Wipro Ltd. share price target

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...

2Q22 guidance of 5-7% QoQ CC revenue growth implies strong 2-4% QoQ organic growth and considerably shift full year FY22 growth (~26%). IT services revenue of $2.41 bn, 12.2% QoQ USD, surpassed top end of the guidance by ~200 bps driven by strong growth in organic (4.9% QoQ USD) as well as inorganic Capco business. (~US$ 157 mn). New management's focus...

operating profit to Rs 4,027.60 crore. Purchase of finished goods cost rose from 0.93% to Other income fell 18.47% to Rs 533.3 crore. Profit before interest, tax and other Unallocable items (PBIT) has jumped 0.92% to Rs 3,413.00 crore. PBIT of IT Services segment rose 0.38% to Rs 3,339.80 crore (accounting for 97.86% of total PBIT). PBIT of IT Products segment rose...

We have increased our EPS estimates by 7%/5% for FY22/23 led by i) increase in organic revenue growth assumption (12% growth for FY22E), ii) Increase in EBIT margins assumption for FY22/23. Wipro's 4QFY21 performance was beat on all counts i) revenue grew at 3.9% QoQ USD (Ple: 3.5%, Cons: 3.5%) ii) EBIT margin of 21%, 100bps beat on our...

Wipro has seen strong deal wins (US$7.1 billion of which US$2.6 billion are large deals in H2FY21) and healthy traction in digital technologies like cloud, customer experience and cyber securities in Q4FY21. This, coupled with the restructuring of organisation, client mining (as seen in this quarter, which witnessed healthy client addition in US$100 million (mn), US$75 mn & US$50 mn buckets) and aspiration to win one large deal every quarter will lead to sustained revenue growth in the longer run. We believe Wipro's strong full services capabilities across applications, infra, BPS and...

Wipro (WPRO) reported an in line 4QFY21 revenue growth of 3% QoQ in CC terms in IT Services, near the higher end of its guidance band (1.5-3.5%). EBIT margin dipped 70bp to 21% due to a partial wage hike, but was ahead of our expectation of 20.4% on better cost control. It reported 12 large deals (over USD30m) and a TCV of USD1.4b in 4QFY21, including one large deal of over USD0.5bn in Americas (expandable to...

We recommend a BUY rating on the stock and assign a 22x P/E multiple to its FY23E earnings of Rs 24.3/share to arrive at a TP of Rs 535/share, implying an upside of 24% from CMP.

Q4FY21 saw another quarter of strong large deal TCV of US$1.4bn (including one deal with potential of US$1 bn) following US$1.2 bn in Q3. Further, along with smaller deals the total TCV of US$7.1 bn for H2FY21 saw a 33% YoY growth. Q1FY22 guidance of IT services revenue growth of +2% to +4% QoQ in CC is a beat to our expectation. We increase our FY22/23 revenue (US$) by 2.4%/2.9% and EPS by 6.5%/6.2%. We increase our TP to Rs485 (vs. Rs415 earlier), now based on 22x FY23E (20x earlier) and...

Wipro (WPRO) delivered an upbeat QoQ performance in Q4FY21 with 3% CC revenue growth, ahead of our estimate of 2.6%.