Buy Wipro, target price Rs 675: Axis Securities

Axis Securities has buy call on Wipro with a target price of Rs 675. The current market price of Wipro Ltd. is Rs 601.8.
Time period given by analyst is 9 months when Wipro Ltd. price can reach defined target.

Wipro Ltd., incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 332385.01 Crore) operating in IT Software sector.


Wipro Ltd. key Products/Revenue Segments include Software Services, Networking, Storage equipment, Servers, Software Licenses for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-12-2021, the company reported a Consolidated Total Income of Rs 20791.50 Crore, up 3.06 % from last quarter Total Income of Rs 20173.60 Crore and up 27.37 % from last year same quarter Total Income of Rs 16324.10 Crore. Company reported net profit after tax of Rs 2964.70 Crore in latest quarter.

Investment Rationale
Wipro Ltd (Wipro) delivered a strong performance on all fronts with revenue growth stood at Rs 20,313 Cr, up 3.1% QoQ and 27% YoY in CC terms. Operating profit grew robust 30.8% YoY to Rs 3,492 Cr, aided by better executions, better employee management and service mix. However, the operating margin declined by 20bps at 17.6% QoQ. Net profit for the quarter reported a growth of 34% YoY as it stood at Rs 2,972 Cr. The company’s management has given Q4FY22 guidance of 2%-4% revenue growth in CC terms and its commentary continues to be positive in the verticals such as BFSI, Hi-tech Media, Life Sciences, and Communications.

Promoter/FII Holdings
Promoters held 73.01 per cent stake in the company as of 31-Dec-2021, while FIIs owned 9.34 per cent, DIIs 2.77 per cent.