Wipro Ltd. share price target

Robust pipeline, improving quality of revenue, better utilization and favorable operating leverage should drive growth in upcoming quarters. However, we downgrade our rating to HOLD given the recent surge in stock prices with a revised TP of Rs. 463 based on 20x FY23E EPS. Improved performance across all sectors Revenue for Q3FY21 rose 1.3% YoY and 3.7% QoQ to Rs. 15,670cr (+3.4% QoQ CC basis) as revenue from IT services in dollar terms rose 3.9% QoQ to USD 2,071mn. On business unit basis, Consumer business rose sharply (+4.7%QoQ) on the back of deal...

growth of 3.9%QoQ and a 1.1%YoY. The IT services revenue of the company at USD 2071 growth across all strategic business units/verticals. The core BFSI which accounts for about 31% of IT services revenue was up by 1.8%QoQ. Similarly the CBU (consumer business unit), ENRU (Energy, Natural Resources & Utilities) and HBU (healthcare business unit) has registered strong 5.6%QoQ, 5.4%QoQ and 5.2%QoQ respectively. The communication, manufacturing...

Restructuring of business, large deals to drive growth We believe Wipro possesses all the key ingredients of robust growth in the long run. The company has strong full services capabilities across applications, infra, BPS and engineering, which should help it as integrated deals gain prominence. Further, the induction of a new CEO with focus on profitable growth make us positive on its future growth. This, coupled with the new CEO's focus on simplification of organisation, improving client mining, focus on fewer verticals and geographies to drive growth are...

Wipro (WPRO) reported better-than-expected revenue growth of 3.4% QoQ CC, on the higher end of the guidance band (1.53% QoQ CC). Growth was broad-based across verticals, with five of seven verticals showing good QoQ growth. WPRO's continued margin improvement (+250bp QoQ / +330bp YoY) and strong cash generation (FCF/PAT at 133%) were the key positives in 3Q. In 9MFY21, IT Services reported revenue (USD)/EBIT/PAT of 3.2%/10.2%/6.9%. Wipro reported 12 deal closures and deal TCV of USD1.2b in 3Q, including USD700m from Metro AG. It further guided for USD CC revenue growth of...

We recommend BUY and assign 22x P/E multiple to its FY23E earnings of Rs. 24.1 per share which gives a TP of Rs. 522 per share, an upside of 14%.

Wipro's revenue grew at 3.4% QoQ CC (Ple: 3%, Cons: 3.2%) & 3.9% QoQ in USD terms. Revenue growth was broad based growth led by 5.6% QoQ rise in E&U;, 5.2% QoQ in Consumer BU and 5.5% QoQ growth in Health BU (all in...

Wipro's (WPRO) Q3FY21 IT service revenue growth of 3.4% QoQ in CC was in-line with our forecast. However, IT services EBIT margin of 21.7%, +245bps QoQ was a big beat to our forecast. This resulted in consolidated EBIT margin improving by ~270bps QoQ to...

Wipro (WPRO) delivered an upbeat QoQ performance in Q3FY21 with 3.4% CC revenue growth, ahead of our estimate of 2.7%.

Rising adoption of smartphones, high internet speed and social distancing (due to Covid-19) has changed consumer behaviour. Consumers now prefer to transact (buy a product) virtually over the smartphone via an app instead of physical transaction. This has led to virtualisation of business models. In addition, to keep business up and running in a work from home scenario, technology is gaining traction. As a result, new age technologies like cybersecurity (to protect business from work from home scenario), app development (to help customer transact virtually) and Cloud (to enable...

We recommend BUY and assign 18x P/E multiple to its FY23E earnings of Rs. 24.0 per share which gives a TP of Rs. 432 per share, an upside of 19%.