Prabhudas Lilladher's research report on Wipro
IT services revenue of $2.41 bn, 12.2% QoQ USD, surpassed top end of the guidance by ~200 bps driven by strong growth in organic (4.9% QoQ USD) as well as inorganic Capco business. (~US$ 157 mn). New management’s focus & aggression towards growth is clearly visible given strong revenue guidance of 5-7% QoQ CC on top of strong 1Q21 implying ~26% FY22 growth. Wipro closed 8 large deals with TCV of over $715 mn. TCV was lower than last two quarters due to absence of large or mega deals. However, management is confident of strong demand environment with quality of pipeline improving every quarter.
Outlook
We value Wipro on Sep-23(roll over) earnings of 25X to arrive at changed TP of INR 678 (earlier: INR637). Wipro is currently trading at 26.2X/22.8X for FY22/23E earnings of INR 21.9/25.2 respectively with Revenue/EPS CAGR of 18%/15% for FY21-23 respectively. Maintain Buy. Please refer our detailed to understand Wipro’s new strategy in detail. (Link of the Report)
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