IDBI Capital upgrades Wipro to 'hold' from 'reduce'

MUMBAI: IDBI Capital has upgraded Wipro to ‘Hold’ from ‘Reduce’ with a target price of Rs410. It said, the management believes that directionally FY14 looks better compared to FY13, largely on improved client sentiment, ease in discretionary spend in the US and efficiency-related work in Europe. In addition to this, the current pipeline supports the management’s belief for better FY14.

However, only a better deal closure can convert these hopes into reality, IDBI Capital said in a client note. Wipro has undoubtedly done a good job in the past 6-7 quarters in client mining (increase in $50 million/$100 million clients). Although there was some activity on discretionary spend in Q3FY13, but the management does not see this as an inflection point,” it said. The stock currently trades at 14.8x/13.9x FY14/FY 15 EPS.