WIPRO LTD.

COMPANY PROFILE

Wipro Limited began its business as a vegetable oil manu- facturer in 1945. During 1980s, Wipro entered the Indian IT industry by manufacturing and selling mini computers. Today, the Company is a global IT major which offers ser- vices to various sectors including financial services, retail, transportation, manufacturing, healthcare , energy and utilities, technology, telecom and media.

The Company is headquartered in Bangalore and operates through 72 plus global delivery centers in over 54 coun- tries. For FY 2014, the Company’s total income from op- erations grew by 16.76 % to Rs. 39,133.30 Cr. as against Rs. 33,517.30 Cr. in FY 2013. For the same period, net profit went up by 30.75 % to Rs. 7,387.40 Cr. as against Rs. 5,650.20 Cr. in FY 2013. 50.7% of the overall revenue of the Company comes from U.S., followed by 28.6% from Europe, 8.9% from India and Middle East, 11.7% from the Asia Pacific and other emerging markets. The Company’s BFSI (Banking & Financial Services Industry) domain con- stitutes 26.6% of its total revenue.

 
STOCK INFORMATION

STOCK PRICE

586.85

TARGET PRICE

560-520

SECTOR

COMPUTER/SOFTWARE

SYMBOL (AT NSE)

WIPRO

ISIN

INE075A01022

FACE VALUE (IN RS.)

2.00

BSE CODE

507685

 
STOCK FUNDAMENTALS

MARKET CAP

144,824.59

BOOK VALUE

118.90

EPS - (TTM) (IN RS. CR.)

34.04

P/E

17.23

INDUSTRY P/E

24.22

 
Cross currency stress to persist in IT cos Q4 numbers:

March quarter earnings of IT services players are likely to reflect continued cross-currency pressure, usual delays in project ramp-up at the beginning of the calendar year and challenges related to weather patterns in North America. We expect management commentary to be cautious given the uncertain macro environment in developed markets, and volatility in commodity and currency mar- kets.

However, discretionary spend pipeline in the US and out- sourcing pipeline in Europe will remain as the positive trends, Modest volume growth, business investments and cross-currency headwinds would be key margin dampen- ers in Q4FY15. We expect most of the companies to indi- cate low-teens growth in FY16, which would be in line with NASSCOM guidance of 12-14 percent. We Expect FY 16-17 lower earnings for the top 4 players and 3-10 per- cent for others to build in the cross-currency headwind and weaker volume growth.

 
SHAREHOLDING PATTERN
Wipro Ltd Shareholding Pattern
 
RESULTS (Quarterly )(Rs CR.)

 

DEC' 14

SEP' 14

JUN' 14

MAR 14

DEC' 13

Sales

10,521.20

10,358.20

10,104.10

10,401.80

10,069.10

Operating profit

2,376.40

2,362.90

2,441.90

2,732.30

2,494.90

Interest

145.00

49.40

81.90

94.30

92.40

Gross profit

    2,789.00

    2,780.50

   2,830.40

   3,158.20

    2,843.60

EPS (Rs)

8.07

8.07

8.38

9.54

8.31

 
TECHNICAL VIEW

Wipro Ltd Technical View

WIPRO FUTURE is looking weak on charts, short build up has been seen, we may see more downside, if it sustains below 600 levels. We advise selling around 590-600 levels with strict stop loss of 625 for the targets of 560-520 levels.

SYMBOL

VALUE

ACTION

RSI(14)

34.410

SELL

STOCH(9,6)

14.177

OVERSOLD

STOCHRSI(14)

54.015

NEUTRAL

MACD(12,26)

-6.510

SELL

ADX(14)

64.908

SELL

WILLIAMS %R

-92.037

OVERSOLD

CCI(14)

-102.4002

SELL

ATR(14)

5.1250

LESS VOLATILITY

HIGH/LOWS(14)

-2.8607

SELL

ULTIMATE OSCILLATOR

36394

SELL

ROC

-1.453

SELL

BULL/BEAR POWER()13

-12.0760

SELL

BUY: 0 SELL: 8 NEUTRAL: 3

SUMMARY : STRONG SELL

Our Other Recommendation for Next Week

SCRIP

ACTION

CMP

ENTRY

SL

TGT

TIME FRAME

HINDALCO

BUY

140.05

140-142

137

144-148

ONE WEEK

JSWSTEEL

BUY

960.6

960-970

950

980-1000

ONE WEEK

IDBI

BUY

82.2

80-82

78

84-85

ONE WEEK

INDUSIND BANK

SELL

880.2

890-900

920

870-850

ONE WEEK

UPL

SELL

430.95

435-440

450

420-405

ONE WEEK

Performance of Previous Week

SCRIP

LOT

ACTION

ENTRY

SL

TGT

P&L

REMARK

CLOSE/LOW/HIGH

SSLT

1000

BUY

195-200

185

210-220

10000.00

FIRST TGT HIT

211.35 / 213.80

TATA STEEL

500

BUY

340-345

330

355-370

6500.00

NEAR TGT

347.10 / 353.95

ASIAN PAINT

500

BUY

845-855

835

865-880

5000.00

FIRST TGT HIT

821.15 / 868.85

VOLTAS

1000

BUY

304-308

300

312-316

-4000.00

SL TRG

295.60 / 311.40

SBIN

1250

BUY

278-280

274

284-288

0.00

NOT OPEN

291.95 / 295.50

RECL

1000

BUY

340-345

332

352-360

-8000.00

SL TRG

331.60 / 349.95

NET PROFIT

 

 

 

 

 

9500.00

 

 

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DISCLAIMER

This report is only for the information of our customers. Recommendations, opinions, or suggestions are given with the understanding that readers acting on this information assume all risks involved. The information provided herein is not to be construed as an offer to buy or sell securities of any kind. ATS and/or its group companies do not as assume any responsibility or liability resulting from the use of such information.

 

 

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