Wipro - Q1 FY22 Result Report - YES Securities

(Rating: ADD, TP: Rs625, Upside: 8.5%)

- Revenue growth at 12.2% QoQ in USD terms for IT services was slightly above estimate even after considering the completion of Capco acquisition in the quarter. Organic growth was 4.9% QoQ. Growth was broadbased as BFSI grew 23% QoQ, Consumer grew 14% QoQ and Energy and utilities grew 11.8% QoQ; there was some softness in manufacturing vertical.

- Excluding other operating income, Consolidated EBIT margin was down 330 bps QoQ, as per estimates , due to wage hike , more hiring and adverse margin impact of Capco acquisition.

- For Q2FY22, it has provided strong revenue guidance of 5-7% sequential growth in IT services.( Capco impact is considered)

- The valuation remains stretched as its trades at 22x on FY23 earnings. Consequently, we maintain ADD on the stock with revised target price of Rs 625.

Shares of WIPRO LTD. was last trading in BSE at Rs.577.65 as compared to the previous close of Rs. 575.75. The total number of shares traded during the day was 1319818 in over 21170 trades.

The stock hit an intraday high of Rs. 589 and intraday low of 568.25. The net turnover during the day was Rs. 762484931.

Source : Equity Bulls

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