Wipro Ltd - Margins drive solid performance, retain ACCUMULATE - Emkay

Reco: ACCUMULATE
CMP: Rs 515
Target Price: Rs 550

- Revenues at US$ 1,631.1 mn (+2.7% QoQ) tad ahead of estimates. IT Services EBIT margins up 250 bps QoQ to 22.5%, highest since Sep'10 quarter levels

- Growth in top 10 clients remains ahead of co average with even performance in Non Top 10 clients picking up (+2.3% QoQ, highest in over 6 quarters

- Dec'13 quarter revenue guidance inline with expectations. Commentary remains positive citing up tick in discretionary spending across verticals in US

- Raise FY14/15E EPS by 2/4% to Rs 30.4/36.5 driven by Sep'13 quarter beat and higher margin assumptions. Retain ACCUMULATE with revised TP of Rs 550 (V/s Rs 530 earlier).

Source : Equity Bulls

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