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Budget 2021

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Moneycontrol

Budget 2021

Associate Partners:

  • SMCSamsungVolvo
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Hold Wipro; target of Rs 490: ICICI Direct

ICICI Direct recommended hold rating on Wipro with a target price of Rs 490 in its research report dated January 14, 2021.

January 14, 2021 / 08:37 PM IST
 
 
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ICICI Direct's research report on Wipro


Wipro reported a heathy set of Q3FY21 numbers that were above our estimates on all fronts. Revenue growth took place across verticals. The IT service EBIT margin increased 234 bps QoQ to 21.7% vs. our estimate of 19.5%, mainly led by higher offshoring. Key highlights of the quarter was 1) the company has won 12 deals with > US$30 million (mn) TCV and TCV booked of these deals was over US$1.2 billion (bn), 2) Wipro has declared dividend of Rs 1/share, 3) Its offshore percentage increased 230 bps to 52.7%. Wipro guided that its Q4FY21E IT services revenues would be in the range of US$2,102-2,143 mn, which translates to 1.5-3.5% QoQ growth.


Outlook


Hence, we maintain our HOLD rating on stock price with a revised target price of Rs 490 (20x PE on FY23E EPS) (earlier target price of Rs 435).


For all recommendations report, click here


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first published: Jan 14, 2021 08:37 pm

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