Firstcall has recommended a `Hold` on Rolta India (Q,N,C,F)* with a price target of Rs 220 as against the market price (CMP) of Rs 185 in its report dated Feb. 6, 2010.

The broking house pointed out at the market price of Rs185, the stock trades at 11.61 times and 10.26 times for FY10E and FY11E respectively. On the basis of EV/EBDITA, the stock trades at 5.02 times FY10E and 4.51 times for FY11E. Earning per Share (EPS) of the company for the earnings of FY10E and FY11E are seen at Rs15.93 and Rs18.04 respectively.

The top line and bottom line of the company is expected to grow at a CAGR of 17% and 8% respectively over FY10 to FY11E. Rolta India has further repurchased USD 15.0 Million of the outstanding Foreign Currency Convertible Bonds`s (FCCB`s), of the original issue of Zero Coupon FCCBs of USD 150 Million due in 2012.

Infoterra France, an EADS Astrium subsidiary and a leading provider of geo-information products and services has signed an agreement with Rolta India, an Indian multinational organization which provides innovative enterprise-level solutions and services.

 The broking house recommends `Hold` in this scrip with a target price of Rs 220.