Bearish on Wipro: Saurabh Mukherjea

ET Now spoke to Saurabh Mukherjea, Head of Equities, Ambit Capital, on Wipro.

What about Wipro’s deal with SAIC because they expect to close the deal in the next one or two months? Would Wipro now be a conviction buy?

A take on Wipro remains that this company is at a strategic crossroads and is somewhat struggling at the strategic crossroads. Wipro is neither becoming the giant size gorilla the TCS is nor is it going the front-end consultancy route that HCL Tech has decided to take. Strategically the company is struggling. Will this acquisition be the beginning of a new charge for Wipro? I do not think so. They have done acquisitions in the past and have struggled to make them work. This is neither that big an acquisition nor are we that confident that this will be EPS accretive in FY12 or FY13, so it is good to see Wipro trying to do something about the rut that it has find itself in but I do not think this acquisition is a watershed in the company’s history.