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Last Updated : Oct 24, 2016 02:56 PM IST | Source: CNBC-TV18

Wipro & MindTree's earnings under strain: HDFC Securities

No significant upside is seen in Wipro‘s earnings, said Apurva Prasad, Research analyst – IT at HDFC Securities who has scaled down earnings estimate by 2-3 percent for the company.


The IT industry has not seen much positive earnings growth for the second quarter. While Wipro beat expectations in Q2, it expects revenue from its IT business to be in range of 0-2 percent, which is lower than analysts’ expectations of 1-3 percent for next quarter.

No significant upside is seen in Wipro’s earnings, said Apurva Prasad, Research analyst – IT at HDFC Securities who has scaled down earnings estimate by 2-3 percent for the company.

“Growth is the biggest concern for Wipro,” he said.

MindTree, which reported 37 percent fall in consolidated net profit, had a double hit on margins and growth. The company is facing pressure on its legacy business.

HDFC Securities has a sell call on MindTree and it is likely to lower its earnings expectation further by 10 percent.

Prasad is positive on Persistent with a target price of Rs 770.

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First Published on Oct 24, 2016 08:58 am
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