Sharekhan's research repor on Wipro
Q2 performance was in-line on revenue and margin front; CC revenue grew 2% q-o-q, while EBIT margin for IT services expanded 14 bps q-o-q to 19.2%; cash conversion remained strong. Wipro provided better-than-expected growth guidance of 1.5-3.5% q-o-q for Q3FY2021E; management expects growth momentum in BFSI to continue, while energy & utilities and technology verticals would recover in Q3. Although new CEO has a challenging task to get Wipro back to industry-level growth trajectory, we expect revenue growth to exceed historical levels in FY2022E/FY2023E.
We upgrade Wipro from Hold to Buy with a revised PT of Rs. 450 as demand is improving across its large verticals.