Wipro’s shares went up by 10% and hit a new high of Rs 511.95 on Monday after revealing their earnings for the December quarter, which matched predictions. However, different financial experts have different opinions on the stock. Jefferies and BofA still say it’s not doing great (‘Underperform’), Kotak Institutional Equities suggests reducing, and Nuvama thinks it’s okay to hold onto it for now.
In the last three months of the year, Wipro’s overall earnings went down by about 12%, making around Rs 2,694 crore. At the same time, the total revenue also fell by 4.4%, reaching Rs 22,205 crore. These results were pretty much as expected, showing a decrease in both profit and overall income.
What Analysts Are Recommending:
Jefferies: Below Average Performance with a Target of Rs 470:-
Jefferies still thinks Wipro’s performance isn’t great, even though they increased their expected price from Rs 385 to Rs 470. Wipro did better than expected in Q3 because they made more money from their business, but Jefferies is worried about the company’s future growth and the fact that they keep reducing their workforce. Jefferies feels that there’s too much hope in the air, especially with a predicted 18% increase, and even though they raised their estimates for how much money Wipro will make, they’re still being cautious.
BofA: Below Average Performance with a Target of Rs 395:-
BofA still thinks Wipro might not do so well and keeps a target of Rs 395. Even though Q3 wasn’t super impressive, BofA likes the positive comments about Wipro’s future. They know Wipro’s earnings went down a bit in Q3, but they expect a smaller decrease in Q4. BofA also says that people are feeling more positive about Wipro’s business now compared to before, especially when compared to other companies. They also mention that Artificial Intelligence (AI) is becoming a bigger part of Wipro’s important deals.
Kotak Equities: Reduced Performance with a Target of Rs 430:-
Kotak thinks Wipro’s value is fair at Rs 430 but suggests reducing investment (‘Reduce’ rating). Wipro’s sales went down by 1.7% compared to the previous quarter, which is close to what was expected but still not great. The company managed to save money and beat expectations on profit margins.
Although Wipro’s management is hopeful about growth in certain areas, like consulting, the note from Kotak raises concerns. It points out that the total business they secured and the expected revenue decline in the next quarter don’t show a quick recovery in demand. Kotak hasn’t changed its prediction for how much Wipro will earn per share.
Nuvama: Holds Performance with a Target of Rs 460:-
Nuvama thinks it’s a good idea to keep Wipro for now and values it based on how much money they expect it to make in 2026. They increased their target price from Rs 450 to Rs 460. Wipro’s recent performance in the IT Services sector wasn’t super strong, but it was a bit better than what Nuvama and others predicted. Because of this, Nuvama has raised its estimates for how much Wipro will earn in the years 2024, 2025, and 2026.
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