Wipro Q4 Results Review - Inline; Weak Outlook: Axis 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..Axis Securities Report.In Q4 FY24, Wipro Ltd.’s reported revenue stood in line with our expectations at Rs 22,208 crore, flat QoQ and 5.9% QoQ (in CC terms). The company reported operating profits of Rs 3,287 crore, flat on a QoQ basis. However, its operating margins expanded in line with our expectations and stood at 15%, largely led by cost optimisation. The company’s net profit stood at Rs 2,858 crore, registering a growth of 6% QoQ. .Outlook From a long-term perspective, we believe Wipro has a strong deal pipeline and superior financial structure. However, it lags in execution capabilities to capitalize on growth as compared to peers. Moreover, rising concerns over the prospects of large economies along with prevailing supply-side constraints pose uncertainties over the company’s short-term growth rates..Valuation and recommendation Against this backdrop, we recommend a Sell rating on the stock and assign a 16 times price/earning multiple to its FY26E earnings of Rs 24.6/share to arrive at a target price of Rs 405/share. The target price implies a downside of 11% from the current market price..Key risks to our estimates and target price The uncertain demand environment is influenced by the potential threat of recession from the world’s largest economies. Rising subcontracting costs and cross-currency headwinds may negatively impact the company’s operating margins..Click on the attachment to read the full report:.Wipro Q4 Results Review - New CEO Under The Microscope: Nirmal Bang.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 Results Review - Inline; Weak Outlook: Axis Securities

The company lacks revenue growth visibility, which poses concerns over its growth momentum compared to its peers

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Wipro Q4 Results Review - Inline; Weak Outlook: Axis Securities

The company lacks revenue growth visibility, which poses concerns over its growth momentum compared to its peers

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