Wipro Alert: Brokerage cautions on IT stock, stock fell 10% due to weak results, how far can the decline go

Wipro Stock Price :Many brokerage houses have alerted investors about the shares of IT sector giant Wipro. Some brokerage houses have advised selling the stock, while some have advised reducing the shares. At the same time, some have a neutral rating on the stock. At the same time, the target price for the stock has also been reduced. Wipro has performed weaker than expected in the June quarter of the financial year 2025. In the June quarter, the company’s profit increased by 5.21 percent on an annual basis to Rs 3036.60 crore. While the revenue fell by 3.79 percent to Rs 21963.80 crore.

Due to weak results, Wipro’s stock fell 10 percent to Rs 502 today. Whereas on Friday it closed at Rs 557. This year so far the stock has gained 6 percent and 25 percent in the last 1 year.

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Brokerage advised to stay away from the stock

Brokerage house Choice Broking has given a REDUCE rating on Wipro and a target price of Rs 558, which is the same as the current price of Rs 557. The brokerage says that Wipro has made substantial investments to strengthen its capabilities across the organization. Investments in the AI360 ecosystem, combined with the strategic value brought to clients by the consulting business, will help Wipro remain competitive, resilient and a preferred partner to its clients. With the significant growth in the stock in the last month, the brokerage has reduced its rating to REDUCE with a revised target of Rs 558, which implies a 22x PE on FY26E EPS of Rs 25.3.

Brokerage house Motilal Oswal has given a neutral rating on Wipro and reduced the target price by 10 per cent to Rs 500. The brokerage says that we expect the company’s IT services revenue to grow at 1.4% CAGR in FY24-26E. Wipro will achieve 16 per cent operating margin in FY25, which should translate into 8.0 per cent CAGR in PAT in FY24-26. The brokerage has cut its FY25E EPS estimate by 1 per cent and kept FY26E EPS broadly unchanged after its 1Q print, as the current valuation is reasonable.

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These brokerages also gave Sell or Underweight rating

Brokerage house Citi has also given a Sell rating on Wipro, but has increased the target price from Rs 455 to Rs 495. Brokerage house Morgan Stanley has given an Underweight rating on Wipro and has increased the target price from Rs 421 to Rs 459.

Brokerage house Goldman Sachs has given a ‘sell’ rating to Wipro’s stock and has reduced the target price from Rs 450 to Rs 440. Brokerage house Jefferies has given an ‘underperform’ rating to Wipro’s stock and has increased the target price from Rs 400 to Rs 455. Brokerage house JP Morgan has given a ‘neutral’ rating to the stock and has given a target price of Rs 490.

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Advice to hold shares

Brokerage house Nuvama has given a target price of Rs 557 while giving a hold rating on Wipro. According to the brokerage, the year has started slowly. However, signs of improvement are gradually visible, especially in consulting, BFS and consumer. The brokerage believes that the road to industry average growth is long. The brokerage believes that Wipro will perform weaker than its competitors, while its cheap valuation and high dividend yield limit the possibility of a decline in the stock.