Wipro: Brokerages raise Wipro target price

Mumbai: shares touched an all-time high after the company reported its June quarter results that were ahead of estimates. Most brokerages have raised their target price on the stock after the earnings announcement but many of the revised target prices are below the current stock price. Shares ended up 0.33% at Rs 577.65 after touching a record high of Rs 589 during the day.

It reported a 9% sequential rise in profit to Rs 3,243 crore and revenue from operations rose 12.3% to Rs 18,252 crore. Analysts have largely retained their ratings at neutral or bearish citing rich valuation and concern that margins may come under pressure.

HSBC and Emkay have maintained hold while Nomura and Motilal Oswal are neutral on the stock. “Valuation is building-in elevated expectations based on simplistic extrapolation…we would prefer to wait for a better entry point to gain exposure to the recover,” said CLSA.

YES Securities also said valuation remains stretched as the stock trades at 22 times on FY23 estimated earnings.

“…Wipro should benefit from the sector-wide uptick in demand and is already yielding tangibly better results under the new management, whether it outperforms industry peers consistently remains to be seen,” said HSBC.