Buy Wipro Ltd For Target Rs.815 - ICICI Direct
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
Strong Q2 numbers
About the stock: Wipro is an IT, consulting & BPO catering to BFSI, health, consumer, energy & utility, technology and communication.
* With 190000 employees, it serves clients across six continents
* Consistent payout (~70%), healthy OCF to EBITDA ratio of ~89%
Q2FY22 Results: Wipro reported robust Q2FY22 results.
* Revenues increased 8.1% QoQ in cc terms, 4.6% growth was organic
* Wipro signed nine large deals with TCV of US$580 million in Q2
* Guided for 2-4% QoQ growth in Q3FY22E
What should investors do? Wipro’s share price has grown by ~4x over the past five years (from ~| 174 in October 2016 to ~| 708 levels in October 2021).
* We maintain BUY on strong deal momentum especially on large size deals.
Target Price and Valuation: We value Wipro at | 815 i.e. 29x P/E on FY23E EPS
Key triggers for future price performance:
* The strategy of the new CEO to drive turnaround in the company
* Restructuring of organisation, client mining, aspiration to win one large deal every quarter to drive growth
* Higher penetration in Europe, client mining, acquisition of new logos and traction digital revenues to further boost revenue growth
Alternate Stock Idea: In our IT coverage we like Infosys.
* Key beneficiary of increased spend in digital technology and industry leading revenue growth
* BUY with a target price of | 2,060
To Read Complete Report & Disclaimer Click Here
https://secure.icicidirect.com/Content/StaticData/Disclaimer.html
Above views are of the author and not of the website kindly read disclaimer
