Wipro Share Price Today Live: Wipro shares rally as Q2 results beat estimates

Revenue conversion remains a challenge for the company, given its exposure to discretionary areas. The core business challenges and macro uncertainties would keep the top-line growth unstable in the near term. We estimate revenues/earnings CAGR of 4.1%/8.8% over FY24-FY27E. The stock is currently trading at 20x FY27E. We are assigning P/E of 22x to FY27E with a target price of Rs580. We maintain “ACCUMUALTE” rating.

Top gainers on the NSE as at 12 noon:

Axis Bank (5.75%), Wipro (3.39%), Eicher Motors (2.75%), Tata Motors (2.01%), Hindalco (1.93%)

Top losers:

Infosys (-4.38%), ITC (-1.83%), Britannia (-1.54%), Nestle India (-1.39%), Cipla (-1.20%)

Wipro stock traded at ₹345.25 on the NSE, up 3.12% as at 11.10 am.

Wipro board has announced issue of bonus equity shares in the proportion of 1 :1 

Indian benchmark indices Sensex and Nifty opened lower on Friday, extending losses for the fourth consecutive session, as foreign institutional investors (FIIs) continued their selling spree amid escalating geopolitical tensions in the Middle East.

The BSE Sensex opened at 80,749.26, down from its previous close of 81,006.61, while the NSE Nifty started at 24,664.95, sliding from Thursday’s close of 24,749.85.

Technology stocks showed mixed performance in early trade. While Wipro emerged as the top gainer, surging 4.24 per cent following a 21 per cent profit rise and 1:1 bonus share announcement, Infosys dropped 2.37 per cent despite raising its revenue guidance.

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• Macquarie on Wipro: Maintain Outperform on Company, target price at Rs 670/Sh (Neutral)
• Nomura on Wipro: Maintain Outperform on Company, target price at Rs 680/Sh (Neutral)
• MS on Wipro: Maintain Underweight on Company, target price at Rs 500/Sh (Neutral)
• Jefferies on Wipro: Maintain Underperform on Company, target price at Rs 465/Sh (Neutral)

WPRO’s 2QFY25 performance was its best in recent times. Revenues grew 0.6% cc QoQ (JMFe: 0%), a first sequential growth after six quarters of decline. Three out of four markets grew, suggesting broad-based nature of recovery. Its strategic priorities of scaling metal accounts/large deal focus are bearing fruits. Large deal wins (USD 1.5bn) was the highest in 10 quarters. Top-1/4-5/6-10 client buckets outpaced company average. Two of its largest win this quarter came through share gains, allaying concerns of WPRO losing in consolidation scenarios. APMEA showed early signs of improvement. Tech and Telecom returned to growth, on back of USD 500mn deal win in 4Q. CAPCO (+3.4% QoQ) sustained its momentum. There are still areas that need fixing. E&U continues to be beset by client specific ramp-downs. Manufacturing remains a work-in-progress. These, alongside seasonal weakness informed an underwhelming 0-2% cc QoQ guidance for 3Q. Margin performance (+35bps QoQ) despite wage hikes (1 month impact) remains a bright spot. WPRO reiterated its target band of 17-17.5%, which now looks increasingly achievable. As we have argued before, WPRO’s guidance has a recency bias and fails to capture underlying improvements. Deal wins, financial services momentum, headcount growth and stability in senior leadership are building blocks for a return to sustainable growth trajectory. We remain hopeful. It reflects in FY25-27E EPS upgrade of 1-4%. We retain BUY with a TP of INR 640 (from INR 630). A potential capital allocation announcement in Q3 should support the stock. BUY.

Shares of Wipro Ltd traded at ₹555.05 on the NSE, higher by 4.97% as at 10 am.

IT major Wipro has recorded a 21 per cent profit rise, beating market estimates. While revenue and margins reported were largely in line with street estimates in Q2, the outlook for next quarter isn’t encouraging.

On a quarter-on-quarter (q-o-q) basis, profits were up 6.85 per cent. Revenue from operations stood at ₹22,302 crore, registering marginal growth on a sequential basis, and a 1 per cent YoY decline. 

Wipro has tapered its guidance for the next quarter to (-) 2 per cent to 0.0 per cent in constant currency terms. It had guided in the range of -1 to 1 per cent for the second quarter previously.

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