Wipro, the country’s third-largest IT services company by market capitalisation, rallied to hit a fresh 52-week high of Rs 723.65 on the BSE, a day after it reported a strong revenue growth for the quarter ended September at 8.1 per cent on QoQ and 28.8 per cent on YoY.
Reacting to the results, data collated by Zee Business TV Research Team showed that two global investment banks raised their target price on Wipro post September quarter results.
Macquarie maintains an outperform rating on Wipro and raised its 12-month target price to Rs 780, from Rs 764 earlier. The 2-3% change in FY22-24E EPS was the result of higher revenue.
Wipro’s strong execution led to a revenue beat, said the note. Deal wins remain healthy with US$580 mn of wins in Q2’FY22.
Another global investment bank, Credit Suisse maintains a neutral rating, and raised the target to Rs 725, from Rs 575 earlier.
The IT major reported a strong beat on the revenue growth. The operating margin beat was led by lower amortisation expense. The global investment bank increased FY22E/23E/24E EPS by 1%, 4%, 8%, respectively.
Wipro recorded net income of Rs 29.3 billion ($395.2 million) for the reporting quarter, an increase of 18.9 per cent YoY, while Earnings Per Share (EPS) for the quarter was at Rs 5.36 ($0.071), an increase of 23.8 per cent YoY.
The company said that it expects revenue from our IT services business to be in the range of $2,631 million to $2,683 million. This translates to a sequential growth of 2.0 per cent to 4.0 per cent.
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