Monday 17 November 2008

Buy Wipro, target of Rs 325: Anand Rathi

Anand Rathi Securities has recommended a buy rating on Wipro with a target price of Rs 325 in its November 17, 2008 research report. "Wipro has built considerable scale in the IMS space (largest practice among Indian IT companies) and has been able to build on the leads. Wipro has undertaken several initiatives, such as hiring at a slower pace and focusing on internal processes, which have resulted in revenue growth overtaking volume growth. Wipro trades at 9.6x FY09 and 10.8x FY10 estimated earnings."

"We rate it a Buy with a target price of Rs 325 at a target PE multiple of 11.8x its one-year forward earnings. At our target price, the stock would trade at 7.6x EV/EBITDA our one-year forward estimates. Our DCF valuation for Wipro assumes an 8.5% risk-free rate, a 6% risk premium and a 3% terminal growth rate. The DCF-based fair value, after taking estimated growth till FY10 and 11% growth during FY10-15, is Rs 320," says Anand Rathi's research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Source: Moneycontrol

Posted by Harsh at 13:35

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)
DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.