Continue to be negative on Wipro, says Kotak Institutional

Sanjeev Prasad, Executive Director and Company Head at Kotak Institutional Equities says he continues to be negative on Wipro. “We continue to have a reduce rating on the stock.”

Prasad told CNBC-TV18, “We continue to have a reduce rating on Wipro with a revised target price of Rs 350. We have cut our earnings number by about 5 percent for 2014. We continue to be negative on the stock as of now.”
“Let us see how much more correction takes place and depending on valuation whether we need to review the call or not. As of now even if I look at 2015 numbers we are still looking at about Rs 28 of EPS. So it is not as if the stock has come down to very attractive levels for us to get really excited about it. 14 times is still not cheap in the context of the kind of numbers we are going to see going forward,” Sanjeev Prasad added.