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Wipro Share Price Today

Wipro share price

Wipro Shares jumped 10% to hit their 52-week high of Rs 511.95 on Monday following its December quarter results which were in line with estimates. A clutch of brokerages have retained their stance on the stock.Wipro’s consolidated net profit declined nearly 12% year-on-year (YoY) to Rs 2,694 crore in the December quarter. Meanwhile, its consolidated revenue dropped 4.4% to Rs 22,205 crore. Both the bottomline and the topline were largely on expected lines.

Notwithstanding an upward revision in the price target from Rs 385 to Rs 470, Jefferies has maintained an ‘Underperform’ rating on Wipro. Q3 results beat its estimates mainly led by higher margins. Weak Q4 growth guidance and continued headcount declines are not inspiring for the company, it said in a note. The US brokerage raised its EPS estimates by 4-10% on margin beat. With the sharp 18% expected up move as indicated by the ADR, it sees “too much optimism” getting priced in.

BofA: Underperform | Target: Rs 395

 

BofA has maintained an ‘Underperform‘ stance on the counter with a target price of Rs 395. It said that Q3 was a tepid quarter but better commentary is encouraging and the company’s sustainability could help. The brokerage noted revenue decline continuing in Q3 though it expects a lower dip in Q4. Demand commentary is more optimistic now versus earlier and against its peers. Al is becoming an integral part of the company’s large deals, BofA said

Kotak Equities: Reduce | Target: Rs 430

Kotak has retained a fair value of Rs 430 while reiterating a ‘Reduce’ rating on the scrip. “Wipro reported a revenue decline of 1.7% QoQ in CC, closer to the guidance band’s upper end, but weak on an absolute basis. Rigorous cost control enabled a margin beat of 50 bps.” the brokerage note said.

“Management provided the hope of green shoots in discretionary demand, pointing to double-digit QoQ growth in the consulting practice. However, a YoY decline in TCV and guidance of a revenue decline at the mid-point for 4QFY24 do not reflect a quick demand recovery. EPS estimates are largely unchanged,” the note said further.

Nuvama: Hold | Target: Rs 460

Nuvama continues to value Wipro at 18XFY26 PE, yielding a target price of Rs 460 from an earlier target of Rs 450 as it recommended a ‘HOLD’. “Wipro reported weak Q3FY24 IT Services revenue of USD2,656mn (-1.7% CC QoQ/-6.9% CC YoY) – though above our/Street expectations of -2.9%/-2.7% CC QoQ.” the brokerage note said. It has upgraded FY24E/25E/26E EPS estimates by 0.7%/1.6%/1.5%.

Note:Recommendations, suggestions, views and opinions given by the experts are their own.

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