Buy Wipro; target of Rs 285: ICICI Direct

January 16
16:25 2020

ICICI Direct’s research report on Wipro

Wipro reported an in line quarter on all fronts. In constant currency, global IT services revenues grew 1.8% sequentially (ITI acquisition contribution 0.3%) while EBIT margins expanded 30 bps QoQ to 18.4%. Key highlights of the quarter were: 1) Digital (39.8% of revenue) grew at 2.8% QoQ, 22.7% YoY, 2) decline in voluntary attrition to 15.7% (vs. 17.0% in Q2) and 3) Addition of one client QoQ in US$ 100 million+ bucket. Besides the technology segment, growth was broad based among verticals.


An in line quarter, scope for margin expansion and attractive valuations prompt us to be positive on the company. Coupled with digital acceleration, pick-up in execution, commentary on deal pipeline front is expected to lead to an improved growth trajectory in the next two years. This, along with reasonable valuation (~12x FY22E EPS) prompts us to maintain BUY on Wipro with a target price of Rs 285/share.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.

Related Articles