Several major brokerages have shared their views on Wipro after the company’s Q2 FY25 results. Opinions are mixed, with brokerages pointing to different growth expectations and earnings potential. Here’s a detailed breakdown of their ratings and target prices:
| Brokerage | Rating | Target Price (Rs) | Key Points |
|---|---|---|---|
| Morgan Stanley | Underweight | 500 | Expects continued underperformance due to lagging revenue growth, but sees downside support from high FCF yield. |
| Nomura | Buy | 680 | Strong large deal momentum in Q2, with early signs of recovery in discretionary demand. Positive margin execution. |
| Jefferies | Underperform | 465 | Q2 beat expectations, but margin performance driven by one-offs; weak growth outlook with 3Q guidance disappointing. |
| Citi | Neutral | 1960 | Decent Q2 results with revenue growth at 3.1% QoQ; large deal TCV down 7.4% YoY; guidance suggests no growth in H2. |
Summary:
- Morgan Stanley has maintained its ‘Underweight’ rating, citing Wipro’s lagging revenue growth compared to peers and limited visibility of improvement. However, high free cash flow (FCF) yield offers downside support.
- Nomura remains positive with a ‘Buy’ rating, noting strong deal wins in Q2 and signs of recovery in discretionary demand, despite weak seasonality in Q3.
- Jefferies retains its ‘Underperform’ stance, pointing to Q2 beating estimates due to higher income and one-offs, but expressed concerns about broader revenue pressures and weak growth outlook.
- Citi kept a ‘Neutral’ rating, observing decent Q2 performance but noted a decline in large deal TCV and suggested no growth in the second half of FY25 based on guidance.
Disclaimer: The information provided in this article reflects the views and target prices shared by various brokerage firms and is for informational purposes only. It should not be construed as investment advice or a recommendation to buy, sell, or hold any stock. Readers are advised to conduct their own research and seek independent financial advice before making any investment decisions. Neither the publication nor the author is responsible for any investment actions taken based on this information.
