4QFY2016 Result Update | IT

May 11, 2016

Wipro

BUY

CMP

`539

Performance Highlights

Target Price

`680

(` cr)

4QFY16 3QFY16

% chg (qoq)

4QFY15

% chg (yoy)

Investment Period

12 Months

Net revenue

13,742

12,861

6.9

12,142

13.2

EBITDA

2,914

2,648

10.0

2,791

4.4

Stock Info

EBITDA margin (%)

21.2

20.6

61bps

23.0

(178)bps

Sector

PAT

2,235

2,234

0.0

2,272

(1.6)

Source: Company, Angel Research

Market Cap (` cr)

1,33,147

Net Debt (` cr)

(20,014)

Wipro’s 4QFY2016 results have come in below our expectations. The company’s

IT services posted a revenue of US$1,882mn (V/s US$1,902mn expected) up

Beta

0.7

2.4% qoq. This is against a revenue guidance of US$1,875mn to US$1,912mn

52 Week High / Low

613/509

for the quarter. In constant currency (CC) terms, the company posted a qoq

Avg. Daily Volume

1,11,313

revenue growth of 2.7%. On the operating front, IT Services’ EBIT margin stood at

Face Value (`)

20.1% while the overall EBIT margin came in at 18.2% (V/s 18.7% expected), ie

BSE Sensex

25,690

an expansion by

34bp qoq. The net profit for the quarter came in flat on a qoq

Nifty

7,866

basis at `2,235cr (V/s `2,237cr expected). The company gave a guidance of IT

Reuters Code

WIPR.BO

services revenues being in the range of US$1,901mn-US$1,939mn for

Bloomberg Code

WPRO@IN

1QFY2017, posting a qoq growth of

1.0-3.0%. We maintain our buy

recommendation on the stock with a price target of `680.

Shareholding Pattern (%)

Quarterly highlights: The company’s IT services posted a revenue of US$1,882mn

Promoters

73.3

(V/s US$1,902mn expected) up 2.4% qoq. This is against a revenue guidance of

MF / Banks / Indian Fls

7.6

US$1,875mn to US$1,912mn for the quarter. In CC terms, the company posted

FII / NRIs / OCBs

13.4

a qoq revenue growth of 2.7%. On the operating front, IT Services’ EBIT margin

Indian Public / Others

5.7

stood at 20.1% while the overall EBIT margin came in at 18.2% (V/s 18.7%

expected), ie an expansion by

34bp qoq. The net profit for the quarter came in

flat on a qoq basis at `2,235cr (V/s `2,237cr expected). On the operating front,

Abs.(%)

3m 1yr

3yr

the quarterly annualized voluntary attrition dropped from 16.3% in 3QFY2016 to

Sensex

6.9

(5.2)

28.8

14.9% in 4QFY2016.

Wipro

0.5

(0.4)

51.8

Outlook and valuation: The Management remains confident of the business

environment and has set a revenue target of US$15bn by 2020, implying a CAGR

of 20% over the next four years. However the near term guidance implies a moderate

3-year price chart

organic growth. We expect USD and INR revenue CAGR for IT services to be at 12.1%

and 11.6%, respectively, over FY2016-18E. We recommend a Buy on the stock.

Key financials (Consolidated, IFRS)

Y/E March (` cr)

FY2015

FY2016

FY2017E

FY2018E

Net sales

46,955

51,631

58,473

64,320

% chg

8.1

10.0

13.3

10.0

Net profit

8,653

9,361

10,413

11,311

% chg

11.0

8.2

11.2

8.6

EBITDA margin (%)

23.1

23.7

23.8

23.5

Source: Company, Angel Research

EPS (`)

35.1

37.9

42.1

45.8

P/E (x)

15.3

14.2

12.8

11.8

P/BV (x)

3.2

2.8

2.5

RoE (%)

21.1

20.0

19.6

RoCE (%)

15.3

14.2

14.7

14.9

Sarabjit kour Nangra

EV/Sales (x)

2.4

2.2

1.8

1.5

+91 22-39357800 Ext: 6806

EV/EBITDA (x)

10.9

9.7

7.8

6.8

[email protected]

Source: Company, Angel Research; Note: CMP as of May 9, 2016

Please refer to important disclosures at the end of this report

Wipro | 4QFY2016 Result Update

Exhibit 1: 4QFY2016 performance (Consolidated, IFRS)

Y/E March (` cr)

4QFY16

3QFY16

% chg (qoq)

4QFY15

% chg (yoy)

FY2016

FY2015

% chg (yoy)

Net revenue

13,742

12,861

6.9

12,142

13.2

51,631

47,315

9.1

Cost of revenue

8,879

8,675

2.4

7,896

12.5

34,325

30,846

11.3

Gross profit

4,863

4,186

16.2

4,246

14.5

17,306

16,469

5.1

SGA expense

1,949

1,537

26.8

1,455

33.9

6,107

5,643

8.2

EBITDA

2,914

2,648

10.0

2,791

4.4

11,199

10,826

3.4

Dep. and amortisation

430

352

22.2

365

17.9

1,497

1,282

16.7

EBIT

2,484

2,296

8.2

2,426

2.4

9,702

9,544

1.7

Other income

433

572

(24.2)

486

1,770

1,626

8.8

PBT

2,917

2,868

1.7

2,912

0.2

11,472

11,170

2.7

Income tax

663

625

6.1

626

5.8

2,531

2,462

2.8

PAT

2,254

2,243

0.5

2,286

(1.4)

8,941

8,706

2.7

Minority interest

Adj. PAT

2,235

2,234

0.0

2,272

(1.6)

8,892

8,653

2.8

Diluted EPS

9.1

(0.1)

9.2

(1.3)

27.1

35.1

(22.8)

Gross margin (%)

35.4

32.5

284bps

35.0

42bps

33.5

34.8

(129)bps

EBITDA margin (%)

21.2

20.6

61bps

23.0

(178)bps

21.7

22.9

(119)bps

EBIT margin (%)

18.2

17.9

34bps

20.0

(178)bps

18.8

20.2

(138)bps

PAT margin(%)

16.3

17.4

(111)bps

18.7

(245)bps

17.2

18.3

(107)bps

Source: Company, Angel Research

Exhibit 2: 4QFY2016 - Actual vs Angel estimates

(` cr)

Actual

Estimate

Variation (%)

Net revenue

13,742

13,735

0.0

EBIT margin (%)

18.2

18.7

(50)bps

PAT

2,235

2,237

(0.1)

Source: Company, Angel Research

Just in line results

The company’s IT services posted a revenue of US$1,882mn (V/s US$1,902mn

expected) up 2.4% qoq. In CC terms, the company posted a qoq revenue growth

of 2.7%. This is against a revenue guidance of US$1,875mn to US$1,912mn for

the quarter. Overall, in rupee terms, revenues grew by 6.9% qoq to `13,742cr

(V/s `13,735cr expected), led by rupee deprecation.

In terms of geographies, Americas grew 1.8% qoq in CC terms, India and Middle

East grew 3.0% qoq in CC terms, Europe grew 3.0% qoq in CC terms and APAC

and Other Emerging Markets de-grew 2.1% qoq in CC terms.

In terms of business units, Healthcare, Life Sciences & Services grew 13.1% qoq

(CC), Retail, Consumer Goods and Transportation grew 1.8% qoq (CC), while

Manufacturing grew 4.0% qoq (CC). Its key verticals, Global Media & Telecom and

Finance Solutions posted a growth of 0.1% qoq (CC) and -0.3% qoq (CC),

respectively. Energy, Natural Resources & Utilities on the other hand posted a CC

growth of 1.0% qoq while Retail & Transportation posted a 1.8% qoq growth in CC

terms.

May 11, 2016

Wipro | 4QFY2016 Result Update

During the quarter, Wipro completed the acquisition of Health Plan Services, a

BPaaS company in the US.

Exhibit 3: Trend in IT Services revenue

1,900

1,882

1,832

1,838

2.4

1,850

2.1

1,794

1,800

1,775

1.1

1,750

1,700

0.3

1,650

-1

(1.1)

1,600

1,550

-2

4QFY15

1QFY16

2QFY16

3QFY16

4QFY16

IT services

qoq growth (%)

Source: Company, Angel Research

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

% to revenue

% growth (QoQ)

% growth (yoy)

Global media and telecom

13.1

0.1

6.2

Financial solutions

25.4

(0.3)

3.6

Manufacturing and hi-tech

18.8

4.0

9.1

Healthcare, life sciences and

13.3

13.1

20.1

services

Retail and transportation

15.4

1.8

15.2

Energy and utilities

14.0

1.0

(1.8)

Source: Company, Angel Research

Services wise, Wipro’s anchor service lines ADM (contributed 45.3% to revenue)

and Technology Infrastructure Services (contributed 28.9% to revenue) registered a

dip of 0.6% and growth of 5.5% qoq, respectively. Analytics and Information

Management (which contributed 7.2% of sales) de-grew by 1.0% qoq. Product

Engineering and Mobility (which contributed 8.0% of sales) grew by 1.8% qoq.

Consulting, R&D and BPO posted a qoq growth of -8.2%, 1.1% and 10.6%,

respectively.

May 11, 2016

Wipro | 4QFY2016 Result Update

Exhibit 5: Revenue growth (Service wise)

Service verticals

% to revenue

% growth (QoQ)

% growth (yoy)

Technology infrastructure services

28.9

5.5

9.9

Analytics and information management

7.2

(1.0)

6.7

BPO

10.6

19.9

Product engineering and mobility

8.0

1.8

11.5

ADM

45.3

(0.6)

0.2

R&D business

10.4

1.1

7.1

Consulting

1.4

(8.2)

(15.4)

Source: Company, Angel Research

Geography wise, the developed economies America and Europe grew by 1.8%

and 6.6% qoq in CC terms, respectively. India posted a 3.0% qoq CC growth

during the period. However, APAC and other emerging markets posted a 2.1% qoq de-

growth for the quarter.

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

% to revenue

% growth (QoQ)

% growth (yoy)

America

52.5

1.8

8.5

Europe

25.6

6.6

3.8

India and Middle East

11.0

3.0

14.0

APAC and other emerging markets

10.9

(2.1)

7.8

Source: Company, Angel Research

The IT Products segment reported a 52.5% yoy dip in revenue to `449cr, during

the quarter.

Exhibit 7: IT Products - Revenue growth (yoy)

1,000

20.0

900

7.0

10.0

800

700

(10.0)

(16.0)

(14.9)

600

(20.0)

500

(30.0)

400

(38.3)

(40.0)

300

(50.0)

(52.5)

200

(60.0)

944

821

565

650

449

100

(70.0)

4QFY15

1QFY16

2QFY16

3QFY16

4QFY16

IT products

yoy growth (%)

Source: Company, Angel Research

May 11, 2016

Wipro | 4QFY2016 Result Update

Hiring and utilization

Wipro reported a net addition of 2,248 employees in its IT Services’ employee

base, which now stands at 172,912. Voluntary attritions (annualized) in the global

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

16.1%. The utilization rate of the global IT business moved up by 170bp

sequentially to 68.1%. Going ahead, an improvement in utilization level will be an

important margin lever.

Exhibit 8: Employee pyramid

Employee pyramid

4QFY15 1QFY16 2QFY16 3QFY16 4QFY16

Utilization - Global IT (%)

70.5

71.3

69.5

66.4

68.1

Attrition (%)

Global IT

16.5

16.4

16.3

16.1

BPO

13.3

12.0

10.2

9.9

11.1

Net additions

1,351

3,572

6,607

2,268

2,248

Source: Company, Angel Research

Margins dip

On the operating front, the EBIT margin for the IT services business came in at

20.1% V/s 20.2% in 3QFY2016, a downtick of 10bp qoq; while the consolidated

EBIT margin came in 18.2% V/s 17.9% in 3QFY2016. The miss in terms of overall

EBIT margins was largely on account of operating losses in the hardware business

to the tune of `29cr (-3.0% EBIT margin). This marks the third consecutive quarter

of losses in the product business.

Exhibit 9: Segment-wise EBIT margin trend

25.0

22.2

21.0

20.7

20.2

20.1

20.0

18.5

19.0

18.2

15.0

17.9

10.0

5.0

1.5

1.6

0.6

4QFY15

1QFY16

2QFY16

3QFY16

4QFY16

(5.0)

(3.0)

(4.0)

(10.0)

IT services

IT products

Consolidated

Source: Company, Angel Research

May 11, 2016

Wipro | 4QFY2016 Result Update

Client pyramid

Wipro added 119 new clients during the quarter (including customers of Cellent

and HealthPlan Services) with its active client base now standing at

1,223.

Amongst these, 1 has been in the US$75mn+ bracket, 3 in US$20mn+ bracket

and 5 in the US$3mn+ bracket. Wipro cited that there has been increasing pricing

pressure in large deals, led by growing competitive pressures. Both, deal sizes as

well as value of deals are under pressure. In such an environment, Wipro has been

trying to offset pressure by increasing the use of automation.

Exhibit 10: Client metrics

Particulars

4QFY15

1QFY16

2QFY16

3QFY16

4QFY16

US$100mn plus

US$75mn-$100mn

US$50mn-$75mn

US$20mn-$50mn

US$10mn-$20mn

US$5mn-$10mn

US$3mn-$5mn

US$1mn-$3mn

231

218

212

211

219

New client addition

119

Active customers

1,054

1071

1100

1105

1223

Source: Company, Angel Research

Investment highlights

Moderate outlook on organic growth: For 1QFY2017, the company has given a

revenue guidance of US$1,901-1,939mn, implying a US$ qoq growth of 1.0-

3.0%. The guidance includes the full integration of HPS (Health Plan Services), but

doesn’t include the acquisition of Viteos, as the same is still to get approval. Given

HPS’ quarterly revenue run-rate of US$57mn, this would imply contribution of 2%

from the acquisition, hence suggesting organic revenue growth of -1% to 1%. We

expect US$ and INR revenue CAGR to be at 10.6% and 10.2%, respectively, over

FY2016-18E.

Target CAGR of 20%: The company as part of its vision for 2020 is targeting to

reach US$15bn revenues with 23% EBIT margin, implying revenue CAGR of ~20%

over the next four years. If the margins expand by 300bp, then it would imply an

even higher CAGR for earnings. The company sees itself better placed than this

time last year to latch on to opportunities in the market though the same

aggression and optimism is yet to reflect in its performance. Going by the

guidance, the company’s organic growth outlook is not even closer to its peers.

However, on the acquisition front, the company has been very aggressive in

comparison to the peers.

During the quarter, the company acquired HealthPlan Services from Water Street

Healthcare Partners. Since partnering with Water Street in 2008, HealthPlan

Services has grown to become the leading independent technology and Business

Process as a Service (BPaaS) provider in the US health insurance market. As part of

the agreement, Wipro will acquire 100% of HealthPlan Services' shares for a

purchase consideration of US$460mn. Headquartered in Tampa, Florida,

May 11, 2016

Wipro | 4QFY2016 Result Update

HealthPlan Services employs over 2,000 associates. HealthPlan Services offers

market-leading technology platforms and a fully integrated Business Process as a

Service (BPaaS) solution to health insurance companies in the individual, group

and ancillary markets. HealthPlan Services’ BPaaS solutions are ideal for payers

who want to operate in the private and public exchanges and the off-exchange

individual market in the US.

Outlook and valuation

The new CEO of the company has put in place an aggressive target for itself of

20% revenue CAGR over the next four years, with much improved profitability

(where the company has significant levers in the form of automation and

improving utilization levels). Also, the company announced a total of `6/share in

Dividends and up to `2,500cr through the buyback. Thus the total payout in

FY2016 implies a payout of ~45%, compared to 34% in FY2015. The company

guided at sustaining ~40% payout going forward, which will improve the overall

returns of the shareholders. On the valuation front, the stock is currently

trading at 14.3x FY2017E and 13.1x FY2018E EPS, ie at a discount to its

peers, while we expect the same to improve once the company’s performance

comes in line with the peers in terms of growth and profitability. We

recommend a Buy rating on the stock with a target price of `680.

Exhibit 11: Key assumptions

FY2017E

FY2018E

Revenue growth - IT services (USD)

14.2

10.0

USD-INR rate (realized)

65.7

Revenue growth - Consolidated (`)

13.3

10.0

EBITDA margin (%)

23.8

23.5

Tax rate (%)

22.0

EPS growth (%)

11.2

8.6

Source: Company, Angel Research

Exhibit 12: One-year forward PE chart

1100

950

800

650

500

350

200

Price

27x

22x

17x

12x

Source: Company, Angel Research

May 11, 2016

Wipro | 4QFY2016 Result Update

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

723

1,038

43.6

21.5

12.5

10.6

1.6

18.8

Infosys

Accumulate

1,199

1,374

14.6

27.5

18.4

8.9

3.3

22.4

TCS

Buy

2,515

3,004

19.4

28.3

17.8

12.8

3.5

34.6

Tech Mahindra

Accumulate

478

530

10.8

17.0

14.2

8.0

1.3

19.1

Wipro

Buy

539

680

26.2

23.8

14.2

9.9

1.8

20.0

Source: Company, Angel Research

Company background

Wipro is among the leading Indian companies, majorly offering IT services. The

company is also engaged in the IT hardware (10% of sales) business. Wipro's IT

arm is India's fourth largest IT firm, employing more than 1,68,000 professionals,

offering a wide portfolio of services such as ADM, consulting and package

implementation, and servicing more than 1,000 clients.

May 11, 2016

Wipro | 4QFY2016 Result Update

Profit & Loss account (Consolidated, IFRS)

Y/E March (` cr)

FY2014 FY2015 FY2016 FY2017E FY2018E

Net revenue

43,427

46,955

51,631

58,473

64,320

Cost of revenues

29,549

30,846

35,109

39,762

43,738

Gross profit

13,878

16,108

16,522

18,711

20,582

% of net sales

32.0

34.3

32.0

Selling and mktg exp.

2,925

3,063

3,459

3,918

4,309

% of net sales

6.7

6.5

6.7

General and admin exp.

2,354

2,585

2,788

3,158

3,473

% of net sales

5.4

5.5

5.4

Depreciation and amortization

1,111

1,282

1,342

1,520

1,672

% of net sales

2.6

2.7

2.6

EBIT

8,600

9,179

10,275

11,636

12,800

% of net sales

19.8

19.5

19.9

Other income, net

1,501

1,990

1,808

Share in profits of eq. acc. ass.

Profit before tax

10,101

11,168

12,082

13,444

14,608

Provision for tax

2,260

2,462

2,658

2,958

3,214

% of PBT

22.4

22.0

PAT

7,840

8,706

9,424

10,486

11,394

Share in earnings of associate

Minority interest

Adj. PAT

7,797

8,653

9,361

10,413

11,311

Diluted EPS (`)

31.5

35.1

37.9

42.1

45.8

May 11, 2016

Wipro | 4QFY2016 Result Update

Balance sheet (Consolidated, IFRS)

Y/E March (` cr)

FY2014

FY2015

FY2016

FY2017E

FY2018E

Assets

Goodwill

6,342

6,808

10,199

6,316

6,317

Intangible assets

194

793

1,584

Property, plant & equipment

5,145

5,421

6,495

6,795

7,095

Investment in equ. acc. investees

268

387

491

Derivative assets

Non-current tax assets

1,019

1,141

1,175

Deferred tax assets

336

295

380

Other non-current assets

1,430

1,437

1,583

Total non-current assets

14,762

16,354

21,933

18,350

18,651

Inventories

229

485

539

Trade receivables

8,539

9,153

10,238

11,396

12,536

Other current assets

3,947

7,336

10,407

Unbilled revenues

3,933

4,234

4,827

Available for sale investments

6,056

5,391

13,294

Current tax assets

977

649

781

Derivative assets

366

508

568

Cash and cash equivalents

11,420

15,894

9906

18976

24128

Total current assets

35,469

43,649

50,559

60,788

67,079

Total assets

50,230

60,003

72,492

79,137

85,730

Equity

Share capital

493

494

493

494

Share premium

1,266

1,403

1,462

Retained earnings

31,495

37,225

42,574

47,898

53,613

Share based payment reserve

102

131

223

102

103

Other components of equity

1,047

1,545

1,853

Shares held by controlled trust

(54)

Equity attrib. to shareholders of Co.

34,350

40,789

46,608

51,808

57,525

Minority interest

139

165

222

Total equity

34,489

40,954

46,830

52,031

57,747

Liabilities

Long term loans and borrowings

1,091

1,271

1,736

Deferred tax liability

180

324

511

Derivative liabilities

Non-current tax liability

345

670

823

Other non-current liabilities

417

366

723

Provisions

Total non-current liabilities

2096

2647

3806

3805

3806

Loans and bank overdraft

4,068

6,621

10,786

Trade payables

5,226

5,875

6,819

7,714

8,485

Unearned revenues

1,277

1,655

1,808

1,877

1,878

Current tax liabilities

1,248

804

702

1,183

1,285

Derivative liabilities

250

234

Other current liabilities

1,439

1,222

1,382

Provisions

137

152

126

Total current liabilities

13,646

16,403

21,856

23,302

24,177

Total liabilities

15,742

19,050

25,662

27,107

27,983

Total equity and liabilities

50,230

60,003

72,492

79,137

85,730

May 11, 2016

Wipro | 4QFY2016 Result Update

Cash flow statement (Consolidated, IFRS)

Y/E March (` cr)

FY2014

FY2015

FY2016

FY2017E

FY2018E

Pre tax profit from operations

8,935

11,168

12,082

13,444

14,608

Depreciation

1,111

1,282

1,342

1,520

1,672

Expenses (deferred)/written off

(13)

Pre tax cash from operations

10,033

12,438

13,412

14,952

16,267

Other income/prior period ad

1,165

1,990

1,808

Net cash from operations

11,198

14,428

15,220

16,760

18,075

Tax

(2,260)

(2,462)

(2,658)

(2,958)

(3,214)

Cash profits

8,938

11,965

12,562

13,802

14,862

(Inc)/dec in current assets

(2,653)

(8,181)

(6,910)

(10,229)

(6,292)

Inc/(dec) in current liab.

(828)

2,757

5,453

1,446

875

Net trade working capital

(3,482)

(5,423)

(1,457)

(8,783)

(5,417)

Cashflow from oper. actv.

5,456

6,542

11,105

5,019

9,445

(Inc)/dec in fixed assets

(1,203)

(276)

(1,075)

(300)

(Inc)/dec in intangibles

(889)

(600)

(791)

(Inc)/dec in investments

594

(119)

(104)

(Inc)/dec in net def. tax assets

(Inc)/dec in derivative assets

(24)

(Inc)/dec in non-current tax asset

146

(Inc)/dec in minority interest

Inc/(dec) in other non-current liab

273

510

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

(122)

(34)

Cashflow from investing activities

(1,667)

(826)

(1,338)

(290)

Inc/(dec) in debt

1,006

180

465

Inc/(dec) in equity/premium

(123)

314

(14,441)

9,430

1,593

Dividends

(1,736)

(1,780)

(5,089)

(5,596)

Cashflow from financing activities

(853)

(1,242)

(15,756)

4,341

(4,003)

Cash generated/(utilized)

2,936

4,474

(5,988)

9,070

5,152

Cash at start of the year

8,484

11,420

15,894

9,906

18,976

Cash at end of the year

11,420

15,894

9,906

18,976

24,128

May 11, 2016

Wipro | 4QFY2016 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

companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine

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.

The information in this document has been printed on the basis of publicly available information, internal data and other reliable

sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this

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

responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.

Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot

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

regulatory, compliance, or other reasons that prevent us from doing so.

This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,

redistributed or passed on, directly or indirectly.

Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from

or in connection with the use of this information.

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)

May 11, 2016