172@29@17@105!~!172@29@0@53!~!|news|business|stocks|reduce-wipro-target-of-rs-230-dolat-capital-5567511.html!~!news|moneycontrol|com!~!|controller|infinite_scroll_article.php!~!is_mobile=false
Moneycontrol
LIVE: Watch experts decode 'The rise of ESG investing'
Last Updated : Jul 20, 2020 11:23 AM IST | Source: Moneycontrol.com

Reduce Wipro; target of Rs 230: Dolat Capital

Dolat Capital recommended reduce rating on Wipro with a target price of Rs 230 in its research report dated July 18, 2020.

Broker Research
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Dolat Capital's research report on Wipro

Wipro reported 7.5% QoQ decline in CC Revenues (DART estm: 6.5% decline) led by broad-based decline across verticals with Retail and Communication severely impacted by 16.2% and 12.4% QoQ de-growth. OPM improved by 150bps QoQ for IT services at 19.0% largely lead by improved utilization (160bps QoQ) and cost control across expense items. (DART estm: 16.4%). New CEO & MD, Thierry Delaporte in his first address (joined a week prior) said is working on its renewed strategy that is focused more on growth and may see some impact on profitability based on need for investments. Apart from building vision, roadmap the new CEO has already shared his focus on near term operations and execution. Wipro’s expects stability in Communications, Retail and Tech verticals but has limited visibility on stability over other verticals. This coupled with slow decision making in deals implies uncertain outlook in near term and thus we expect sequential decline in its revenues/OPM.

 

Close

Outlook

We believe the commentary highlights continued limited visibility on recovery. Post the earnings, we expect 1.3% CAGR revenue de-growth over FY20-22E and 1.9% CAGR earning de-growth over FY20-22E. We maintain our Reduce rating with TP of Rs 230 (valued at 14x FY22E earnings – inline with its -1SD below its mean).



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.
First Published on Jul 20, 2020 11:23 am
Sections