Wipro Shares Fall After Q3 Results, Brokerages Retain Ratings On Stock

Most analysts retained their ratings for Wipro Ltd. after the software services firm’s third-quarter results met consensus estimates.

The company’s revenue from the information technology business rose 2.2 percent on a sequential basis—in line with analyst estimates.

The company has guided for a 0-2 percent sequential growth in revenue in the fourth quarter. Brokerages, however, remained cautious on its revenue growth next fiscal.

On Wednesday, Wipro shares declined the most since Sep. 23, 2019, falling as much as 3.48 percent to Rs 248.25 apiece in opening trade.

Here’s what brokerages have to say about Wipro’s Q3 Results:

Morgan Stanley

• Maintain Underweight; Hikes target price to Rs 240 from Rs 230 (6.6 percent downside).
• IT services revenue and margins were largely in line.
• Management seemed confident about FY21 growth prospects due to a strong deal pipeline.
• Still expect growth rates to be lower than peers.

HSBC

• Maintain Hold with target price of Rs 270 (5 percent upside).
• Q3 results were in line, but Q4 guidance misses street estimates.
• Commentary on a strong deal funnel a positive.
• FY21 revenue growth still unlikely to converge with the industry.

UBS

• Maintains Sell with Target of Rs 215 (16 percent downside).
• Constant-currency growth was in line with expectations.
• Slowdown seen in banking likely to raise concerns in FY21.
• Guidance of 0-2 percent growth was also per expectations.

Also Read: FPIs Turn Buyers Of Indian IT Stocks First Time In Nine Months

Edelweiss

• Maintains Hold, Target of Rs 265 (3 percent upside).
• Subdued quarter dragged by weakness in Europe.
• Digital offerings continue to plug leak in legacy business.
• Growth has been hard to come by; continues to underperform peers.