{"id":1628,"date":"2021-01-14T12:49:42","date_gmt":"2021-01-14T12:49:42","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=1628"},"modified":"2021-01-14T12:49:42","modified_gmt":"2021-01-14T12:49:42","slug":"greater-need-for-technology-across-enterprises-led-to-growth-wipro","status":"publish","type":"post","link":"http:\/\/www.assetmultiplier.co.in\/blog\/2021\/01\/14\/greater-need-for-technology-across-enterprises-led-to-growth-wipro\/","title":{"rendered":"Greater need for technology across enterprises led to growth &#8211; Wipro"},"content":{"rendered":"<p><strong>Update on the Indian Equity Market:<\/strong><br \/>\nOn Thursday, after another volatile session, Nifty 50 ended at 14,596 (+0.2%). Among the sectoral gainers, PHARMA (+0.8%), FMCG (+0.8%), and AUTO (+0.3%) led the gainers, while METAL (-1.0%), MEDIA (-0.2%), and BANK (-0.2%) led the losers. UPL (+3.7%), BPCL (+3.2%), INDUSINDBK (+3.0%) led the index higher while HCLTECH (-2.4%), GRASIM (-1.8%), and JSWSTEEL (-1.7%) led the laggards.<\/p>\n<p><strong>Wipro recently declared strong 3QFY21 numbers. Mr. Jatin Dalal, President and Chief Financial Officer (CFO) explained that a greater need for technology by clients across enterprises led to growth. The interview was published in Business Standard on 14th January 2021:<\/strong><\/p>\n<p>\u2022 A greater need for technologies like cloud, cybersecurity, and data analytics contributed to a strong set of numbers. With most business models becoming virtual has meant that greater investment in technology is taking places across Wipro\u2019s customer base.<br \/>\n\u2022 Of Wipro\u2019s seven business units, five delivered over 4 % sequential growth which suggests broad based growth.<br \/>\n\u2022 Over 92 percent staff is still working from home, which is not going to change in 4QFY21. About 2.5 percent staff is working from office, and about 5 percent staff is working from customer locations.<br \/>\n\u2022 Depending on the situation in April vis-\u00e0-vis Covid, they will think about the eventual model for employees working from home or office.<br \/>\n\u2022 There was double digit growth in order bookings in 3QFY21 and Wipro is entering the March quarter with a good set of pursuits.<br \/>\n\u2022 There is a significant momentum in clients\u2019 spend, driven by cloud transformation, digital transformation, and investment in cybersecurity. Overall, there is an increase in IT spend.<br \/>\n\u2022 3,000 freshers were added in 3Q and Wipro will continue to add more in 4QFY21.<br \/>\n\u2022 They do not foresee any adverse outcomes of Brexit on their European business. They expect more decision making around the future architecture and future scheme of things that customers will have post-Brexit.<br \/>\n\u2022 The sector-specific initiatives by the new Biden administration in US needs to be watched out.<\/p>\n<p><strong>Consensus Estimate: (Source: market screener website)<\/strong><br \/>\n\u2022 The closing price of Wipro was \u20b9 453\/- as of 14-January-2021. It traded at 24x\/ 23x\/ 21x the consensus earnings estimate of \u20b9 18.8\/ 19.4\/ 21.2 per share for FY21E\/FY22E\/FY23E respectively.<br \/>\n\u2022 The consensus target price of \u20b9 459 implies a PE multiple of 22x on FY23E EPS of \u20b9 21.2\/-.<\/p>\n<p>Disclaimer: &#8220;The views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Update on the Indian Equity Market: On Thursday, after another volatile session, Nifty 50 ended at 14,596 (+0.2%). Among the sectoral gainers, PHARMA (+0.8%), FMCG (+0.8%), and AUTO (+0.3%) led the gainers, while METAL (-1.0%), MEDIA (-0.2%), and BANK (-0.2%) led the losers. UPL (+3.7%), BPCL (+3.2%), INDUSINDBK (+3.0%) led the index higher while HCLTECH [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[87,568],"tags":[],"_links":{"self":[{"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1628"}],"collection":[{"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=1628"}],"version-history":[{"count":1,"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1628\/revisions"}],"predecessor-version":[{"id":1629,"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1628\/revisions\/1629"}],"wp:attachment":[{"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=1628"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=1628"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=1628"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}