Maintain 'buy' on Wipro - TP Rs.475 - Geojit BNP Paribas

- The company aims to differentiate itself by specializing in sub -verticals with longer revenue cycles, build capabilities in analytics and cloud computing and standardize its back-end using lean manufacturing principles.

- The company is also focusing on mining its 138 largest clients by using dedicated engagement managers.

- It has implemented linking variable pay to client satisfaction and this has been working well.

- From the near term view, it appears that deal closures have been slower than expected in 1Q. Pricing pressures in some pockets and challenges in the financial services sector are likely to persist in the near term. However, these negatives have already been accounted in the FY13 expected USD revenue growth rate of nearly 12% yoy.

- The company has to improve its inefficient cost structure and this will provide enough room for improvement in performance in the medium term.

- The company and its peers are expected to increase their efforts to build non - linear models, develop deeper specializations and prepare to counter the threat of cloud computing on the traditional applications business.

Source : Equity Bulls

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