Wipro Ltd., incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 197108.66 Crore) operating in IT Software sector.
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Promoters held 74 per cent stake in the company as of Sept 30, 2020, while FIIs held 8.8 per cent, DIIs 7 per cent and public and others 10.2 per cent.
ICICI Direct has given a buy rating to Wipro with a target price of Rs 435. The share price moved up by 0.77 per cent from its previous close of Rs 342.65. The stock’s last traded price is Rs 345.70. Wipro Ltd., incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 197108.66 Crore) operating in IT Software sector.
Financials For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 15114.50 Crore, up 1.35 % from last quarter Sales of Rs 14913.10 Crore and down -.07 % from last year same quarter Sales of Rs 15125.60 Crore Company reported net profit after tax of Rs 2485.00 Crore in latest quarter.
Investment Rationale Wipro, under the new CEO, is addressing some of the past challenges of the company of lower focus on geographies outside US and large deals. In addition, the company’s focus on improving sales and higher investment to drive growth bodes well for revenue growth. Wipro aims to accelerate growth without compromising margins. This, coupled with healthy capital allocation policy, improving tech spends in digital, prompt us to be positive on the company. Hence, the brokerage maintains BUY on the stock with a target price of Rs 435/share (19x FY23E EPS). Key risk is 1) over centralisation, 2) margin sustainability and 3) exodus of talent impacting growth.
Promoter/FII Holdings Promoters held 74 per cent stake in the company as of Sept 30, 2020, while FIIs held 8.8 per cent, DIIs 7 per cent and public and others 10.2 per cent.
