00 52 week range inr 55905 32560 bse 30 asia india

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: y. Expect Wipro to report 17% USD revenue growth in FY15E We forecast Wipro to report USD revenue growth of 16.9% yoy in FY15E (vs. 6.6% yoy in FY14E). Better customer acquisition and mining would be the key catalyst. 600 560 520 480 440 400 360 320 1/12 7/12 1/13 BSE 30 (Rebased) Performance (%) 1m 3m 12m Absolute 13.1 15.6 38.4 BSE 30 -0.7 4.7 5.4 Source: Deutsche Bank Stock data Market cap (INRm) 1,359,085 Market cap (USDm) 21,768 Shares outstanding (m) 2,435.4 Major shareholders Free float (%) Avg daily value traded (USDm) Azim Premji (79.32%) 18 19.9 Source: Deutsche Bank Key indicators (FY1) ROE (%) 24.2 Net debt/equity (%) Book value/share (INR) Price/book (x) Reiterating Buy with a target price of INR650 Our 12-month target price is based on 16x FY14E P/E and is now valued at a slight premium to Infosys' target P/E multiple. See risks in Investment thesis. 7/13 Wipro -19.2 139.58 4.0 Net interest cover (x) 49.4 Operating profit margin (%) 20.0 Source: Deutsche Bank Forecasts And Ratios Year End Mar 31 Sales (INRm) EBITDA (INRm) Reported NPAT (INRm) Reported EPS FD(INR) DB EPS FD(INR) DB EPS growth (%) PER (x) EV/EBITDA (x) DPS (net) (INR) Yield (net) (%) 2012A 2013A 2014E 2015E 2016E 375,217.3 376,882.0 437,029.9 514,606.3 593,585.8 74,111.3 79,191.0 97,846.2 121,727.1 140,403.2 55,755.3 61,684.0 75,364.1 90,640.8 104,397.6 22.89 25.33 30.95 37.22 42.87 22.89 25.33 30.95 37.22 42.87 4.2 10.6 22.2 20.3 15.2 17.6 15.4 18.0 15.0 13.0 12.5 11.0 12.9 9.9 8.2 6.00 6.00 6.00 6.00 6.00 1.5 1.5 1.1 1.1 1.1 Source: Deutsche Bank estimates, company data 1 DB EPS is fully diluted and excludes non-recurring items 2 Multiples and yields calculations use average historical prices for past years and spot prices for current and future years, except P/B which uses the year end close Page 26 Deutsche Bank AG/Hong Kong 7 January 2014 Software & Services Indian IT Services Investment Thesis Outlook We rate Wipro shares as Buy, based on improving business traction and an attracti...
View Full Document

Ask a homework question - tutors are online