Wipro Q4 Review - Green Shoots In Discretionary Spend But Do Not Reflect In Revenue Guidance: ICICI Securities

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Wipro Ltd. has reported in-line earnings in Q4 FY24, with better execution at margin front. Bookings were strong at $3.6 billion. IT services Ebit margin was impressive, up 40 bps QoQ, despite headwinds from wage hikes and revenue decline. Highlights from Q4 include:Recovery in Capco andnew CEO’s strategy of doubling down on execution. .We are sceptical on Capco growth, which appears more like positive seasonality and a result of low base effect. We presume the CEO’s strategic pivot towards better execution and large deal focus as a long-term play and see limited positive triggers in short-medium term as Wipro’s portfolio carries a high discretionary component (reflected in muted FY25 revenue guidance of -1.5% to 0.5%). We value Wipro at 16 times (unchanged), on FY26E earnings per share of Rs 26 (FY25-26E EPS kept largely unchanged) to arrive at our target price of Rs 410 (versus Rs 397 earlier). We revise the rating to Reduce (from Sell earlier) as the stock has reduced more than 7% over last month and we see limited downside from hereon..Click on the attachment to read the full report:.Wipro Q4 Results Review - Stable Performance, Need More Consistency: Prabhudas Lilladher.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Wipro Q4 Review - Green Shoots In Discretionary Spend But Do Not Reflect In Revenue Guidance: ICICI Securities

Margin for FY25E is likely to be rangebound.

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Wipro Q4 Review - Green Shoots In Discretionary Spend But Do Not Reflect In Revenue Guidance: ICICI Securities

Margin for FY25E is likely to be rangebound.

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