Rolta India

Rolta India was on a roll yesterday on the bourses. Closing in the green, the market was enthused with its agreement with Hitachi, which the company said, would help broaden the scope of its solutions and leverage Hitachi's world-wide presence to extend its market reach for mutual benefit of both companies. And a few weeks ago, the company’s consortium, along with that of Bharat Electronics was selected by the ministry of defence for battlefield management system (BMS) project. This project is worth over Rs.50,000 crore.

On the financial front, the company had a stable Q3FY15 with consolidated revenue rising 27% (YoY) at Rs.967 crore and net profit grew 3% at Rs.76 crore. EBITDA for the quarter was at Rs.345 crore, up 21%.

The company is doing well in the defense space and so is its geospatial and Engineering Information Systems unit and Business Intelligence and analytics solutions.The company has gone through a period of transition – from being a purely service oriented company to an Intellectual Property (IP) -driven product and solutions company and that is most certainly paying off in terms of better earnings for Rolta. Poised well to now take advantage of indigenizing India’s defence needs, this is a stock to watch out for.