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Buy Wipro: target of Rs 510: Sharekhan

Sharekhan is bullish on Wipro has recommended buy rating on the stock with a target price of Rs 510 in its research report dated April 15, 2021.

April 16, 2021 / 04:07 PM IST
 
 
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Sharekhan's research report on Wipro


In-line revenue, margin beats our estimates; CC revenue grew by 3.0% q-o-q, while EBIT margin for IT services contracted by 69 bps q-o-q to 21%; offshore revenue mix remained the highest during Q4. Management provided strong revenue growth guidance of 2%-4% q-o-q, which indicated its aggressive participation in strong demand. Sequential revenue growth would translate to 11%-13% y-o-y growth in Q1FY2022. Margins likely be impacted by wage hike to senior staff, ramp-up of large deals, investments in front-line capabilities, and skill-based premium. Margin headwinds would be partially offset by strong revenue growth, higher offshoring, and operational efficiencies.



Outlook


We maintain our Buy rating on Wipro with an unchanged PT of Rs. 510, given large deal TCVs and strong demand environment for the digital transformation programme.


For all recommendations report, click here


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first published: Apr 16, 2021 04:07 pm

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