UPDATE: Wipro Ltd. (WPRO:IN) (WIT) PT Raised to INR450 at CLSA Following Q4 Earnings

April 16, 2021 12:22 AM EDT
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(Updated - April 16, 2021 5:00 AM EDT)

CLSA analyst Pankaj Kapor raised the price target on Wipro Ltd. (WPRO:IN) (NYSE: WIT) to INR450.00 (from INR440.00) while maintaining a Underperform (4) rating.

The analyst comments "Wipro reported 3% QoQ constant currency revenue growth in 4Q21, slightly ahead of our estimate, and guided for 2%-4% QoQ growth in 1Q22 (CLSA: 0%-2% excluding acquisition/captive deal ramp-up). The margin impact of wage hikes was also well managed with its Ebit margin down 70bps, half of the expected drop. Its large deal order-book was at US$1.4bn, steady QoQ, but again dominated by a single US$600m+ deal and hence restricts extrapolation. We like the aggression Wipro has adopted under new management, but multiple moving parts—acquisition activity, large deals and internal restructuring—distort the picture, and given an elevated valuation, we retain our wait and watch stance. We make minor changes to our FY22/FY23 EPS (c.1%) estimates to factor-in its latest acquisitions and current reset. We maintain our U-PF rating on a new Rs450 target price (Rs440 earlier)."


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