LKP Shares has recommended a buy rating on Rolta India with a target price of Rs 110 in its April 10, 2009 research report.
“Given the relaxation in implementation of AS-11, Rolta can opt not to provide for MTM losses during the current fiscal, which will positively impact its bottom line. Resultantly, it might write back Rs 840 million MTM provided during H1FY09. We expect Rolta to grow in top line & bottom line by around 40% this fiscal, thereby making valuations at 3.7x FY09 attractive. Rolta trading at 3.7x FY09E earnings is an attractive investment opportunity, despite concerns relating to outstanding FCCBs to the tune of USD 150 million maturing in June 2012. We recommend ‘BUY’ with a one year target price of Rs 110,” says LKP Shares’ research report.
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