Accumulate Wipro; target of Rs 580 Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Wipro with a target price of Rs 580 in its research report dated October 18, 2024.

Broker Research

October 18, 2024 / 12:51 IST

Accumulate

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on Wipro

Wipro's Q2 results were notably stronger than expectations, with both revenue and margins exceeding expectations. It reported IT Services revenue of US$ 2.6 bn, up 0.6% QoQ CC compared to our & cons. est. of flattish quarter. Capco continues its positive momentum but weakness in few segments & client specific issues restricts broad based recovery. Margin performance was impressive during quarter despite 1-month impact of wage hike. Deal wins were robust with TCV of US$ 3.6 bn & large deal wins of US$ 1.5 bn. However, after an impressive Q2 the outlook still remains soft as Q3 will be marked by furloughs due to which company is guiding for revenue guidance of -2 to 0% QoQ CC growth in Q3. As anticipated the growth momentum within Capco continued in 2Q with 3.2% QoQ CC growth, which is a third consecutive quarter of delivering growth above 3% QoQ.

Outlook

We estimate revenues/earnings CAGR of 4.1%/8.8% over FY24-FY27E. The stock is currently trading at 20x FY27E. We are assigning P/E of 22x to FY27E with a target price of Rs580. We maintain “ACCUMUALTE” rating.

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