Wipro reported a heathy set of Q4FY21 numbers. The company reported healthy IT services revenue growth and margins in the quarter. Key highlights of the quarter were 1) healthy deal wins up 16.7% QoQ to US$1.4 billion, 2) healthy net addition of 7,404 employees and 3) higher offshore up 180 bps to 54.5%. Robust Q1FY22E IT services revenues guidance would be in range of US$2,195 -2,238 million, translating to 2.0-4.0% QoQ growth. The guidance does not include announced acquisitions of Capco and Ampion.
Valuation & Outlook
We believe Wipro possesses all the key ingredients of robust growth in the long run. In addition, improved deal wins, higher demand in Europe, client mining, acquisition of new logos and traction in digital revenues bode well for revenue growth. Further, the company's aspiration to add one large deal each quarter will lead to healthy revenue growth. However, the recent run up in stock price prompts us to maintain our HOLD rating on the stock with a revised target price of Rs. 530 (21x PE on FY23E EPS) (earlier TP Rs. 490).
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_Wipro_Q4FY21.pdf
Shares of WIPRO LTD. was last trading in BSE at Rs.469.25 as compared to the previous close of Rs. 431. The total number of shares traded during the day was 5049338 in over 79418 trades.
The stock hit an intraday high of Rs. 473.5 and intraday low of 437. The net turnover during the day was Rs. 2344616283.