Wipro Q3 Review — Result Beat; Commentary Seeing Improvement; Dolat Capital Maintains 'Reduce' On The Stock

Wipro's key segment driving Q3 beat was health (14.7% of revenue), which grew 6.7% QoQ in constant currency (only health has delivered YoY growth in past 15 quarters, in mid to high single digits)..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. .Dolat Capital Report.Wipro Ltd.’s IT services saw flattish constant currency revenue QoQ growth of 0.1% (our estimate -0.8%), mainly led by health BU, up 6.7% QoQ, while banking, financial services and insurance, consolidated and tech and communication declined 1.9%/0.9%/0.6% in CC terms due to seasonal factors. I.T services operating profit margin stood at 17.5%, up 68bps QoQ (our estimate: 15.6%) with beat led by continued operating efficiency across biz. lines. Total contract value wins/large deal wins at $3.5 billion/$0.96 billion were healthy, but Q4 guidance of -1% to 1% CC growth reflects cautious optimism. While the commentary on discretionary spends and pipeline is constructive for Q2, it may be early to call a secular trend across verticals.We raise our FY25E/FY26E/FY27E earnings by 7.4%/2.9%/1.2% noting improved OPM performance. However, despite few positives, we believe that a clear and convincing recovery is necessary and that current valuations are still pricey. Therefore, we maintain ‘Reduce’ rating with target price of Rs 300 at 23 times FY27E earnings..Click on the attachment to read the full report:.Wipro Q3 Results Review — Motilal Oswal Reiterates 'Neutral' Stance On The Stock; Here's Why.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 Q3 Review — Result Beat; Commentary Seeing Improvement; Dolat Capital Maintains 'Reduce' On The Stock

Despite few positives, the brokerage believes that a clear and convincing recovery is necessary and that current valuations are still pricey.

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Wipro Q3 Review — Result Beat; Commentary Seeing Improvement; Dolat Capital Maintains 'Reduce' On The Stock

Despite few positives, the brokerage believes that a clear and convincing recovery is necessary and that current valuations are still pricey.

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