Wipro Stock Price: There is a strong rise in the shares of IT services company Wipro today. Today the company’s stock crossed Rs 305, up by about 8 per cent. Whereas on Friday it closed at Rs 282. The company’s December quarter results were better than expected, after which this rally is being seen in the stock. After the results, the brokerage house has given a mixed opinion on the stock. However, operating margin reaching a 3-year high is being considered the biggest positive factor.
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Wipro’s profit in December quarter increased by 24.66 percent on annual basis to Rs 3366.70 crore. The company has declared an interim dividend of Rs 6 per share for investors. The operational revenue of the company also increased marginally to Rs 22,318.80 crore. The company has estimated the revenue of its IT Services business segment for the fourth quarter to be between $2,602 million and $2,655 million. This may be in the range of (-) 1.0% to 1.0% as compared to the previous quarter. Wipro has closed 17 big deals whose total value is $ 1 billion.
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HOLD rating on the stock
Brokerage house Antique Stock Broking has given HOLD rating to Wipro shares and has kept the target price at Rs 315. This is 5 percent more than the previous closing price of Rs 282. The brokerage says that the company’s IT services revenue stood at $2629 million in 3QFY25, which is 0.1% QoQ growth in CC terms. IT services margin increased by 0.7 percent to 17.5 percent. This is better than anticipated.
The company remains optimistic about keeping margins within a tight range going forward. For 4QFY25, the IT Services business is estimated to grow between -1% and +1% on a quarterly basis in CC terms, which is in line with expectations. Deal momentum was better, with 17 large deals generating a total contract value (TCV) of US$ 1 billion, compared to the average of US$ 1.2 billion in the last 4 quarters due to seasonal factors.
According to the brokerage, Wipro is valued at a 22x forward P/E multiple, which includes a 15 per cent discount to peers like Infosys and HCLT. Following the recent margin commentary, the brokerage has raised its FY26/27 margin estimate by 50 bps to around 17 per cent, which could lead to 4% and 5% EPS growth for FY26/27.
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Neutral rating on the stock
Brokerage house Motilal Oswal has given Neutral rating on Wipro shares and has given the target price of Rs 290, which is close to the current price. The brokerage expects the company’s IT services revenue to grow at a CAGR of 3.1% during FY24-27E. While it is projected to register 17% operating margin in FY25, which should translate into 7.5% CAGR growth in PAT during FY24-27E. The brokerage has raised its FY25E EPS by 5% to take into account the margin beat and kept FY26E/FY27E EPS largely unchanged from its 3Q.
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Global Brokerage View
Brokerage house Nomura has given a ‘buy’ rating on Wipro’s shares and a target of Rs 340. The brokerage said the third quarter results were better than expected, especially in terms of margins. The brokerage also increased its earnings per share estimates for Wipro for fiscal year 2025-27 by 2-5 percent. Brokerage house Macquarie has described Wipro’s margins as positively surprising. The brokerage has given ‘outperform’ rating on Wipro and set a target price of Rs 330. Brokerage house Nuvama Institutional Equities has given a ‘buy’ rating and a target price of Rs 350 for the stock.
(Disclaimer: The advice to invest in stocks is given by the brokerage house. These are not the personal views of Financial Express. There are risks in the market, so take expert opinion before investing)