Wipro !!

Wipro : Wipro Ltd
Scrip Code: WIPRO Call: Buy Price: 418
Reco Date: 09/Jun/2k6

Given the considerable improvement in its growth outlook, wipro is poised to grow at
Higher than industry growth rate over the next two years.


BSE Price: 492.00
NSE Price: 490.80
Inc: Computer- SW- Larg

BSE Code: 507685
NSE Code: WIPRO
FREE Float: 6.89%

Key Points:
>> Wipro is witnessing strong traction in its existing IT service business. In addition to this, the incremental growth from the recent inorganic initiative has considerably improved the visibility of growth in its global software service business.

>> The margins are also sustainabale at the current level, given the positive pricing enviornment and the other operating levers (like a higher offshore contribution and utilization rate) that are likely to cushion any adverse impact of wage inflation on the comps profiatability.

>> The company has effectively addressed the two key concern of a slow-down in its BPO operations and a lack of focus on large outsourcing delas over the past few quarters.

>> Consequently i expect wipro's earnings to grow at a compunded annual growth rate of 27% over the 2 year period of FY06-08

>> The stock's valuations are quite compelling with its premium to the sensex close to a 2 year low.