Wipro Ltd. share price target

With multiple deal wins' management has proved their mettle in execution. Growth has become top priority for Wipro as the new CEO aims to transform the company into more outward focused. Even in last quarter Wipro has surprised street with higher revenue guidance of 1.5-3.5% for Q3FY20. Shift from traditional 3 axes model to 2 axes model lead to reduction of P&Ls; from 25 to 4 driving in sizable savings. Wipro's IT services EBIT margins came at 19.3% (+30bps QoQ) in 2Q21 slightly ahead of our and street estimates 19% underscores the new CEOs focus of profitable growth....

We initiate coverage on Wipro Ltd (Wipro) with a BUY rating and target Price of Rs 432 valuing at 18x FY23E EPS.

At its analyst day, Wipro's (WPRO) MD & CEO Mr Thierry Delaporte shared his plan for a bolder Wipro and to revive company's growth by having a high performance culture and simplification of its organization structure. He plans to achieve this through 5 strategic priorities which he believes can revive WPRO's revenue growth along with maintaining or improving EBIT margin. WPRO targets to beat the avg. industry growth rate, however, it has not shared a timeline for the same. We introduce FY23 financials and forecast revenue (US$)/EPS CAGR of 6.5%/7.1% over FY21-23E. We upgrade the stock to ACCUMULATE vs. HOLD earlier with new TP of...

The key focus of Wipro's Analyst Day was on operational changes and steps undertaken to accelerate revenue growth. The company expects the shift to four Strategic Market Units and two Global Business Lines to help streamline operations and increase its focus outside of the US. Creation of a global account executive (GAE) role would help WPRO better address long-standing issue in client mining and retention. We are less sure of the utility of delineating clients by region (unlike by industry at peers) as this could impact its ability to tap into global accounts and...

We attended the virtual analyst meet of Wipro. The company, like other IT companies, expects robust acceleration in digital technologies. Geographically, Wipro expects faster growth from Europe & APMEA region while vertically it expects growth from BFSI, retail & consumer, energy & utilities and manufacturing. The new CEO also highlighted his strategy of: 1) simplify operating model, 2) build talent at scale, 3) accelerate growth, 4) strengthen clients & partnership and 5) lead with business solution. For accelerating growth, the CEO's focus is on large deals, client mining,...

bold management initiatives as initial signs of trajectory reversal. Thierry Delaporte (new CEO) along with senior leadership team held a virtual analyst day to highlight Wipro's new strategy. The new CEO has outlined new strategic direction, 1) accelerate growth, 2) strengthen clients and partnerships, 3) lead with business solutions, 4) build quality talent at scale, and 4) simplify the operating model. Management has recognized that speed is the new cost, making strategy more client focused thus enabling agility in...

Wipro's (WPRO) analyst meet was focused on a slew of strategic changes being implemented by its new CEO.

The key focus of Wipro's Analyst Day was on operational changes and the steps undertaken to accelerate revenue growth. The company expects the shift to four Strategic Market Units (SMUs; focused on sales) and two Global Business Lines (GBLs; focused on delivery) to help streamline operations and increase its focus outside of the US. It is also de-prioritizing some sectors (Hospitality, Airlines, Public Sector, etc.) and regions (Asia, Africa, and South America 2-3% of revenues) to increase the focus on high-growth businesses. In our view, streamlining P&L; to four SMUs (v/s 20 P&Ls; earlier) should free...