Buy Wipro – (Medium Risk & Good Returns)
Detailed Analyses
Why Choose Wipro when there are many other options??
- Six and a Half year contract worth Rs 1182 Cr from Employee State Insurance Corporation.
- Order worth Rs 200 CR from LIC.
- Unitech wireless also placed order with Wipro, executable over a period of Nine years for an undisclosed sum.
- Company has reported a growth of more than 28% in its topline for FY09.
Risk to be considered
The company gets a substantial portion of its revenue from foreign countries. Risk management policies against fluctuation in currency prices may result in fluctuation of profits. The company has been paying Minimum Applicable Tax (MAT) that which will expire in 2010. The company tax rate will change according to the new policy to be announced by the government.
Recommendations
We recommend investors to accumulate at Rs395 with a target of Rs 500 within 3-4 months.
Buy Realty Stocks before the coming budget. The Govt is considering a small stimulus for Realty & Infra-structure space. This may lead to Buying pressure in Realty stocks and cement stocks too. Stocks to Watch: HDIL, DLF, IBRealEstate, India Cements, Prism Cements. Buy with Stop Loss of 5% and hold on the stocks for a month’s time.
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