Wipro’s Q3 Results Prompt Target Price Hikes; Stock Rebounds After Opening Drop
Wipro is worst performer on the Nifty 50.
Wipro Ltd.’s stock recovered from its biggest single-day losing since October of last year as analysts raised price targets on the software services provider.
The company’s revenue rose 3.7% over the previous quarter to Rs 15,670 crore in the quarter ended December, aided by a ramp-up in spending on technology as uncertainties stemming from the Covid-19 pandemic waned. Dollar revenue rose to $2,071 million from $1,992.4 million.
Its net profit rose 20.3% sequentially, while EBIT margin hit a 22-quarter high. Wipro now expects revenue from IT services to grow 1.5-3.5% in the quarter ending March 2021.
Shares of Wipro rose as much as 10% after dropping 6.3% in early trade. The stock, however, pared most of its gain, trading 0.3% higher at Rs 460 apiece as of 2:15 p.m. Of the 48 analysts tracking the company, 16 have a ‘buy’ rating, 17 suggest a ‘hold’ and the remaining 15 recommend a ‘sell’. The stock trades 8.4% higher than its Bloomberg consensus 12-month price target of Rs 405.5 apiece.
Wipro's peers, HCL Technologies Ltd., Infosys Ltd. and Tech Mahindra Ltd. fell between 2% and 5% in early trades.
Here’s what analysts have to say: