Buy Wipro; target of Rs 719: Angel Broking

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26 Aug, 2025 12:21

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Angel Broking's report on Wipro
"Wipro posted a 1.1% qoq growth in its USD IT Services revenue to US$1,794.1mn V/s an expected US$1,770mn. Thus, the results have come in at the upper end of the guidance. In Constant Currency (CC) terms, the company posted a 0.2% qoq growth in its top-line for 1QFY2016. The EBDITA margin came in at 21.3% V/s an expected 23.0%; the EBIT margin came in at 18.5% V/s an expected 20.0%. Thus, the EBDITA margin and EBIT margin have dipped by 167bp and 144bp qoq, respectively. Consequently, the PAT came in at Rs 2,188cr V/s an expected Rs 2,261cr and V/s Rs 2,272cr in 4QFY2015, ie a dip of 3.7% qoq. For 2QFY2016, the company expects revenues from the IT Services business to be in the range of US$1,821mn-US$1,857mn, implying a 1.5-3.5% growth qoq."

Outlook and valuation: "The Management remains confident of the revenue growth pick-up sustaining, citing a pick-up in large deal closures and win rates, uptick in discretionary spending, strong business pipeline and momentum in demand from US sustaining. We expect USD and INR revenue CAGR for IT services to be at 10.0% and 11.8%, respectively, over FY2015-17E. We maintain our Buy rating on the stock with a target price of Rs 719", says Angel Broking research report.

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