We rule out further near-term rerating for Wipro, but the sweet spot for the sector makes it a stock to buy on declines
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
Wipro’s (CMP: Rs 691; Market Cap: Rs 378,950 crore) Q3FY22 performance was weaker than expected, especially on the execution front, although the commentary on demand and deal wins was strong. On talent crunch, there was optimism on the situation improving but the company was less assertive than other large-cap peers. The stock has had a stellar rerating, post the change in management and return of the growth trajectory. Still, it’s away from the premium valuation league. To reach that level, Wipro…
