Wipro’s share price is up over 8% after the company reported its quarterly results. Some brokerage houses are however concerned about the IT sector outlook going forward and its implications on the stock-
CITI cautious of Indian IT services
Citi however is not convinced. It has maintained its ‘Sell’ rating on Wipro, with a target price of Rs 280. This was 0.6% lower than Friday’s closing price of Rs 280. The brokerage firm said that it expects a gradual but uneven recovery for the IT industry. The company’s forward-looking indicators remained weak for the whole sector. Further, the cost pressure is expected to hit the company in upcoming quarters with a rising attrition rate. It maintains a cautious view of Indian IT services.
Morgan Stanley sees no negative surprises in the next quarter
Morgan Stanley maintained its ‘Underweight’ rating on the stock, with a target price of Rs 250. The brokerage firm said the company’s margins were ahead of estimates despite the impact of the wage hike. Also, the Q3 FY25 results do not bring any negative surprises for Q4 FY25. The large deals were in line with estimates, according to the brokerage firm.
Nomura maintains ‘Buy’ rating
Nomura raised the earnings per share estimates by 2% for FY25 and 5% for FY27 because the company beat estimates on all parameters, especially margins. The company has started appeasing shareholders with a revised capital allocation policy. In blocks of three years, it will return 70% of net income to shareholders from the existing 45-50%. The brokerage house has maintained a ‘Buy’ rating on the stock, with a target price of Rs 340.
Macquarie hoped for better BFSI performance
The brokerage has maintained its ‘Outperform’ rating on the stock, with a target price of Rs 330. Also, Wipro is a preferred pick over Tech Mahindra due to its turnaround pan, said Macquarie. It estimates that the EBIT will grow by a compounded rate of 11.3% over the next two years. However, it hoped for a better performance in the BFSI segment from the company.
Wipro Q3 earnings
Wipro reported a net profit of Rs 3,353.8 crore in Q3 FY25, up 24.48% year-on-year. It was up 4.5% sequentially. The company’s revenue from operations stood at Rs 22,318.8 crore, up 0.5% on year and 0.07% quarter-on-quarter.
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