Shares of Wipro gained 17 percent intraday on July 15 a day after the company reported its June quarter earnings.
Company's June quarter consolidated profit grew by 2.8 percent sequentially to Rs 2,390.4 crore, supported by other income (up 10 percent QoQ) and good operating performance.
Consolidated revenue from operations declined 5.3 percent quarter-on-quarter to Rs 14,922.8 crore.
The earnings before interest and tax (EBIT) grew by 3.3 percent to Rs 2,782.2 crore and margin rose 146 bps QoQ to 19.06 percent during the April-June period.
CLSA | Rating: Underperform | Target: Raised to Rs 215 from Rs 210
The company has good cost control & a stable outlook, but sustainability is the key. It surprised positively with its margin.
The commentary on its near-term outlook is optimistic while sustaining momentum could be a challenge if revenue growth stays below its peers.
It feels that a potential buyback could limit the downside for the stock, reported CNBC-TV18.
Credit Suisse | Rating: Upgrade to buy | Target: Raised to Rs 260 from Rs 230
According to Credit Suisse, the company continue to lag peers on growth but is managing the costs well. Some part of these cost benefits will stay in the medium term. It raised FY21-23 EPS by 3-6% and raised target multiple to 14x.
It feels that the margin resilience, attractive valuations and likely buyback should help, reported CNBC-TV18.
Macquarie | Rating: Neutral | Target: Raised by 5% to Rs 210
Research house expects more clarity on the new CEO’ strategy in the next 3 months. The worst is likely to behind but revenue growth may be gradual, while uncertainty persists in certain sectors of the company. It raised FY21-22 EPS estimates by 2.6-7%, reported CNBC-TV18.
Prabhudas Lilladher | Rating: Upgrade to buy from sell | Target: Rs 257
Wipro posted weak inline revenue performance of -7.5% QoQ CC & -7.5% QoQ in reported terms. Weak revenue performance was led by communication (-15% QoQ decline) & CBU ( -12.3% QoQ decline).
The company did not provide any guidance for Q2FY21. Management indicated that it’s too early to comment on the Q2FY21 performance. The deal flows are better in Q2FY21 vs Q1FY21. Hence they expect the revenues to stabilize in Q2FY21.
At 10:14 hrs Wipro was quoting at Rs 263.00, up Rs 37.95, or 16.86 percent on the BSE.
