Sharekhan has given Hold recommendation for Wipro with a target price of Rs. 420 in its research report issued on Oct 14, 2022
Sharekhan’s research report on Wipro
For Q2FY23, Wipro reported an improvement with qoq revenue growth of 4.1% in c/c although the reported revenue and EBIT margin numbers were slightly below our estimates. Sequential Improvement in EBIT margins at 15.1% was aided by pricing, productivity and rupee depreciation, which was partially offset by wage revision effective from September. Healthy signing of large deals in Q2 with Large deal TCV at US$725 mn after an exceptional Q1FY23 when it had clocked TCV of $1.1 billion translating into 42% y-oy growth in large deal bookings for H1FY23.Attrition stood at 23%, a moderation of 30 bps from the previous quarter. For the December quarter management has guided for a sequential revenue growth of 0.5% to 2.0% indicating factoring of seasonality and some caution due to uncertainty unfolded by the current macro environment.
We maintain a Hold on Wipro with a revised PT of Rs. 420, given the muted sequential guidance amid uncertainty prevailing on account of macro overhang.
At 17:30 Wipro was quoting at Rs 377.30, down Rs 1.80, or 0.47 percent.
It has touched an intraday high of Rs 387.00 and an intraday low of Rs 376.30.
It was trading with volumes of 656,828 shares, compared to its thirty day average of 638,143 shares, an increase of 2.93 percent.
In the previous trading session, the share closed down 7.03 percent or Rs 28.65 at Rs 379.10.
The share touched its 52-week high Rs 739.80 and 52-week low Rs 376.30 on 14 October, 2021 and 14 October, 2022, respectively.
Currently, it is trading 49 percent below its 52-week high and 0.27 percent above its 52-week low.
Market capitalisation stands at Rs 206,973.19 crore.