YES Securities' research report on Wipro
Wipro (WPRO) reported broadly inline financial performance for the quarter. The revenue growth was inline with expectation and EBIT margin slightly above expectation. The sequential growth was (1.5%) QoQ in USD terms, led by Healthcare vertical (up 7.8% QoQ). Revenue declined by 1.7% QoQ in cc terms. There was sequential improvement in EBIT margin (up 1bps QoQ) led by operating efficiency. The moderation in employee attrition continues as LTM attrition was down 130 bps QoQ to 14.2%. The near term demand environment remains challenging as the clients remain cautious regarding the evolving macroeconomic situation especially in the US and Europe; and consequently, we expect muted revenue performance in near term. We estimate revenue CAGR of 6.6% over FY23‐26E with average EBIT margin of 15.2% over the period.
Outlook
We maintain our NEUTRAL rating on the stock with revised target price of Rs 505/share at 19.5x on FY26E EPS. The stock trades at PER of 20.2x/17.9x on FY25E/FY26E 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
