Sell Wipro; target of Rs 250: HDFC Securities
HDFC Securities’ research report on Wipro
We downgrade WIPRO to SELL (from Neutral), post the insipid 4QFY19 show and weak guidance. Revenue growth remains challenged and margins are peaking. The recent security breach raises questions about client’s data security and is a setback to Wipro’s reputation.
The much awaited buyback (5.4% of equity at Rs 325/sh, 16% premium to CMP) kicks up FY21E EPS by ~2%. At 14x FY21E EPS, our TP is Rs 250 (~11 downside from CMP).
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