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Wipro share hits all-time high on strong Q4 earnings; here's what brokerages say

Wipro stock touched fresh all-time high of Rs.471.75 , rising 9.45% against previous close of Rs 431 on BSE

twitter-logoBusinessToday.In | April 16, 2021 | Updated 12:21 IST
Wipro share hits all-time high on strong Q4 earnings; here's what brokerages say
Wipro share trades higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages

Wipro share hit all-time high today after the IT firm reported earnings that beat expectations.  Wipro stock touched fresh all-time high of Rs.471.75 , rising 9.45% against previous close of Rs 431 on BSE.

The stock has gained 12.15% in last 2 days . The large cap stock opened with a gain of 2.55% at Rs 442 today.

Wipro share trades higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.  The IT stock has gained 150% in one year and risen 22.12% since the beginning of this year.

Market cap of the IT firm rose to Rs 2.57 lakh crore on BSE.

On Thursday, the IT firm reported a 27.7 per cent year-on-year (YoY) rise in its consolidated net profit at Rs 2,972.3 crore in Q4. Sequentially, the company's net profit declined 0.8 per cent from Rs 2,997.8 crore in December quarter.

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The company's revenue climbed 3.4 per cent YoY to Rs 16,245.4 crore in the quarter under review as compared to Rs 15,711 crore in the same period last year. On a quarter-on-quarter basis, revenue rose 3.7 per cent from Rs 15,670 crore in October-December quarter.

During fiscal year 2020-21, the company's net profit rose 11 per cent YoY to Rs 10,796.4 crore, while revenue grew 1.5 per cent to Rs 61,943 crore. Wipro's revenue from IT services segment increased 3.9 per cent QoQ and 3.8 per cent YoY to $2,152.4 million during the March quarter, while operating margin for IT services expanded 344 basis points (bps) to 21 per cent.

Jefferies said revenues rose 3% QoQ in constant currency terms , and margins fell 70 bps. Both came marginally ahead of estimates. Revenue growth was broad-based across markets and verticals. Large deal bookings rose 16% QoQ to US$1.4bn in Q4. It gave a target price of Rs 380.

Wipro Q4 profit jumps 27.7% to Rs 2,972.3 cr; revenue up 3.4%

CLSA in a note said, "Like the aggression the firm has adopted under new management, but multiple moving parts-acquisition activity, large deals & internal restructuring-distort the picture. Given elevated valuations, retain wait & watch stance." The international brokerage gave a target price of Rs 450.

Motilal Oswal said, "We downgrade our FY22E EPS estimate by 6% due to margin headwinds from the Capco acquisition, partially compensated by the lower share count. We maintain our Neutral stance as we view current valuation as fair. Our target price implies 19 times FY23E EPS."

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