geospatial and engineering-focused company with revenues of Rs 10.6 billion with a professional work force of nearly 5000 all over the world. The business model of Rolta India is very unique in nature and provides turnkey solutions for engineering projects. As the business concentrates in the same segment with 3 different verticals, the company could provide end-to-end solutions for infrastructure projects. We expect the growth will most likely be driven by capturing the market in the GIS/EDA space for infrastructure space.���
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