Hold Wipro: target of Rs 530: ICICI Direct

ICICI Direct's research report on Wipro

Wipro reported a heathy set of Q4FY21 numbers. The company reported healthy IT services revenue growth and margins in the quarter. Key highlights of the quarter were 1) healthy deal wins up 16.7% QoQ to US$1.4 billion, 2) healthy net addition of 7,404 employees and 3) higher offshore up 180 bps to 54.5%. Robust Q1FY22E IT services revenues guidance would be in range of US$2,195 -2,238 million, translating to 2.0-4.0% QoQ growth. The guidance does not include announced acquisitions of Capco and Ampion.

Outlook

the recent run up in stock price prompts us to maintain our HOLD rating on the stock with a revised target price of Rs 530 (21x PE on FY23E EPS) (earlier TP Rs 490).

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