Motilal Oswal Financial Services neutral on Wipro; Target price Rs 380

Motilal Oswal Financial Services has neutral call on Wipro with a target price of Rs 380.The current market price of Wipro Ltd. is Rs 399.15.

Wipro, incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 217940.57 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 30-09-2022, the company has a total of 549 Crore shares outstanding.

Investment Rationale
The brokerage raises its FY23 and FY25 EPS estimate by 4% but lower its FY24 EPS estimate marginally to factor in weaker growth next year due to a lower exit rate in 4Q. Motilal Oswal maintains its Neutral stance as it views the current valuation as fair. The brokerage's TP implies 16x FY24E EPS.

Promoter/FII Holdings
Promoters held 72.95 per cent stake in the company as of 30-Sep-2022, while FIIs owned 6.96 per cent, DIIs 7.91 per cent.