Monday, 24 November 2008

Buy Rolta India, target of Rs 220: Karvy

Karvy Stock Broking has recommended a buy rating on Rolta India with a target of Rs 220 in its November 24, 2008 research report. "We do not expect the margins take any beating and are likely to stay at the current levels of 36%. Even after factoring M-to-M losses of Rs 900 million (as a result of FCCB) in FY09, the profits at the net level would modestly go down by 2.1%."

"The company is contemplating to reduce its foreign currency loans, and if it does reduces the same the company would be entitled reverse the M-to-M losses in FY10, which would give big boost to its earnings, even if the company writes off goodwill over the next 5 years. We have an BUY rating on the stock with a price target of Rs 220," says Karvy Stock Broking's research report.

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Source: Moneycontrol

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