Friday, 21 November 2008

Hold Wipro, target of Rs 242: Indiabulls Securities

Indiabulls Securities Research has maintained its hold rating on Wipro with a target price of Rs 242 in its November 20, 2008 research report. "For Q2’09, Wipro Limited (Wipro) reported a modest sequential growth of 8.3% in its top line to Rs 65.4 billion, driven by a 1.5% increase in the sales volume, a 1.8% improvement in price realisation, and the depreciation of the rupee. Based on our DCF valuation, we have arrived at a target price of Rs. 242, assuming an 8% Rf, a 13% WACC, and a 5% terminal growth rate. Our fair value estimate provides only a 10.4% upside over the current levels; thus, we maintain our Hold rating for the stock," says Indiabulls Securities' research report.

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Source: Moneycontrol

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