Hold Wipro; target of Rs 400: Axis Securities

Axis Securities report on Wipro

In Q1FY24, Wipro’s reported revenue stood below our expectations at Rs 22,831 Cr, down 1.5% QoQ and 2.8% QoQ (in CC terms). The company reported operating profits of Rs 3,569 Cr, flat on a QoQ basis. Its operating margins, too, remained below our expectations and stood flat at 16%, largely led by higher operating expenses. The company’s net profit stood at Rs 2,886 Cr, registering a de-growth of 7% QoQ.

Outlook

We recommend a HOLD rating on the stock and assign a 15x P/E multiple to its FY25E earnings of Rs 25.9/share to arrive at a TP of Rs 400/share, implying an upside of 2% from the CMP.