Brokers' Call: Wipro, Sobha Developers

Wipro on Slow Track: Barclays

Barclays Capital has maintained its ‘Underweight’ rating on Wipro and set a target price of Rs 360. Wipro continues its organisational revamp focused on improving its account mining process. Barclays has confidence that the company will be able to match peers’ growth despite the uncertainty in the demand environment. However, it believes that the turnaround could take more time and that the execution risks are not correctly priced.

Sobha a ‘Buy’: Goldman

Goldman Sachs has reiterated the ‘Buy’ rating on Sobha Developers with a target price of Rs 353. Sobha is trading at a 37% discount to March 13 RNAV of Rs 392. Ongoing and future projects provide post-tax cashflow visibility of Rs 3,200 crore against current EV of Rs 3,700 crore. In Q4, Sobha launched two projects in Chennai and is on track to launch another residential project in Bangalore. It is likely to pre-sell residential real estate of Rs 1,650-1,700 crore in FY12 compared to Rs 1,120 crore in FY11.