2QFY2016 Result Update | IT

November 2, 2015

Wipro

BUY

CMP

`573

Performance Highlights

Target Price

`719

(` cr)

2QFY16 1QFY16

% chg (qoq)

2QFY15

% chg (yoy)

Investment Period

12 Months

Net revenue

12,514

12,371

1.2

11,684

7.1

EBITDA

2,729

2,606

4.7

2,482

9.9

Stock Info

EBITDA margin (%)

21.8

21.3

51bp

21.2

56bp

Sector

PAT

2,235

2,188

2.2

2,085

7.2

Market Cap (` cr)

141,602

Source: Company, Angel Research

Net Debt (` cr)

(20,014)

Wipro posted a 2.1% qoq growth in IT revenue to US$1,832mn for 2QFY2016

Beta

0.6

(V/s an expected US$1,826mn). In Constant Currency terms (CC), the company

52 Week High / Low

677/513

posted a 3.1% qoq revenue growth. On the EBIDTA front, margins came in at

Avg. Daily Volume

121,503

21.7% V/s an expected 21.3%. The EBIT margin came in at 19.0% V/s (18.7%

Face Value (`)

expected), a qoq expansion of 44bp. The IT services segment posted an EBIT

margin of 20.7% V/s 21.0% in 1QFY2016. Thus, the net profit came in at

BSE Sensex

26,657

`2,235cr (V/s `2,223cr expected), a growth of 2.2% qoq. The company has

Nifty

8,066

guided towards sales of US$1,841-1,878mn for 3QFY2016, a growth of 0.5-

Reuters Code

WIPR.BO

2.5%. The guidance factors in fewer working days in 3QFY2016 and slow ramp-

Bloomberg Code

WPRO@IN

up of clients. We currently have a Buy rating on the stock.

Quarterly highlights: Wipro posted a

2.1% qoq growth in IT revenue to

Shareholding Pattern (%)

US$1,832mn for 2QFY2016 (V/s an expected US$1,826mn). In CC, the

Promoters

73.4

company posted a 3.1% qoq revenue growth. In rupee terms, the company

MF / Banks / Indian Fls

7.1

posted a 1.2% qoq revenue growth to `12,514cr V/s an expected `12,703cr. On

FII / NRIs / OCBs

13.8

the EBIDTA front, margins came in at 21.7% V/s an expected 21.3%. The IT

services segment posted an EBIT margin of 20.7% V/s 21.0% in 1QFY2016. In

Indian Public / Others

5.7

terms of the operating matrix, the net utilization level came in at 77.2% V/s 79.4%

in 1QFY2016 and the attrition rate was 16.8% V/s 16.4% in 1QFY2016. The

Abs.(%)

3m 1yr

3yr

company added 1 client in the US$50mn+ bracket and 3 in US$10mn+ bracket,

during the quarter.

Sensex

(3.8)

(2.5)

44.6

Wipro

2.2

2.5

65.0

Outlook and valuation: The Management remains confident of revenue growth

pick-up, citing momentum in large deal closures and win rates, uptick in

discretionary spending, strong business pipeline and with demand from the US

3-year price chart

sustaining. We expect USD and INR revenue CAGR for IT services to be at 10.0%

800.0

and 11.8%, respectively, over FY2015-17E. We recommend a Buy.

700.0

600.0

Key financials (Consolidated, IFRS)

500.0

Y/E March (` cr)

FY2014

FY2015

FY2016E

FY2017E

400.0

Net sales

43,427

46,955

52,414

58,704

300.0

% chg

16.0

8.1

11.6

12.0

200.0

100.0

Net profit

7,797

8,653

9,483

10,449

% chg

17.5

11.0

9.6

10.2

EBITDA margin (%)

22.9

23.1

23.7

23.8

O M

EPS (`)

31.5

35.1

38.4

42.3

P/E (x)

18.2

16.3

14.9

13.6

Source: Company, Angel Research

P/BV (x)

4.1

3.5

2.9

2.6

RoE (%)

22.6

21.1

19.5

18.0

RoCE (%)

17.1

15.3

15.1

14.7

Sarabjit kour Nangra

EV/Sales (x)

2.9

2.6

2.2

1.8

+91 22-39357800 Ext: 6806

EV/EBITDA (x)

12.9

11.6

9.7

7.9

[email protected]

Source: Company, Angel Research; Note: CMP as of October 30, 2015

Please refer to important disclosures at the end of this report

Wipro | 2QFY2016 Result Update

Exhibit 1: 2QFY2016 performance (Consolidated, IFRS)

Y/E March (` cr)

2QFY16

1QFY16

% chg (qoq)

2QFY15

% chg (yoy) 1HFY2016

1HFY2015

% chg (yoy)

Net revenue

12,514

12,371

1.2

11,684

7.1

24,751

22,820

8.5

Cost of revenue

8,229

8,142

1.1

7,779

5.8

16,371

14,990

9.2

Gross profit

4,284

4,096

4.6

3,905

9.7

8,380

7,830

7.0

SGA expense

1,556

1,490

4.4

1,423

9.3

3,045

2,798

8.8

EBITDA

2,729

2,606

4.7

2,482

9.9

5,335

5,032

6.0

Dep. and amortisation

353

337

4.7

308

14.6

690

591

16.8

EBIT

2,376

2,269

4.7

2,174

9.3

4,645

4,441

4.6

Other income

619

529

17.1

544

1,042

989

5.4

PBT

2,995

2,798

7.0

2,718

10.2

5,687

5,430

4.7

Income tax

654

595

9.9

620

5.5

1,243

1,214

2.4

PAT

2,341

2,203

6.3

2,098

11.6

4,444

4,216

5.4

Minority interest

Adj. PAT

2,235

2,188

2.2

2,085

7.2

4,423

4,188

5.6

Diluted EPS

9.1

8.9

2.1

8.5

7.2

18.0

17.1

5.6

Gross margin (%)

34.2

33.5

77bp

33.4

81bp

33.9

34.3

(45)bp

EBITDA margin (%)

21.8

21.3

51bp

21.2

56bp

21.6

22.1

(50)bp

EBIT margin (%)

19.0

18.5

44bp

18.6

38bp

18.8

19.5

(69)bp

PAT margin(%)

17.9

(1)bp

17.8

2bp

17.9

18.4

(48)bp

Source: Company, Angel Research

Exhibit 2: 2QFY2016 - Actual vs Angel estimates

(` cr)

Actual

Estimate

Variation (%)

Net revenue

12,514

12,703

(1.5)

EBIT margin (%)

19.0

18.7

(52)bp

PAT

2,235

2,223

0.6

Source: Company, Angel Research

Lower-than-expected results

Wipro posted a 2.1% qoq IT revenue growth to US$1,832mn V/s an expected

US$1,826mn. In CC, the company posted a 3.1% qoq revenue growth. In rupee

terms, the company posted a 1.2% qoq revenue growth to `12,514cr (V/s

`12,703cr expected). The revenue guidance for 2QFY2016 was of US$1,803-

1,839mn. Thus, the results have come at the upper end of the guidance. In rupee

terms, the revenue came in at `12,514cr V/s an expected `12,703cr and V/s

`12,371cr in 1QFY2016.

In CC terms, the company posted a 3.1% qoq revenue growth in 2QFY2016. On

CC basis, the key verticals Healthcare, Life Sciences & Services, Global Media &

Telecom, and Energy, Natural Resources & Utilities, posted a 4.2%, 4.4% and

0.3% qoq growth, respectively. Other domains like Retail, Consumer Goods &

Transportation, Manufacturing & Hitech, and Finance Solutions posted a growth of

3.5%, 3.6% and 3.1% qoq, respectively.

In terms of geographies, the USA posted a 3.6% qoq CC growth, while India &

Middle East business and APAC & Other Emerging Markets posted a 2.7% qoq

and 5.1% qoq CC growth, respectively. Europe, on a CC basis, grew by

1.4% qoq.

November 2, 2015

Wipro | 2QFY2016 Result Update

Exhibit 3: Trend in IT Services revenue growth (qoq)

1,850

2.1

1,800

1.8

1,750

1.3

1.1

1,700

1,650

(1)

1,600

(1.1)

1,772

1,795

1,775

1,794

1,832

1,550

(2)

2QFY15

3QFY15

4QFY15

1QFY16

2QFY16

IT services

qoq growth (%)

Source: Company, Angel Research

Industry wise, Wipro’s Global Media & Telecom vertical grew by 4.4% qoq in CC

terms. The revenue from the anchor industry vertical, Financial Solutions, grew by

3.1% qoq in CC terms. Revenue from Healthcare, Life Sciences & Services

grew by 4.2% qoq in CC terms while that from Energy, Natural Resources &

Utilities grew by 0.3% qoq in CC terms. Manufacturing and Hi-tech posted a 3.5%

qoq growth in CC terms while Retail & Transportation posted a 3.5% qoq growth

in CC terms.

Exhibit 4: Revenue growth (Industry wise - CC basis)

% to revenue

% growth (qoq)

% growth (yoy)

Global media and telecom

13.4

4.4

6.2

Financial solutions

26.7

3.1

10.8

Manufacturing and hi-tech

18.7

3.6

10.7

Healthcare, life sciences and services

11.4

4.2

8.7

Retail and transportation

15.1

3.5

16.4

Energy and utilities

14.7

0.3

(2.9)

Source: Company, Angel Research

Services wise, Wipro’s anchor service line

- Business Application Services

(contributed 46.8% to revenue) and Technology Infrastructure Services (contributed

28.0% to revenue) registered a rise in revenue of 0.7% and 1.8% qoq, respectively.

Analytics and Information Management (which contributed 7.5% of sales) grew by

3.3% qoq. Product Engineering and Mobility (which contributed 7.9% of sales)

grew by 4.9% qoq. Other services, consulting, R&D and BPO posted a qoq growth

of 13.8%, 4.1% and 7.1%, respectively.

November 2, 2015

Wipro | 2QFY2016 Result Update

Exhibit 5: Revenue growth (Service wise)

Service verticals

% to revenue

% growth (qoq)

% growth (yoy)

Technology infrastructure services

28.0

1.8

6.3

Analytics and information management

7.5

3.3

8.4

BPO

9.8

7.1

9.7

Product engineering and mobility

7.9

4.9

17.2

ADM

46.8

0.7

(2.0)

R&D business

10.5

4.1

11.6

Consulting

1.9

13.8

(3.4)

Source: Company, Angel Research

Geography wise, the developed economies - America and Europe, grew by 3.6%

and 1.4% qoq in CC terms, respectively. India posted a 2.7% qoq growth during

the period.

Exhibit 6: Revenue growth (Geography wise, CC basis)

% to revenue

% growth (qoq)

% growth (yoy)

America

53.0

3.6

9.1

Europe

25.2

1.4

1.1

India and Middle East

10.6

2.7

23.8

APAC and other emerging markets

11.2

5.1

10.5

Source: Company, Angel Research

The IT products segment reported a 40.6% yoy dip in revenue to `544cr, during

the quarter.

Exhibit 7: IT products - Revenue growth (yoy)

1,200

7.0

1,100

(2.4)

1,000

(10)

900

(14.9)

800

(20)

(23.8)

700

(30)

600

(40.6)

(40)

500

915

774

944

821

544

400

(50)

2QFY15

3QFY15

4QFY15

1QFY16

2QFY16

IT products

yoy growth (%)

Source: Company, Angel Research

November 2, 2015

Wipro | 2QFY2016 Result Update

Hiring and utilization

Wipro reported a net addition of 6,607 employees in its IT Services’ employee

base, which now stands at 168,396. Voluntary attritions (annualized) in the global

IT business increased considerably, but remained stagnant on a net basis at

16.4%. The Management indicated that it has taken necessary steps to curtail

attritions and expects them to decline going ahead. Also, the Management noted

that the company is going measured in terms of hiring due to hyper automation

process going on in the company in the run services, resulting in higher

productivity. The utilization rate of the global IT business moved down by 180bp

sequentially to 69.5%. Going ahead, an improvement in utilization level will be an

important margin lever.

Exhibit 8: Employee pyramid

Employee pyramid

2QFY15 3QFY15 4QFY15 1QFY16 2QFY16

Utilization - Global IT (%)

70.0

68.5

70.5

71.3

69.5

Attrition (%)

Global IT

16.9

16.5

16.4

BPO

12.0

13.1

13.3

12.0

10.2

Net additions

6,845

2,569

1,351

3,572

6,607

Source: Company, Angel Research

Margins dip

The company posted EBIT margins of 19.0% (V/s 18.7% expected), a qoq

expansion of 44bps. The IT Services segment posted an EBIT margin of 20.7% V/s

21.0% in 1QFY2016. The expansion in the company’s overall margins was mainly

on back of currency impact.

Exhibit 9: Segment-wise EBIT margin trend

22.0

21.8

22.2

21.0

20.7

20.0

19.3

19.0

18.6

18.5

1.6

1.5

0.7

0.8

0.6

2QFY15

3QFY15

4QFY15

1QFY16

2QFY16

IT services

IT products

Consolidated

Source: Company, Angel Research

November 2, 2015

Wipro | 2QFY2016 Result Update

Client pyramid

Wipro added 67 new clients in 2QFY2016, with its active client base standing at

1,100. The company’s focus on account mining continues to yield results with top

clients driving growth. Wipro continues to see good demand in the market place.

Exhibit 10: Client metrics

Particulars

2QFY15

3QFY15

4QFY15

1QFY16

2QFY16

US$100mn plus

US$75mn-$100mn

US$50mn-$75mn

US$20mn-$50mn

US$10mn-$20mn

US$5mn-$10mn

US$3mn-$5mn

US$1mn-$3mn

232

226

231

218

212

New client addition

Active customers

1,018

1,054

1071

1100

Source: Company, Angel Research

Investment Highlights

Moderate outlook: For 2QFY2016, the company has given a revenue guidance of

US$1,821-1,857mn, implying a US$ qoq growth of 0.5-2.5%. The Management

remains confident of the revenue growth pick-up sustaining, citing a pick-up in

large deal closures and win rates, uptick in discretionary spending, strong business

pipeline and sustained momentum in demand from the US. We expect USD and

INR revenue CAGR for IT services to be at 10.0% and 11.8%, respectively, over

FY2015-17E.

Deal pipeline looks robust: The company sees itself better placed than this time last

year to latch on to opportunities in the market and remains focused on improving

traction from its top 125 clients. As per the company, it is seeing a broad based

pick up in discretionary spending across verticals in the US, which should help

drive a better performance in the geography. In addition, the company remains

confident of its growth prospects with increased penetration in Europe. Wipro has

chosen a growth strategy of focusing on a selected few segments in terms of

industry verticals and services. Wipro is now better positioned than it was three

years ago to capture upsides from overall market improvement and can reduce the

gap in revenue growth with its peers.

Further, the company has bought the information technology (IT) services business

of the Canadian logistics and utilities firm, Atco, for US$195mn.The deal, which

comes less than a year since Wipro bought US-based Opus Capital Markets

Consultants Llc for US$75mn, is one of the company’s largest acquisitions in

recent years, and comes bundled with a 10-year, US$1.1bn outsourcing contract

with Atco. The outsourcing contract—one of the largest ever for Wipro—is

expected to result in annual revenue of about US$112mn.

November 2, 2015

Wipro | 2QFY2016 Result Update

Outlook and valuation

Wipro has been showing a decent performance in the past couple of quarters by

rationalizing costs. We have factored in a FY2015-17E EBIT margin at 19.9%

considering that most headwinds are already behind for Wipro and hence believe

that this can be achieved if the company improves its operational efficiency. The

stock is currently trading at 14.9x FY2016E and 13.6x FY2017E EPS, ie at a

discount to its peers. We recommend a Buy on the stock with a target price of

`719.

Exhibit 11: Key assumptions

FY2016E

FY2017E

Revenue growth - IT services (USD)

8.0

12.0

USD-INR rate (realized)

62.5

Revenue growth - Consolidated (`)

11.6

12.0

EBITDA margin (%)

23.7

23.8

Tax rate (%)

22.0

EPS growth (%)

9.6

10.2

Source: Company, Angel Research

Exhibit 12: One-year forward PE chart

1,100

950

800

650

500

350

200

Price

27x

22x

17x

12x

Source: Company, Angel Research

Exhibit 13: Recommendation summary

Company

Reco

CMP Tgt. price Upside

FY2017E FY2017E

FY2015-17E

FY2017E FY2017E

(`)

(%)

EBITDA (%)

P/E (x)

EPS CAGR (%)

EV/Sales (x)

RoE (%)

HCL Tech

Buy

870

1,132

30.2

23.5

13.8

10.6

2.0

19.8

Infosys

Buy

1,136

1,306

15.0

28.0

19.5

8.9

3.1

19.7

TCS

Buy

2,497

3,165

26.7

28.7

19.9

13.9

3.5

42.2

Tech Mahindra Buy

539

646

19.9

17.0

20.5

8.0

1.5

18.6

Wipro

Buy

573

719

25.4

23.8

13.6

9.7

1.9

18.0

Source: Company, Angel Research

November 2, 2015

Wipro | 2QFY2016 Result Update

Profit & Loss account (Consolidated, IFRS)

Y/E March (` cr)

FY2013 FY2014 FY2015 FY2016E FY2017E

Net revenue

37,426

43,427

46,955

52,414

58,704

Cost of revenues

26,067

29,549

30,846

35,642

39,919

Gross profit

11,359

13,878

16,108

16,773

18,785

% of net sales

30.4

32.0

34.3

32.0

Selling and mktg exp.

2,421

2,925

3,063

3,512

3,933

% of net sales

6.5

6.7

6.5

6.7

General and admin exp.

2,203

2,354

2,585

2,830

3,170

% of net sales

5.9

5.4

5.5

5.4

Depreciation and amortization

1,084

1,111

1,282

1,363

1,526

% of net sales

2.9

2.6

2.7

2.6

EBIT

6,735

8,600

9,179

10,430

11,682

% of net sales

18.0

19.8

19.5

19.9

Other income, net

1,626

1,501

1,990

1,808

Share in profits of eq. acc. ass.

Profit before tax

8,360

10,101

11,168

12,238

13,490

Provision for tax

1,691

2,260

2,462

2,692

2,968

% of PBT

20.2

22.4

22.0

PAT

6,669

7,840

8,706

9,546

10,522

Share in earnings of associate

Minority interest

Adj. PAT

6,636

7,797

8,653

9,483

10,449

Diluted EPS (`)

26.8

31.5

35.1

38.4

42.3

November 2, 2015

Wipro | 2QFY2016 Result Update

Balance sheet (Consolidated, IFRS)

Y/E March (` cr)

FY2013

FY2014

FY2015

FY2016E

FY2017E

Assets

Goodwill

5,476

6,342

6,808

6,877

6,234

Intangible assets

171

194

793

Property, plant & equipment

5,053

5,145

5,421

5,721

6,021

Investment in equ. acc. investees

268

387

Derivative assets

Non-current tax assets

1,031

1,019

1,141

Deferred tax assets

424

336

295

Other non-current assets

1,074

1,430

1,437

1,430

Total non-current assets

13,233

14,762

16,354

16,716

16,373

Inventories

326

229

485

480

Trade receivables

7,664

8,539

9,153

10,216

11,441

Other current assets

3,107

3,947

7,336

Unbilled revenues

3,199

3,933

4,234

Available for sale investments

6,917

6,056

5,391

Current tax assets

741

977

649

900

Derivative assets

303

366

508

Cash and cash equivalents

8,484

11,420

15,894

23,237

32,948

Total current assets

30,740

35,469

43,649

52,300

63,237

Total assets

43,973

50,230

60,003

69,017

79,610

Equity

Share capital

493

Share premium

1,176

1,266

1,403

Retained earnings

25,918

31,495

37,225

44,946

54,378

Share based payment reserve

132

102

131

102

Other components of equity

717

1,047

1,545

Shares held by controlled trust

(54)

Equity attrib. to shareholders of Co.

28,381

34,350

40,789

48,489

57,921

Minority interest

117

139

165

Total equity

28,498

34,489

40,954

48,654

58,086

Liabilities

Long term loans and borrowings

1,091

1,271

Deferred tax liability

180

324

Derivative liabilities

Non-current tax liability

479

345

670

Other non-current liabilities

339

417

366

Provisions

Total non-current liabilities

1001

2096

2647

Loans and bank overdraft

6,296

4,068

6,621

Trade payables

4,807

5,226

5,875

6,914

7,744

Unearned revenues

1,035

1,277

1,655

1,877

Current tax liabilities

1,023

1,248

804

1,077

1,187

Derivative liabilities

250

Other current liabilities

1,099

1,439

1,222

Provisions

117

137

152

Total current liabilities

14,474

13,646

16,403

17,716

18,878

Total liabilities

15,475

15,742

19,050

20,363

21,525

Total equity and liabilities

43,973

50,230

60,003

69,017

79,610

November 2, 2015

Wipro | 2QFY2016 Result Update

Cash flow statement (Consolidated, IFRS)

Y/E March (` cr)

FY2013

FY2014

FY2015

FY2016E

FY2017E

Pre tax profit from operations

6,974

8,935

11,168

12,238

13,490

Depreciation

1,237

1,111

1,282

1,363

1,526

Expenses (deferred)/written off

(10)

(13)

Pre tax cash from operations

8,201

10,033

12,438

13,588

15,004

Other income/prior period ad

1,001

1,165

1,990

1,808

Net cash from operations

9,202

11,198

14,428

15,396

16,812

Tax

(1,835)

(2,260)

(2,462)

(2,692)

(2,968)

Cash profits

7,367

8,938

11,965

12,704

13,844

(Inc)/dec in current assets

(2,653)

(8,181)

(8,651)

(10,937)

Inc/(dec) in current liab.

2,706

(828)

2,757

1,313

1,162

Net trade working capital

2,752

(3,482)

(5,423)

(7,338)

(9,775)

Cashflow from oper. actv.

10,119

5,456

6,542

5,366

4,069

(Inc)/dec in fixed assets

(391)

(1,203)

(276)

(300)

(Inc)/dec in intangibles

1,570

(889)

(600)

(Inc)/dec in investments

(2,398)

594

(119)

(Inc)/dec in net def. tax assets

(164)

(Inc)/dec in derivative assets

341

(24)

(Inc)/dec in non-current tax asset

(2)

(7)

(Inc)/dec in minority interest

Inc/(dec) in other non-current liab

(49)

273

(Inc)/dec in other non-current ast.

104

(122)

Cashflow from investing activities

(957)

(1,667)

(826)

(297)

(290)

Inc/(dec) in debt

(2,166)

1,006

180

Inc/(dec) in equity/premium

(4,544)

(123)

314

4,036

6,949

Dividends

(1,736)

(1,762)

(1,017)

Cashflow from financing activities

(8,446)

(853)

(1,242)

2,274

5,932

Cash generated/(utilized)

717

2,936

4,474

7,343

9,711

Cash at start of the year

7,767

8,484

11,420

15,894

23,237

Cash at end of the year

8,484

11,420

15,894

23,237

32,948

November 2, 2015

Wipro | 2QFY2016 Result Update

Key Ratios

Y/E March

FY2013

FY2014

FY2015

FY2016E

FY2017E

Valuation ratio(x)

P/E (on FDEPS)

21.4

18.2

16.3

14.9

13.6

P/CEPS

10.6

8.6

7.9

7.1

6.4

P/BVPS

5.0

4.1

3.5

2.9

2.6

Dividend yield (%)

1.0

1.1

0.6

EV/Sales

3.4

2.9

2.6

2.2

1.8

EV/EBITDA

16.1

12.9

11.6

9.7

7.9

EV/Total assets

2.9

2.5

2.0

1.7

1.3

Per share data (`)

EPS (Fully diluted)

26.8

31.5

35.1

38.4

42.3

Cash EPS

54.1

66.3

72.1

80.5

89.5

Dividend

6.0

6.1

3.5

Book value

115.3

139.5

165.7

196.8

220.0

DuPont analysis

Tax retention ratio (PAT/PBT)

0.8

Cost of debt (PBT/EBIT)

7.7

9.1

8.7

9.0

8.8

EBIT margin (EBIT/Sales)

0.0

Asset turnover ratio (Sales/Assets)

0.9

0.8

0.7

Leverage ratio (Assets/Equity)

1.5

1.4

Operating ROE

23.5

22.8

21.3

19.7

18.2

Return ratios (%)

RoCE (pre-tax)

15.3

17.1

15.3

15.1

14.7

Angel RoIC

29.2

32.6

28.8

31.1

33.3

RoE

23.3

22.6

21.1

19.5

18.0

Turnover ratios (x)

Asset turnover(fixed assets)

0.9

0.8

Receivables days

Payable days

November 2, 2015

Wipro | 2QFY2016 Result Update

Research Team Tel: 022 - 39357800

E-mail: [email protected]

Website: www.angelbroking.com

DISCLAIMER

Angel Broking Private Limited (hereinafter referred to as “Angel”) is a registered Member of National Stock Exchange of India Limited,

Bombay Stock Exchange Limited and MCX Stock Exchange Limited. It is also registered as a Depository Participant with CDSL and

Portfolio Manager with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking Private Limited is a

registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide registration number

INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory authority for accessing

/dealing in securities Market. Angel or its associates including its relatives/analyst do not hold any financial interest/beneficial

ownership of more than 1% in the company covered by Analyst. Angel or its associates/analyst has not received any compensation /

managed or co-managed public offering of securities of the company covered by Analyst during the past twelve months. Angel/analyst

has not served as an officer, director or employee of company covered by Analyst and has not been engaged in market making activity

of the company covered by Analyst.

This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment

decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should

make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the

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the merits and risks of such an investment.

Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and

trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's

fundamentals.

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document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way

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testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.

While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be

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Note: Please refer to the important ‘Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the

latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates may

have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement

Wipro

1. Analyst ownership of the stock

2. Angel and its Group companies ownership of the stock

3. Angel and its Group companies' Directors ownership of the stock

4. Broking relationship with company covered

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors

Ratings (Based on expected returns

Buy (> 15%)

Accumulate (5% to 15%)

Neutral (-5 to 5%)

over 12 months investment period):

Reduce (-5% to -15%)

Sell (< -15)

November 2, 2015