Expect Wipro to correct: Prabhdas Lilladher

MUMBAI: Prabhudas Lilladher expects Wipro to correct after reporting lower-than-expected quarterly results. The stock had run-up in anticipation of strong results and outperformed the Sensex in past two months, the report said.

“The result is below of our and street expectation and guidance is also lack-lusture when compared to TCS and HCL Tech. We reiterate our “Accumulate” rating with a target price of Rs 480. Moreover, the stock could witness correction as stock outperformed Sensex by ~11% since November-11 in anticipation of strong result. We may revisit our number post conference call,” the report said.

Wipro’s revenue grew by 0.6% QoQ to Rs 78.2bn for Q3FY11 in rupee term, whereas IT Services revenue grew by 5.6% QoQ to $1,344mn inline with their guidance of $1,317-1,343m.

The company reported an operating margin expansion of 19bps QoQ to 18.2% despite currency appreciation. The company reported an EPS of Rs 5.39 a growth of 2.1% QoQ.