Accumulate Wipro; target of Rs 620: P Lilladher

Prabhudas Lilladher's report on Wipro

"Wipro continues weak revenue momentum compared to peers. Despite strong deal win over the last two years, the revenue momentum failed to accelerate for Wipro. Asynchronous growth among top-10 and non-top 10 clients have resulted in weaker growth. We see limited scope of outperformance despite deal wins in near term. Energy and Utility vertical has been one of the strongest growth drivers for Wipro over the last three years (after SAIC unit acquisition). However, weaker crude price (~40% correction in the last 6 months) put discretionary projects of their Energy clients at risk. We may witness revenue deceleration in this vertical as green-field projects and technology upgrades might be put to halt."

"We expect challenges for revenue growth and operating margin to restrict any upside potential. We roll earnings for FY17. Retain “Accumulate” with TP of Rs 620", says Prabhudas Lilladher research report.

For all recommendations, click here

Read More