January 27, 2017 / 16:31 IST
Edelweiss' research report on Wipro Wipro’s Q3FY17 IT services revenue, at USD 1,903mn (down 0.7% QoQ), came below Street’s 0.8% growth estimate, partly due to 130bps crosscurrency (cc) impact. However, IT services EBIT margin jumped 50bps QoQ to 18.3% on improvement in core operations. Another key disappointment was the weak 1-2% Q4FY17 growth guidance.
OutlookWipro’s India and Middle East business is undergoing restructuring, which is expected to last for next 2 quarters. We maintain that the company will remain a laggard on growth front in the large-cap space. However, valuation comfort limits downside. Maintain ‘BUY’ with revised target price of INR 558 (14x FY19E EPS; from INR 553).
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