ICICIdirect.com's report on Wipro
Wipro reported a soft quarter with IT services constant currency (CC) revenues growing 3% QoQ (1.7-4% guidance) while $ revenues grew 1.8% QoQ to $1,772 million (2.4% QoQ, $1,782 million estimate)
IT services EBIT margins declined 80 bps QoQ to 22%, in line with our 22% estimate, led by wage hikes. Reported PAT of Rs 2,085 crore was below our Rs 2,133 crore estimate
Wipro gave Q3FY15E revenue guidance of $1,810 million to $1,840 million (2% to 4% QoQ growth)
We estimate Wipro will report revenue, EPS CAGR of 8%, 11% during FY14-16E (average 22.9% IT services EBIT margins in FY15-16E), vs. 14% each, reported during FY09-14 (average 21.9% margins) led by large deal ramp ups, client mining initiatives and a pick-up in discretionary spending. We value Wipro at Rs 610 (15.7x our FY16E EPS estimate of Rs 38.8) and maintain BUY rating on the stock with a target price of Rs 610", says ICICIdirect.com research report.
For all recommendations, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
