On Thursday, April 17, shares of Wipro Ltd. were down 6% as analysts who monitor the stock downgraded it, lowered their price targets, or did both in response to the company’s March quarter reports, which caused the Street to adopt a cautious stance.
After market hours on Wednesday, the Bengaluru-based IT services firm released its results. The steady currency sales increase for the January-March quarter was below what the Street had predicted but in line with the company’s objectives.
In contrast to its guidance for growth of between 1% and 1%, Wipro reported a 0.8% sequential fall in constant currency sales for the March quarter. However, the Street was dealing with a 0.2% drop.
Wipro anticipates sales to fall between -1.5% and -3.5% in the first quarter of FY26, from $2,505 million to $2,557 million. Wipro has been downgraded to ‘Hold’ by brokerage company Nuvama Institutional Equities, with cheap values limiting the downside risk. Additionally, the firm lowered its price objective from โน300 to โน260.
Due to its greater exposure to discretionary spending and comparatively low valuations, Nuvama upgraded Wipro a few months ago because it would gain from a resurgence in discretionary spending.
The brokerage does not believe either of the two premises will last much longer due to the swift decline of macro, which has created uncertainty around discretionary spending and caused Wipro’s value to approach those of its competitors, TCS, Infosys, and HCLTech.
Emkay Global has kept its recommendation of ‘Reduce’ on the stock, aiming for a price of โน260 per share.
Source: CNBCTV18
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