Wipro: Q4FY16 Result & Guidance Below Estimates; 615-645 May Be A Big Hurdle Despite Buyback Offer

Trading Idea: Wipro

CMP: 601

Either sell below 615 or on rise around 625-645;

TGT: 584-559*-545-524-507*-495 

TSL> 660

Note: Consecutive closing (3 days) above 660 for any reason, Wipro may further rally up to 680*-720 and 825-850 in the near to long term (alternative bullish case scenario).

Q4FY16 EPS is at 9.08 against consensus of 9.55 (lagged by 4.9%); YOY-9.21; QOQ-9.07

For Wipro (On consolidated basis):

Q4FY16 TTM EPS: 36.12 (FY:16/ACTUAL)

Projected FWD EPS: 39.75-43.85-48.15 (FY:17-19)

Average PE: 15

As par BG metrics and current market parameters:

Present median valuation may be around: 555 (FY:16/TTM)

Projected fair valuations might be around: 585-610-640 (FY:17-19/FWD)

WIPRO	EPS(TTM)	BV(Act)	P/E(AVG)	Low	High	Median	200-DEMA	10-DEMA
Q4FY16/TTM	36.12	150.13	15	550.59	557.29	553.94	559.52	573.23
FY17/FWD	39.75	172.75	15	577.59	584.63	581.11	559.52	573.23
FY18/FWD	43.85	198.65	15	606.65	614.04	610.34	559.52	573.23
FY19/FWD	48.15	228.45	15	635.70	643.44	639.57	559.52	573.23

Analytical Charts: