Wipro Ltd. share price target

We recommend a BUY rating on the stock and assign a 28x P/E multiple to its FY24E earnings of Rs 27.7/share to arrive at a TP of Rs 655/share, implying an upside of 15% from CMP.

Wipro has grown 4.5% QoQ (on organic basis) over the past two quarters on the back of healthy demand, strategic restructuring and winning multi-year deals. The company is witnessing TCV increase of 19% YoY and ACV increase of 28% YoY. The company has also hired leaders to focus on top accounts and winning large deals....

Q2 revenue growth beat estimates at 6.9% USD/8.1% CC QoQ and surpassed guided range of 5-7% CC QoQ

WPRO reported a strong (8.1% QoQ CC) revenue growth in IT Services in 2QFY22, ahead of our estimate of 6.9%. Organic growth (excluding Capco) of 4.5% QoQ also came in ahead of our estimate. The management highlighted...

IT services revenue of $2.58 bn, 8.1% QoQ CC, 6.9% QoQ USD is above our and cons estimates (Ple: 6.6%, Cons: 6.4%). Organic growth was also robust at 4.6% QoQ CC. Capco acquisition performed well contributing US$236 mn...

Strong order book, robust growth across segments, new deals and acquisition should drive growth in upcoming quarters. However, we expect margins to remain under pressure, with expenses expected to rise in the near-term. Given limited upside potential, we retain our HOLD rating with a revised TP of Rs. 610 based on 26x FY23E EPS. Robust topline driven by growth across verticals During Q1FY22, revenue rose 22.4% YoY to Rs. 18,252cr (+12.0% QoQ CC basis) due to increase in demand and volumes across all major segments. BFSI (incl. Capco)...

We recommend a BUY with TP of Rs. 655/share.

of IT services revenue was up by strong 23% QoQ. Similarly the CBU (consumer business unit), ENRU (Energy, Natural Resources & Utilities) and HBU (healthcare business unit) which accounted for 17.3%, 13.1% and 11.9% of IT Services revenue has registered strong growth of 14.1% QoQ, 11.8% QoQ and 2.6% QoQ respectively. The communication and technology business units have registered a growth of 12.4% QoQand 2.5% QoQ respectively. The manufacturing registered a de-growth of 1.1% QoQ. Operating profit margin has slumped from 24.8% to 22.7%, leading to 4% rise in operating profit to Rs 4,195.70 crore. Other income rose 8% to Rs 577.9 crore. Provision for interest fell...

What should investors do? Wipro's share price has grown by ~3x over the past five years (from ~| 210 in Jul 2016 to ~| 586 levels in July 2021). Target Price and Valuation: We value Wipro at | 670 i.e. 26x P/E on FY23E EPS...

WPRO posted an upbeat QoQ performance in Q1FY22 with 12% CC revenue growth, ahead of our (8.9%) and street estimates