Buy Wipro, target price Rs 390: Centrum Broking

Centrum Broking has given a buy rating to Wipro with a target price of Rs 390. The share price moved down by 2.67 per cent from its previous close of Rs 350.15. The stock’s last traded price is Rs 340.80.

Wipro Ltd., incorporated in the year 1945, is a Large Cap company (having a market cap of Rs 195805.25 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 -.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
While medium term upsides could be muted, the brokerage believes pace of gradual turnaround in growth profile and margin trajectory can drive upgrades over next twelve months. It has upgraded Wipro in June 2020 and possible growth turnaround and buyback trigger.

Promoter/FII Holdings
Promoters held 74 per cent stake in the company as of June 30, 2020, while FIIs held 7.8 per cent, DIIs 2.8 per cent and public and others 15.4 per cent.