Sharekhan has given Buy recommendation for Wipro with a target price of Rs. 670 in its research report issued on Jul 15, 2021
Sharekhan’s research report on Wipro
Revenue growth handily beat guidance, while margins lagged estimates; net staff additions stayed strong, and cash conversion too improved strongly. Management provided strong revenue growth guidance of 5-7% q-o-q for Q2FY2022, as we expected, led by strong growth in organic business and incremental revenue contribution from inorganic business. Q2FY2022 margins would be hit by wage hikes for junior staff, two-month impact of salary revision for senior staff and investments in talents. USD revenue growth likely to clock CAGR of 15.3% over FY2021-FY2024E.
We maintain a Buy rating on Wipro with a revised PT of Rs. 670, owing to strong growth in top accounts, a healthy deal pipeline and rising spends on digital transformation initiatives.