Sell Recommendation by Emkay Global Financial Services
Emkay Global Financial Services recommended a sell call on Wipro with a target price of Rs 240. The company Wipro performed well during FY19. While in FY18/FY19 Wipro’s huge buybacks were 7% and 5.5% respectively. Wipro declared a 7 Year deal with ICICI Bank for a TCV worth of $300 million. The deal is anticipated to generate profitable revenues from 19th September.
Wipro will take control of around 3,800 employees of Vara Infotech along with its facilities, existing contracts and assets. Besides, the company plans to leverage its Automation platform Wipro Holmes to derive synergies out of this deal. The brokerages feel Wipro’s relative underperformance is going to sustain in FY20E led by sectoral weakness.
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