Wipro Ltd.

NSE: WIPRO | BSE: 507685 | ISIN: INE075A01022 |Industry: IT Consulting & Software
|Expensive Star
515.25 2.95 (0.58%)
NSE May 07, 2021 15:31 PM
Volume: 14.7M

Wipro Ltd.    
16 Apr 2021
Accumulate: Wipro Ltd.
HDFC Securities
We increase our FY22/23E EPS by +4.4/4.7% to factor in better growth visibility for FY22E. Our target price of INR 475 is based on 20x FY23E EPS (~20% discount to INFY). The stock is trading at 20.3/18.2x FY22/23E EPS. Wipro: We maintain ADD on Wipro, following a strong revenue performance and better than expected margin performance. Revenue growth of 3.0% QoQ CC was broad-based and 1QFY22 guidance of +2-4% QoQ growth indicates a continuation of strong momentum. The deal pipeline remains robust and the company won 12 large deals (Telefonica) with a net-new TCV of USD 1.4bn. Wipro clocked a total TCV of USD 7.1bn (USD 2.6bn net new) for 2HFY21, which is impressive and provides growth visibility (~4% YoY growth from new deals). Wipro under the new structure is focusing on revving the growth engine led by large deal wins, leveraging partner ecosystem and higher investments in talent. Key positives include (1) strong guidance, (2) pick-up in deal wins, (3) robust cash generation (OCF of ~137% of net income), and, (4) margin decline of only 64bps QoQ despite wage hike.
Wipro Ltd. is trading above all available SMAs
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