Wipro Ltd. share price target

We recommend a HOLD rating on the stock and assign a 27x P/E multiple to its FY24E earnings of Rs 27.7/share to arrive at a TP of Rs 750/share, implying an upside of 9% from CMP.

Any sharp sell-off in the stock should be looked upon constructively as there is - i) strong deal pipeline, ii) Strong hiring continued, iii) Strong resilient margin performance, iv) Possibility of buyback post Q4FY22. Wipro reported miss in IT services revenue of $2.64 bn, 3% QoQ CC (Ple:...

The 3Q IT Services EBIT margin was down 20bps QoQ to 17.6%, in line with our estimate. Wipro has been able to sustain the EBIT margin ahead of its guided range of 17.017.5% despite the wage impact during the quarter. It reported TCV of USD600m in 3Q, moderately higher v/s the 2Q deal TCV. While we are not concerned about the miss in 3Q given the high base of 2Q as well as the seasonal impact, the 4Q revenue growth guidance of 24% QoQ also missed our estimate (coming in at 3.9% QoQ). Given the strong performance by Wipro over the last few quarters, along with positive...

WPRO's analyst meet focused on highlighting results of a transformed business model and reiterating a bold strategy

Wipro aspires to sustain margins and invest back in growth. Wipro is progressing well on their new strategic imperatives 1) Bold (Capco, one of the biggest consulting acquisitions, is performing well with 22 joint deal wins and 45 deals in pipeline) 2) High performance driven culture (incentives for top performers increased by 2x) and 3) moving closer to clients (60% of leadership in local markets with increased proximity to clients,...

We attended WPRO's Investor Day. The management commentary continues to point towards sustained growth momentum, with stable margin. The management indicated a strong and broad based demand environment. All industry verticals are witnessing good demand. Within geographies, its earlier growth driver the US continues to grow, while Europe (particularly continental Europe) has witnessed strong acceleration. WPRO aspires to be the orchestrator of choice for customers on Cloud deals, allowing it to partner both with clients and Hyperscalers. It reiterated its plan...

EBITDA rose 22.8% YoY despite contraction in EBITDA margin (-130bps YoY owing to higher operating expenses and pressure from acquisition of Copco and Ampion). PAT rose 18.9% YoY, partially impacted by lower...

Consolidated revenue of Wipro for the quarter ended Sep 2021 stood at Rs 19668.90 crore, a growth of 7%QoQ and 30%YoY. The revenue of IT services was up 7% to Rs 19379.9 crore. Revenue of IT services in US dollar terms was at USD 2580, a growth of 6.9%QoQ and 29%YoY....

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...