Budget 2021

Associate Partners:

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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.


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

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Jan 14, 2021 08:37 pm

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