Neutral on Wipro, target price Rs 385: Motilal Oswal

Motilal Oswal has given a neutral rating to Wipro with a target price of Rs 385. The share price moved down by 5.96 per cent from its previous close of Rs 375.75. The stock’s last traded price is Rs 353.35.

Wipro Ltd., incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 214834.33 Crore) operating in IT Software sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 15114.50 Crore, up 1.35 % from last quarter Sales of Rs 14913.10 Crore and down 0.07 % from last year same quarter Sales of Rs 15125.60 Crore. The Company reported net profit after tax of Rs 2485.00 Crore in latest quarter.

Investment Rationale
The brokerage upgrades FY21/FY22E EPS by 3%/2%, largely led by a revised revenue outlook based on guidance. It maintains neutral as it awaits further evidence of execution of Wipro’s refreshed strategy and a successful turnaround from its growth struggles over the last decade before turning more constructive on the stock.

Promoter/FII Holdings
Promoters held 74 per cent stake in the company as of June 30, 2020, while FIIs held 8.2 per cent, DIIs 7.6 per cent and public and other 10.1 per cent.