>WIPRO (BONANZA)

Company Background
Wipro started out as Edible Oil Company before entering FMCG and IT businesses. Currently Wipro is the third largest software exporter from India.

Investment Rationale
Second Largest player in the Indian IT domain behind IBM: ‐ Wipro is the second largest IT service vendor in the Indian Market behind IBM. We expect the company to leverage its strong presence in India and continue to bag multiple contracts in the coming months, which would aid Wipro in reporting incremental revenues in the coming years. The company has bagged following contracts in the recent months:‐

■ Six and a Half year contract worth Rs 1182 Cr from Employee State Insurance Corporation.

■ Order worth Rs 200 CR from LIC.

■ Company bagged order from Unitech wireless executable over a period of Nine years for an undisclosed sum. In its analyst meet, the management had conceded that Q1 and Q2 of FY10 would be tough for the industry as a whole however the company has stated that it had witnessed a pick up in order placement in Feb‐ March months in FY09. Going ahead the company has stated a build up in order book pipeline as clients that were apprehensive about IT budget and new order placement are expected to go ahead with orders placement. The management stated that offshore spending by customers would increase as they look to reduce cost at their end.

■ Company has reported a growth of more than 28% in its topline for FY09. Going ahead, with orders form Indian Sector improving and Clients in US and Europe also seeking a reduction in cost and opting for out sourcing Company’s topline is expected to improve in the coming years and expansion of profit margins can also not be ruled out.

■ The company has cash and bank balance of Rs 4912 Cr on its books that translates to Rs 33.5 per share.

To see full report: WIPRO