Wipro’s shares started 10% higher on Monday in an incredible leap that coincided with the company’s outstanding December quarter earnings, which exceeded somewhat low forecasts. The company’s constant currency growth during the quarter decreased by 1.7%, compared to an expected 2.7% decline. Wipro projects that its revenue for the March quarter will either increase by 0.5% or decrease by 1.5%.
Thierry Delaporte, the MD and CEO of Wipro, denied rumours that the board was unhappy with thecompany’s goals and accomplishments in the wake of high-level departures. Delaporte also noted encouraging trends in the consulting industry, pointing out that Capco grew by double digits in the quarter.
The US-listed company’s shares finished 17% higher on Wipro’s earnings this Friday.
Though most brokerages may have increased their price targets on Wipro despite the better-than-feared earnings, no notable upgrades have been announced.
Although Morgan Stanley increased its price objective for Wipro from ₹405, it is still underweight the company. Although there is a preliminary indication of a shift in the company’s business mix, the brokerage stated that it is too soon to declare that to be a trend. Due to less advantageous relative valuations and weaker visibility in the financial year 2025 when compared to peers, it continues to be underweight.Nomura, another brokerage with a target price of ₹410 on the company, is still underweight on Wipro. Nomura thinks that Wipro’s margins won’t likely increase in this fiscal year and that the company is now trading at 19. times the projected earnings per share (EPS) for the fiscal year 2026.
Twenty of the forty-three analysts that follow Wipro still recommend selling the company, while twelve have a “buy” rating. This is roughly half of the experts.
At ₹511.95, Wipro’s shares are 10% up from their preceding trading level, reached in April 2022.
Initial Publication: January 15, 2024, 9:24 AM IST
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