Hold Wipro, target price Rs 680: Emkay Global

Emkay Global has hold call on Wipro with a target price of Rs 680. The current market price of Wipro Ltd. is Rs 638.95.

Time period given by analyst is one year 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 352992.16 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 30-09-2021, the company reported a Consolidated Total Income of Rs 20173.60 Crore, up 5.92 % from last quarter Total Income of Rs 19045.30 Crore and up 28.89 % from last year same quarter Total Income of Rs 15651.40 Crore. Company reported net profit after tax of Rs 2931.60 Crore in latest quarter.


Investment Rationale
The company has delivered a strong operating performance in the last few quarters on the back of demand tailwinds, a simplified operating model and a focused market approach. However, the valuation remains rich, not leaving any margin of error. It retains Hold with a Sep’22 TP of Rs680 at 25x Sep’23E EPS.

Promoter/FII Holdings
Promoters held 73.02 per cent stake in the company as of 30-Sep-2021, while FIIs owned 9.69 per cent, DIIs 2.06 per cent.