Hold Wipro, target price Rs 420: Sharekhan by BNP Paribas

Sharekhan by BNP Paribas has hold call on Wipro with a target price of Rs 420. The current market price of Wipro is Rs 384.75.

Wipro, incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 211367.15 Crore) operating in IT Software sector.

Wipro key Products/Revenue Segments include Software Services, Networking, Storage equipment, Servers, Software Licenses for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 23867.30 Crore, up 3.55 % from last quarter Total Income of Rs 23049.40 Crore and up 14.79 % from last year same quarter Total Income of Rs 20791.50 Crore. Company has reported net profit after tax of Rs 3062.40 Crore in latest quarter.

The company’s top management includes Mr.Rishad A Premji, Mr.Azim H Premji, Mr.Thierry Delaporte, Ms.Tulsi Naidu, Mr.Deepak M Satwalekar, Dr.Patrick J Ennis, Mr.Patrick Dupuis, Mr.Ireena Vittal. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-03-2023, the company has a total of 549 Crore shares outstanding.

Investment Rationale
Although near term outlook remains uncertain, buyback should support Wipro’s stock price in the near term. Hence, the brokerage maintains its Hold rating on Wipro with unchanged PT of Rs 420. The stock trades at17.7x/15.6x FY24E/FY25E EPS.

Promoter/FII Holdings
Promoters held 72.92 per cent stake in the company as of 31-Mar-2023, while FIIs owned 6.38 per cent, DIIs 8.01 per cent.