Broker's Call: Wipro (Buy)

BL Chennai Bureau | Updated on: Apr 05, 2022

Axis Securities

Target: ₹675

CMP: ₹599.4

Wipro Ltd is India’s one of the largest IT services exporter and has a strong global presence. It provides industry-wide solutions including next-gen services like Cloud Computing, Digital Transformations, IoT, Machine Learning, and ADM, among others. Wipro also has expertise in providing solutions in banking and financial and other services through its product and platform portfolio.

Digital transformations are a need of an hour considering data maintenance, consistency, and accessing data from remote places becoming key issues during the Covid-19 outbreak. IT service provider’s engagement with its partner network has expanded beyond certifications into setting up of co-innovation centers, building industry solutions, ISV partnerships, and joint sourcing of deals. These partnerships play a significant role in implementation, rollouts & upgrades, validation, and support services.

The recent deal trend continues to be robust for Wipro and is reflective of traction in the BFSI and verticals, Retail & CPG, and Manufacturing. Wipro will continue to invest in Its digital product and services. We believe the Covid-19 outbreak will create a huge opportunity across geographies for Wipro to post strong organic growth across verticals.

Wipro deal pipeline remained industry-leading in Q3FY22 at $600 million. Wipro won many large transformation deals despite uncertainty across verticals such as the BFSI, communication, manufacturing, and automobile.

We recommend a Buy with TP of ₹675/share.

Published on April 05, 2022
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