Wipro’s stock opened and closed at Rs 394.35 on the last trading day; Should you invest?
Wipro Stock Price Today: Shares of IT major Wipro hit 10-month high of Rs 421.95, gaining 4.2 per cent on the BSE in Monday’s intra-day trade. In the past two trading days, the stock of the information technology (IT) services company has surged more than 7 per cent after the company posted a net profit of Rs 2,870 crore in the first quarter ended June (Q1FY24), up nearly 12 per cent from a year ago but down 6.6 per cent quarter-on-quarter (QoQ).
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Wipro’s stock opened and closed at Rs 394.35 on the last trading day. The highest price reached during the day was Rs 405.5, while the lowest price was Rs 392.55. The market capitalization of the company is Rs 210,949.92 crore. The 52-week high and low for the stock are Rs 444.65 and Rs 351.85 respectively. The total volume of shares traded on the BSE was 1,547,869.
Wipro’s consolidated net profit for Q1FY24 rose by 12 per cent year-on-year (YoY) to Rs 2,870.1 crore. But sequentially it was down 6.65 per cent. Income from operations for the quarter stood at Rs 22,831 crore, up 6 per cent YoY and down 1.5 per cent QoQ.
Wipro’s weak first quarter (Q1FY24) performance and September quarter (Q2FY24) guidance reaffirm its troubles with converting deal-wins into growth. The decline in Q1 and possibly Q2 translates into possibly the lowest growth among large-caps – might even report a decline in top line year-on-year (YoY), according to analysts.
Should you Buy, Sell or Hold Wipro Shares?
In the short term, the whole IT pack may continue to feel pressure due to softness in demand and ongoing macro challenges. In the case of Wipro, long term trend is expected to improve as demand is set to get back on track as well as investment in Automation and Gen AI based products & solutions will aid growth, analyst at Religare Broking said.
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“However, in the short term, it is still struggling for a stable revenue growth trend. The management, too, remains cautious and has projected soft revenue for Q2FY24 as clients discretionary spending is likely to be delayed. So, these concerns are still hovering around, and thus we maintain a Hold rating with a target price of Rs 432,” the brokerage firm said in a result update.
Motilal Oswal Financial Services has a ‘neutral’ view on Wipro with a target price of ₹380. The brokerage firm cut its FY24E/FY25E EPS by 3.5 per cent/4.9 per cent to factor in weaker FY24E growth due to a weak start in Q1FY24 and a higher share count.
“Given Wipro’s weak Q1FY24 earnings and muted Q2 guidance, we expect its FY24 organic growth to be one of the lowest among tier-1 IT Services peers, with a margin below the management’s medium-term guided range of 17-17.5 per cent,” said Motilal Oswal.
“We maintain our neutral rating as we await: (1) further evidence of the execution of Wipro’s refreshed strategy, and (2) a successful turnaround from its struggles over the last decade before turning more constructive on the stock. Our target price of Rs 380 implies 16 times FY25E EPS,” said Motilal Oswal.
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Technical analyst Mitessh Thakkar of earningwaves.com gave Wipro a Buy call He recommends this with a stop loss below Rs 397 for an upside target of Rs 422. Shares have gained more than 7 per cent in the last month.
