Wipro Share Price Target Forecast by Brokerage houses and investment firms

wipro

14 JANUARY 2022

Sharekhan recommends holding Wipro with a target price of Rs 750.

Sharekhan rated Wipro a Hold in a research note dated January 13, 2022, with a target price of Rs 750.

The amount of revenue increased in Q3FY22 fell short of our estimates, although the EBIT margin matched our targets. In spite of a healthy client mining, deal pipeline, and net employee increases, attrition increased. As expected, management forecast revenue growth of 2-4 percent q-o-q for Q4FY2022. The organic growth rate is expected to be between 1.4 and 3.4 percent. Company margins are expected to be impacted in the short term by supply-side issues, skill-based premiums, amortization expenditures from recent acquisitions, increasing discretionary spending, and investments in frontline sales. For FY2022, the management plans to keep the EBIT margin in a tight range of 17-17.5 percent.

Outlook

In spite of Wipro’s progress, we believe its 23x FY2024E valuation significantly undervalues its future growth potential. As a result, we keep Wipro on Hold with a PT of Rs. 750 unchanged.

moneycontrol.com is the source for this information.

06 JANUARY 2022

HDFC Securities has added Wipro with a target price of Rs 750.

HDFC Securities recommended an add call for Wipro with a target price of Rs 750. The current price of Wipro Ltd. is Rs 708.9. According to the analyst, Wipro Ltd.’s price can reach a stated target in one year.

The Wipro Ltd. company was founded in 1945 and has a market capitalization of Rs 391056.45 crore.

For the fiscal year ending March 31, 2021, Wipro Ltd.’s primary products/revenue segments are Software Services, Networking, Storage equipment, Servers, and Software Licenses.

Financials

The firm reported a Consolidated Total Income of Rs 20173.60 Crore for the quarter ended September 30, 2021, up 5.92 percent from the previous quarter’s Total Income of Rs 19045.30 Crore and up 28.89 percent from the same quarter last year’s Total Income of Rs 15651.40 Crore. In the most recent quarter, the company generated a net profit after tax of Rs 2931.60 crore.

FII Holdings/Promoter

As of September 30, 2021, promoters owned 73.02 percent of the firm, FIIs 9.69 percent, and DIIs 2.06 percent.

economictimes.com is the source for this information.

21 DECEMBER 2021

Emkay Global Financial recommends holding Wipro with a target price of Rs 700.

Emkay Global Financial recommended a hold rating on Wipro with a price target of Rs 700 in a research note dated December 20, 2021.

As part of the agreement, Wipro will pay USD230 million in cash (5.2x EV/Sales on CY20 sales) to acquire 100 percent ownership of Austin-based cybersecurity consulting firm Edgile LLC (Edgile). Edgile focuses on risk and compliance, information and cloud security, and digital identity.

Outlook

A Hold rating is assigned to the company with a target price of Rs700 at 25x Dec’23E earnings.

Moneycontrol.com is the source for this information.

23 NOVEMBER 2021


Sharekhan: Wipro Share Price Target 2022; HOLD For Rs 750

Sharekhan recommended a HOLD rating for Wipro on November 22, 2021, with a target price of Rs 750 in his research report.

The company has achieved significant success on its strategic targets, which include accelerated revenue growth, aggressive senior talent recruitment, increased momentum to win big deals, a substantial cloud pipeline, and a weak organizational structure. As an industry leader, Wipro strives to serve as a leading technology facilitator or provider of new business models for customers. In spite of Wipro’s tremendous progress in its recovery, we believe its growth potential is limited by its 23x FY2024E valuation. The CAGR for USD sales growth in FY2022-FY2024E is expected to be 10.4 percent.

Outlook

We maintain our hold on Wipro with an unchanged pt of Rs. 750 due to an adverse risk-reward ratio and near-term supply-side difficulties.

Moneycontrol.com is the source for this information.

22 NOVEMBER, 2021

Motilal Oswal: Wipro Share Price Target 2022; Neutral For Rs 710

In a research report published on November 21, 2021, Motilal Oswal advised a neutral rating on Wipro with a target price of Rs 710.

WPRO had an Investor Day, which we attended. According to management, growth will continue at a steady pace with stable margins. The demand environment, according to management, is robust and wide. In all industry areas, there is strong demand. Within regions, the earlier growth engine – the Americas – is still growing, but Europe (especially continental Europe) is accelerating rapidly.

WPRO intends to be the go-to cloud orchestrator for clients, allowing them to work with both customers and hyper scalers. It stated that it will invest $1 billion in expanding its FullStride cloud service and that it will continue to invest in additional high-growth sectors.

Power growth is projected through investments in sales channels such as 1) lateral leadership (80% in market-facing roles), 2) a big deal team, and 3) strategic alliances. WPRO was able to win 22 market deals as a result of the Capco purchase. It has experienced a gain in wallet share across big BFSI clients and has been able to open up substantial prospects with clients where it was previously unable to satisfy criteria.

Outlook

We retain our neutral posture since, in our estimations and evaluations, a successful transition from its expansion is appropriate. Our target price is equal to 28 times FY23E EPS.

Moneycontrol.com is the source for this information.

22 NOVEMBER, 2021

Prabhudas Lilladher: Wipro Share Price Target 2022; Buy For Rs 728

Prabhudas Lilladher is bullish on Wipro, with a BUY rating and a target price of Rs 728 in his November 22, 2021 research report.

Wipro is progressing well on its new strategic imperatives: 1) BOLD (CAPCO, one of the largest consulting acquisitions, is doing well with 22 combined deal wins and 45 deals in the pipeline) 2) A high-performance culture (incentives for top performers have been enhanced by a factor of two) and 3) a stronger relationship with consumers (60 percent of leadership in local markets, proximity to customers, increased number of global account executives).

Over the previous four quarters, the new CEO’s laser focus on growth has resulted in major deal TCV growth of 80%. The demand pipeline, according to management, is at its greatest level in recent memory. Wipro aspires to be an orchestrator, delivering business outcomes through a combination of consulting, industry-specific, and cloud skills. Wipro is investing heavily in the cloud ($1 billion in full-strength cloud services), cybersecurity, data, and engineering-led solutions. With a CQGR of 6.4 percent on a TTM basis and a cloud-related pipeline accounting for 1/3 of the overall pipeline, cloud revenue has been a big driver to growth.

Wipro wants to keep its profits while investing in personnel for future technology capabilities and expansion. With an upgraded fresher hiring engine (targeting 17.5K freshers in FY22 and 25-30K freshers in FY23) and stronger performance-based incentives, it is generating huge talent. It’s also leveraging the Topcoder platform as a talent cloud, removing the risk of hiring and allowing users to access talent at any time.

Wipro wants to keep its profits while investing in personnel for future technology capabilities and expansion. With an upgraded fresher hiring engine (targeting 17.5K freshers in FY22 and 25-30K freshers in FY23) and stronger performance-based incentives, it is generating huge talent. It’s also leveraging the Topcoder platform as a talent cloud, removing the risk of hiring and allowing users to access talent at any time.

Wipro wants to keep its profits while investing in personnel for future technology capabilities and expansion. With an upgraded fresher hiring engine (targeting 17.5K freshers in FY22 and 25-30K freshers in FY23) and stronger performance-based incentives, it is generating huge talent. It’s also leveraging the Topcoder platform as a talent cloud, removing the risk of hiring and allowing users to access talent at any time.

Outlook

Wipro’s DCF TP is 728 (implied target multiplier of 24.6x P/E based on FY24 EPS). Wipro is presently selling at 25.3x/22 times FY2013/24E earnings of 25.7/29.7, respectively, with a revenue/EPS CAGR of 12 percent/16.4% for FY 2012-24. BUY should be maintained.

Moneycontrol.com is the source for this information.

22 NOVEMBER, 2021

Emkay Global Financial: Wipro Share Price Target 2022; HOLD For Rs 680

Wipro was given a HOLD rating by Emkay Global Financial in its research report dated November 20, 2021, with a target price of Rs 680.

Wipro underlined its strategy of focusing on five key areas to boost revenue growth at its analyst meeting. Over the last few quarters, a simpler operational model and a focus on priority markets have resulted in improved growth performance. Wipro’s gamble on the cloud ecosystem has paid off, with revenue increasing by 6.4 percent CQGR over the last four quarters.

It currently generates 30% or more of revenue and accounts for 1/3 of the overall transaction pipeline. Wipro intends to invest USD1 billion over the next three years to drive its growth. On the strength of benefits through pyramid reduction, more outsourcing, and revenue acceleration-led operating leverage, Wipro anticipates margins to be maintained at current levels, which will be reinvested in domain and solutions capabilities, M&A, and the front-end sales force.

Outlook

Demand tailwinds, a simpler operational strategy, and a focused market forecast have all contributed to the company’s outstanding operating success in recent quarters. The value, on the other hand, remains high, leaving little space for mistakes. With a Sep’22 TP of Rs.680, we retain a HOLD on 25x Sep’23E EPS.

Moneycontrol.com is the source for this information.

18 OCTOBER 2021

ICICI Direct recommends buying Wipro with a price target of Rs 815.

ICICI Direct is optimistic on Wipro, recommending a buy rating on the company with a target price of Rs 815 in a research note dated October 18, 2021.

Wipro is a BFSI, Health, Consumer, Energy & Utility, Technology, and Communication IT, Consulting, and BPO firm. It employs 190000 people to serve consumers on six continents, with a 70 percent pay rate and an 89 percent OCF to EBITDA ratio.

Outlook

On strong transaction momentum, especially on large agreements, we retain a BUY rating. Wipro is valued at Rs 815 (29x P/E) based on FY23E EPS.

Moneycontrol.com is the source for this information.

18 OCTOBER 2021

KR Choksey recommends buying Wipro at a target price of Rs 794.

On October 14, 2021, KR Choksey suggested a cumulative rating on Wipro with a target price of Rs 794 in his research report.

The Q2FY22 performance of Wipro Limited (WPRO) was somewhat better than expected. Dollar sales increased 6.8% quarter on quarter and 8.1 percent quarter on quarter in CC terms to USD 2,580 million, led by Capco and Ampion (KRChoksey est. USD 2,569Mn). Rupee income increased 2.9 percent year on year to INR 1,96,674 million (KRChoksey est. INR 1,90,281Mn).

The reported operating margin increased 54 basis points to 17.7% in QoQ, owing to strong contract wins and topline, which were somewhat offset by the M&A effect and two-month compensation hikes for senior executives. Higher net operating income with a margin of 14.9 percent drove reported net profit up 18.9% YoY to INR 29,306Mn (KRChoksey estimated INR 27,591Mn).

Wipro reported a TCV of USD580 million in 2QFY22, down 19 percent from the previous quarter. The deal TCV in 1HFY22 is up 19 percent year over year. In the foreseeable future, margins will be kept under control due to a scarcity of available talent. Higher offshoring, utilization, and operating leverage offset this. BFSI (+12.5 percent QoQ), communications (+8.9 percent QoQ), the consumer (+7.7 percent QoQ), and health (+5.5 percent QoQ) were the main drivers of growth in the US and Europe.

The transaction pipeline is still solid, with a decent mix of significant agreements, and the company has resurrected its growth engine, aligning its organic growth with that of larger competitors. Our target price of Rs 794 is based on a 26x Mar-24E EPC and a 14.6 percent EPC CAGR over FY22-24E.

Outlook

On FY23E/FY24E earnings, Wipro is now trading at a P/E multiple of 25.5x/23.2x. We expect strong transaction momentum across the vertical, a growth-focused and client-centric approach, and the new management strategy to help drive development in the medium to long term, hence we predict a P of 26x for an expected EPC of Rs 30.5 in FY24.

Reach a goal price of INR 794 per share (up from a previous aim of INR 693), which is 12% higher than the current market price. As a result, we have upgraded our stock rating from “HOLD” to “ACCUMULATE.”

Moneycontrol.com is the source for this information.

14 OCTOBER 2021

Buy Wipro with a price target of Rs 728 per share: Lilladher Prabhudas

IT services sales of $2.58 billion were up 8.1 percent year over year in CC and 6.9 percent year over year in USD, exceeding our and oppo’s expectations (Ple: 6.6 percent, Cons: 6.4 percent ). Organic growth was also significant, with a QoQ CC of 4.6 percent. From US$154 million in Q1FY22, the Capco acquisition contributed well to US$236 million in sales (for two months). Growth was widespread across industries and marketplaces.

Wipro secured nine significant transactions this quarter with TCVs of roughly $580 million ($715 million in 1Q21). ACV increased by 28 percent year over year in H1FY22, while TCV increased by 19 percent. Due to the lack of large or substantial acquisitions, TCV was lower on a quarter-over-quarter basis. The management, on the other hand, is optimistic about a healthy demand environment, with pipeline quality rising each quarter.

Despite headwinds from the Capco and Empion acquisitions, consolidated EBIT margin remained stable at 17.3 percent, -111bps QoQ (Ple: 17.4 percent, 16.8 percent). Starting September 21, employees will get a rise in pay of 80%, as well as a sales investment. In Q3FY22, the entire 3-month impact of the increase will be obvious. The margin beat was led by a Rs 673 million drop in D&A (contributing 60 basis points to margins) as intangibles for certain older acquisitions were completely amortized.

With a net headcount of 11,475, up 5% from the previous quarter, hiring remained solid. Due to strong demand for talent, LTM attrition increased by 500bps QoQ to 20.5 percent. Attrition is projected to rise further over the following three quarters before stabilizing, according to management. With a net headcount of 11,475, up 5% from the previous quarter, hiring remained solid. Due to strong demand for talent, LTM attrition increased by 500bps QoQ to 20.5 percent.

Attrition is projected to rise further over the following three quarters before stabilizing, according to management. With a net headcount of 11,475, up 5% from the previous quarter, hiring remained solid. Due to strong demand for talent, LTM attrition increased by 500bps QoQ to 20.5 percent. Attrition is projected to rise further over the following three quarters before stabilizing, according to management.

Outlook

We arrive at a Goal Price of 728 based on the DCF model (implied target multiplier of 24.6x P/E at FY24 EPS). For FY22/23E earnings of INR25.7/29.7, Wipro is now trading at 26.2X/22.7X. Earnings/EPS are increasing at a CAGR of 16.9% and 15.8% for FY 21-24, respectively. Keep what you buy.

Moneycontrol.com is the source for this information.

14 OCTOBER 2021

Motilal Oswal has set a price target of Rs 710 for Wipro’s stock.

In 2QFY22, WPRO reported a significant (8.1 percent QoQ CC) revenue increase in IT Services, above our forecast of 6.9%. Organic growth of 4.5 percent quarter over quarter (minus Capco) also outperformed our expectations. Management emphasized that 2QFY22 saw wide growth, notably with Capco, which has been delivering ahead of schedule. Despite the impact of M&A and wage rise, the EBIT margin in IT Services remained unchanged QoQ at 170bp, or 17.8%, exceeding our expectations (excluding lump sum in 1QFY22).

It had a TCV of USD580 million in 2QFY22, up 19 percent from the previous quarter. The deal TCV in 1HFY22 is up 19 percent year over year. Despite hiring 11.5k people (5.5 percent of its 1QFY22 workforce), supply constraints continue to influence WPRO’s operational KPIs, with 500bp QoQ growing to 20.5 percent and utilization (excluding trainees) at 89.2 percent (+240bp QoQ). Is.

Attrition is expected to rise further in 3QFY22, with management estimating that it would take many quarters to stabilize. The 2-4 percent QoQ revenue growth outlook for 3QFY22 (including the impact of the Ampion acquisition) was in line with our expectations. Given supply restrictions and seasonality, we see guidance as positive, but we remain cautious on margins as the firm continues to perform above its 17-17.5 percent range.

We now anticipate a 28% increase in IT services revenue in the fiscal year 2012. (19.5 percent YoY organic growth). We have revised our FY22E/FY23E EBIT margin estimate by 100bp/30bp due to better-than-expected margin performance, resulting in a 13 percent improvement in FY21-23E PAT. Given supply restrictions and seasonal circumstances, keep an eye on margins as the firm continues to exceed its 17-17.5 percent projection.

We now anticipate a 28% increase in IT services revenue in the fiscal year 2012. (19.5 percent YoY organic growth). We have revised our FY22E/FY23E EBIT margin estimate by 100bp/30bp due to better-than-expected margin performance, resulting in a 13 percent improvement in FY21-23E PAT. Given supply restrictions and seasonal circumstances, keep an eye on margins as the firm continues to exceed its 17-17.5 percent projection.

We now forecast a 28% increase in IT services revenue in fiscal 2022. (19.5 percent YoY organic growth). We have revised our FY22E/FY23E EBIT margin estimate by 100bp/30bp due to better-than-expected margin performance, resulting in a 13 percent improvement in FY21-23E PAT.

Outlook

Management’s growth plan, continuing investment in talent, and a simpler operational model to assist focus on customers have begun to pay off and will underpin values, although the current price of 27x FY23E P/E represents a big improvement. It’s time to bake.

To account for stronger growth, we’ve raised our FY22E/FY23E EPS forecast to 7%/2 percent. We keep our neutral position because we believe the present value is reasonable. Our target price corresponds to 28 times FY23E EPS.

Moneycontrol.com is the source for this information.

14 OCTOBER 2021

Hold Wipro for a Rs 750 share price target: Sharekhan

Despite pay revisions, the impact of acquisitions, and expenditures in capacity creation, Q2 sales growth easily exceeded forecast; margins have gone positive. The workforce expanded, with high net employee growth and utilization. As predicted, management forecasted revenue growth of 2-4 percent QoQ in Q3FY2022, driven by broad-based demand and a robust transaction pipeline.

In the first half of FY 2022, deal TCV increased by 19 percent, and the cloud pipeline surpassed $8 billion. While Wipro is making tremendous headway in its recovery, we believe the 27x FY2023E value reflects the company’s growth potential. The CAGR of USD revenue growth between FY2021 and FY2024E is expected to be 15.3 percent.

Outlook

Due to projected margin erosion in H2FY2022 and an unfavorable risk-reward ratio, we retain a tight hold on Wipro with a Revised Target Price of Rs. 750.

Moneycontrol.com is the source for this information.

14 OCTOBER 2021

After the Q2 results, should investors buy, sell, or keep Wipro Share Price Target?

Wipro’s stock hit a 52-week high of Rs 722.80 in early trade on October 14, up more than 7%, following the company’s September quarter earnings announcement on October 13.

Wipro reported a consolidated net profit of Rs 2,930.7 crore for the quarter ended September 2021, a decrease of 9.6% due to a contraction in margins after pay hikes and amortization expenses related to the Capco purchase.

The profit, on the other hand, increased by 18.9% as compared to the same quarter of the previous financial year.

Gross revenue increased by 7.8% sequentially to Rs 19,760.7 crore and by 30.1 percent year over year (YoY).

The IT services operating margin for the September 2021 quarter was 17.8%, down 104 basis points from the previous quarter and 140 basis points year over year.

Following the September quarter reports, here’s what overseas brokerages had to say about the stock and the company:

UBS | Neutral rating | Rs 660 target

Lower TCV offset margins are positive, although Q2 sales and Q3 forecasts are in line.

UBS anticipates a modest reaction to the stock due to the in-line forecast and reduced TCV.

Macquarie | Outperform rating | Rs 780 target raised

Macquarie kept the rating despite a drop in sales in the second quarter due to solid execution.

The deal wins are still solid, according to Macquarie, with a victory of USD 580 million in Q2 pushing up EPS projections for FY 22-24 by 2-3%.

JPMorgan | Neutral rating | Rs 670 target

In FY2022-24, JPMorgan increased revenue by 1% while maintaining margins.

We are cautious due to a lack of consistent performance history and the fact that we are skipping significant deals, and the absolute valuation of 29x keeps us neutral.

Wipro was up to Rs 47.95 or 7.13 percent at Rs 720.50 on the BSE at 09:22.

Moneycontrol.com is the source for this information.

Disclaimer: The views and investment tips expressed by investment experts on investinginsights.in are Sourced From Brokerage Firms Research Reports & Market Experts Opinions. We advise users to consult their investment advisor before making any decisions.

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