On the BSE, Wipro stock was trading flat at Rs 503.85, compared to the previous close of Rs 500.55. Wipro’s market capitalization today was at Rs 2.63 lakh crore on the BSE.
In 2024, Wipro shares returned single-digit returns. The IT stock, which appeared to be heading for Rs 600 by the end of the previous week, has plummeted following its Q1 report. On July 19, it reached a 52-week high of Rs 580. However, the stock is trading near Rs 500 in the current session, plummeting 9% intraday on July 22 after accounting for the IT major’s June 2024 quarter earnings.
The Wipro stock was trading flat at Rs 503.85 in the current session, compared to the previous close of Rs 500.55 on the BSE. Today, Wipro’s market capitalization reached at Rs 2.63 lakh crore on BSE. On the BSE, 2.51 lakh shares of the company changed hands, for a total turnover of Rs 12.66 crore.
Wipro’s stock has climbed 25% in the previous year and is expected to rise 4.67% by 2024.
Wipro’s stock price has dropped 13.27% since its 52-week high of Rs 580 on July 19.
The mood in IT stocks has remained subdued, with the BSE IT index increasing 14% this year.
The index has climbed by 24.78%, or 100 points, during the last year. Similarly, the Nifty IT index is up 13% in 2024. The index has climbed 34.19% in the past year.
Brokerages are not optimistic about the stock’s long-term prospects. They hold a neutral or bearish view of the IT stock. Here’s what brokerages have reported regarding the future outlook for the IT stock.
“Even though Wipro has improved its results and secured more deals, its execution has lagged. However, FY25E could see some recovery, supported by strong contract wins.” Axis Securities recommended a SELL rating for the stock due to a lack of sufficient visibility.
Nuvama, a brokerage, has set a price target of Rs 557 for the shares.
“Wipro’s slow start this year leaves much to be desired. While we see signs of steady improvement, particularly in consultancy, BFS, and consumer, we believe the route to industry-average growth will be long. We expect Wipro to lag rivals, while its low valuation and high dividend yield minimize the downside risk. Brokerage Nuvama advised to keep the ‘HOLD/SN’ status.
Choice Broking is downbeat on the IT stock. It issued a REDUCE call with a revised target price of Rs 558.
“Wipro has put considerable effort into improving skills across the entire organization.” The investments in the AI360 ecosystem, along with the strategic value the consulting business provides to customers, will enable Wipro to remain competitive, resilient, and a valued partner for its clients. With strong upward stock movement in the last month, we downgrade our recommendation to REDUCE with a reduced target price of INR558, representing a 22x PE on FY26E EPS of Rs 25.3, according to Choice Broking.
Motilal Oswal Securities has a neutral rating on the IT stock. It has lowered its price target by 10% to Rs 500.
“We predict the company’s IT Services revenue CAGR to be 1.4% in FY24-26E. We expect Wipro to achieve a 16% operating margin in FY25, resulting in an 8.0% CAGR in INR PAT over FY24-26. We reduced our FY25E EPS by 1% and left FY26E EPS unchanged following the 1Q print. We continue our Neutral rating because we believe the current valuation is fair. “Our price target implies 20x FY26E EPS,” stated Motilal Oswal.
Read Also: Wipro shares fall 8% following Q1 earnings; new price targets are now available.
