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Hold Wipro: target of Rs 580: Sharekhan

Sharekhan recommended Hold rating on Wipro with a target price of Rs 580 in its research report dated April 29, 2022.

April 30, 2022 / 10:14 PM IST
 
 
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Sharekhan's research report on Wipro


For Q4FY22, Wipro’s OPM lagged our expectations, while revenue was in line with estimates. Net employee additions, client mining, logo additions and deal ACVs stayed strong, but attrition continued to inch up. The management guided for revenue growth of 1-3% q-o-q for Q1FY2023, below expectations of 2-4%. Record-high deal pipeline and strong net hiring indicate the strong underlying demand going ahead. Supply-side challenges, wage revision, rising discretionary expenses, and investments in frontline sales to weigh on its margins over next 2-3 quarters. Management guided EBIT margin to remain at 17-17.5% for FY2023.


Outlook


We maintain a Hold on Wipro with a revised PT of Rs. 580, given robust ACVs, strong client mining and improved service portfolio due to capability-based acquisitions.

For all recommendations report, click here

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first published: Apr 30, 2022 10:10 pm
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