Neutral Wipro; target of Rs 432: YES Securities

YES Securities' research report on Wipro

Wipro (WPRO) reported mixed financial performance for the quarter. The revenue growth was below expectation(cc growth of 0.6% QoQ), EBIT margin came in slightly above estimates. The sequential growth was led by Healthcare & Life Sciences vertical (up 5.5% QoQ) and Energy, Natural Resources & Utilities vertical (up 2.0% QoQ). The INR reported growth was supported by depreciation of INR by 2.9% QoQ vs USD. There was sequential improvement in EBIT margin(up 165bps QoQ) led by falling attrition, improving pyramid and INR depreciation. The moderation in employee attrition continues as LTM attrition was down 180 bps QoQ to 21.2%.

Outlook

We maintain our NEUTRAL rating on the stock with revised target price of Rs 432/share at 18.0x on FY24E EPS.

For all recommendations report, click here

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

Wipro - 16 -01-2023 - yes