Edelweiss's research report on WiproWe recently hosted Wipro management (Mr Jatin Dalal, CFO and Mr Pavan Rao, IR) for investor meetings. Management spoke about its ambitious 2020 goal of achieving USD15bn revenue with 23% operating margins, drawing on a 7‐pronged theme. While acquisitions will be part of the 2020 game‐plan, efforts would be made to fill strategic gaps and spruce up domain expertise. Client mining would be key to achieve industry‐leading growth. While long‐term growth prospects are intact, management alluded to near‐term weakness from BFSI and energy verticals. We believe turnaround in Wipro is still some time away, but inexpensive valuations and buyback limit downside. Maintain ‘BUY’. Near term outlook remains weak while we await any signs of turnaround. Inexpensive valuation (12.3x FY18E EPS) and corporate action will limit downside. Maintain ‘BUY/SP’ with TP of INR650 (15x FY18E EPS) 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.
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