BSE:500366

Stock Analysis Report

Executive Summary

Rolta India Limited, together with its subsidiaries, provides various information technology (IT) solutions and services in India and internationally.

Risk Analysis

Earnings have declined by -88.26% per year over past 5 years

Does not have a meaningful market cap (₹708M)

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months



Snowflake Analysis

Imperfect balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has Rolta India's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 500366's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.0%

500366

-0.2%

IN IT

-0.3%

IN Market


1 Year Return

-29.4%

500366

10.5%

IN IT

9.9%

IN Market

Return vs Industry: 500366 underperformed the Indian IT industry which returned 13.6% over the past year.

Return vs Market: 500366 underperformed the Indian Market which returned 6.7% over the past year.


Shareholder returns

500366IndustryMarket
7 Day1.0%-0.2%-0.3%
30 Day-3.9%2.3%2.6%
90 Day-18.3%7.2%5.9%
1 Year-29.4%-29.4%13.5%10.5%11.9%9.9%
3 Year-93.7%-93.7%77.8%67.3%30.2%23.3%
5 Year-96.1%-96.2%66.9%51.5%37.1%24.8%

Price Volatility Vs. Market

How volatile is Rolta India's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Rolta India undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Rolta India is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Rolta India has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of 500366’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Rolta India regulatory filings.
  • Explore potentially undervalued companies in the Software industry.

Future Growth

How is Rolta India forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.1%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Rolta India has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Rolta India performed over the past 5 years?

-88.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500366 is currently unprofitable.

Growing Profit Margin: 500366 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 500366 is unprofitable, and losses have increased over the past 5 years at a rate of -88.3% per year.

Accelerating Growth: Unable to compare 500366's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 500366 is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (6.6%).


Return on Equity

High ROE: 500366's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Rolta India's financial position?


Financial Position Analysis

Short Term Liabilities: 500366 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: 500366 has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: 500366 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: 500366's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

Inventory Level: 500366 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500366 has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 500366 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: 500366 has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 70% each year


Next Steps

Dividend

What is Rolta India's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.5%markettop25%2.3%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 500366's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 500366's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 500366's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 500366's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 500366 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 500366's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of Rolta India's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Kamal Singh (68yo)

0yrs

Tenure

0

Mr. Kamal K. Singh, BE serves as Chairman and Chief Executive Officer at Piocon Technologies, Inc. Mr. Singh serves as Chief Executive Officer of Rolta India Limited and Rolta International, Inc. Mr. Singh ...


CEO Compensation Analysis

Compensation vs Market: Kamal's total compensation ($USD0.00) is below average for companies of similar size in the Indian market ($USD50.75K).

Compensation vs Earnings: Kamal's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.7yrs

Average Tenure

66yo

Average Age

Experienced Management: 500366's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

68yo

Average Age

Experienced Board: 500366's board of directors are considered experienced (3.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹231,29405 Nov 19
Singh Family Foundation, Endowment Arm
EntityCompany
Shares44,056
Max Price₹5.25

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Preetha Pulusani (59yo)

    President of North America & International Operations

    • Sudhindra Shirguppi

      Executive Vice President of Geospatial Engineering & Business

      • Vinay Sawarkar

        Senior Vice President of Human Resources

        • Dinesh Kapadia (66yo)

          CFO & Chief Compliance Officer

          • Tenure: 1.7yrs
        • Kamal Singh (68yo)

          Founder

          • Rajbir Rathi

            Executive Vice President of Business Development Defence

            • Shafik Jiwani

              President of Rolta UK & Head of Geospatial Solutions Worldwide

              • Blane Schertz

                Executive Vice President of Legal - North America

                • Tenure: 4.4yrs
              • Tariq Farooqui

                Vice President of Sales & Marketing

                • K. Parnaik (66yo)

                  Joint MD of Defence & Security and Whole-Time Director

                  • Tenure: 3.7yrs
                  • Compensation: ₹20.80m

                Board Members

                • Kamal Singh (68yo)

                  Founder

                  • Homai Daruwalla (71yo)

                    Non-Executive Independent Director

                    • Tenure: 3.5yrs
                    • Compensation: ₹1.10m
                  • Ram Pradeep (68yo)

                    Non-Executive Independent Director

                    • Tenure: 3.6yrs
                    • Compensation: ₹1.20m
                  • Padam Pal Bhandari (73yo)

                    Non-Executive Independent Director

                    • Tenure: 3.5yrs
                    • Compensation: ₹1.00m
                  • K. Parnaik (66yo)

                    Joint MD of Defence & Security and Whole-Time Director

                    • Tenure: 3.7yrs
                    • Compensation: ₹20.80m

                  Company Information

                  Rolta India Limited's company bio, employee growth, exchange listings and data sources


                  Key Information

                  • Name: Rolta India Limited
                  • Ticker: 500366
                  • Exchange: BSE
                  • Founded: 1989
                  • Industry: IT Consulting and Other Services
                  • Sector: Software
                  • Market Cap: ₹691.767m
                  • Shares outstanding: 165.89m
                  • Website: https://www.rolta.com

                  Number of Employees


                  Location

                  • Rolta India Limited
                  • Rolta Tower A
                  • Rolta Technology Park, 22nd Street
                  • Mumbai
                  • Maharashtra
                  • 400093
                  • India

                  Listings

                  TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                  500366BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 1995
                  ROLTANSEI (National Stock Exchange of India)YesEquity SharesININRMar 1995

                  Biography

                  Rolta India Limited, together with its subsidiaries, provides various information technology (IT) solutions and services in India and internationally. The company operates in two segments, Enterprise Geospatial and Engineering Solutions, and System Integration and Enterprise IT Solutions. Its solutions include BI and big data analytics, smart city, cloud security and IT transformation, geospatial fusion, enterprise application, e-Governance, financial analytics, defense, safety and security, and engineering AIM solutions. The company also provides application development and maintenance, managed, Rolta adviser, business consulting, enterprise performance management, GIS, and engineering services. Its products include Rolta OneView, a BI and big data analytics solution; Rolta IT-OT Fusion, a middleware integration solution; ROLTA iPerspective, an enterprise suite for SOA needs; Rolta SmartMigrate solution; Rolta OnPoint, a spatial integration application; Rolta GeoCAD, an emergency response management solution; Rolta Command and Control Solution; Rolta Photogrammetry Suite, a solution to publish GIS data; Rolta Image Processing Suite; Rolta 3D Analysis and Visualization Suite; and Rolta Battlefield Management Systems. The company serves defense, homeland and maritime security, government, infrastructure and natural resources, oil and gas, chemicals, discrete manufacturing, transportation, banking and financial services, and retail and healthcare industries, as well as utilities comprising power, water, gas, and telecom. Rolta India Limited was incorporated in 1989 and is headquartered in Mumbai, India. 


                  Company Analysis and Financial Data Status

                  All financial data provided by Standard & Poor's Capital IQ.
                  DataLast Updated (UTC time)
                  Company Analysis2020/01/27 12:40
                  End of Day Share Price2020/01/27 00:00
                  Earnings2019/09/30
                  Annual Earnings2019/03/31


                  Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.