Prabhudas Lilladher's research report on Wipro
Wipro reported revenue (IT Service) of USD2.7b, down 0.3% QoQ in CC and flat QoQ in reported terms, in line with consensus. FY24 revenue growth stood at -4.4% CC YoY, at the lower band of the range to its closure peers. Although Q4 growth was aided by seasonal strength in Capco (up 6.6% QoQ), which led the growth for its key vertical BFSI (up 2.1% QoQ), otherwise the weakness was board-based across its BUs. Despite the softness in revenue growth, the IT service margin improvement was health at 16.4% (up 40 bps QoQ), which is again coming at the back of wage revision (2-monhs) in Q4.
Outlook
The stock is currently trading at 19x FY26e, we are assigning P/E of 19x to FY26e with a target price of INR 440. With that we assume coverage on Wipro with a “HOLD” rating.
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