Investec has reiterated its Sell rating on Wipro with a target price of ₹290, reflecting concerns over the company’s capital allocation strategy and shareholder payouts. The brokerage notes that Wipro holds a robust cash reserve of $6.1 billion, and its new capital allocation policy—expected to align with industry peers—could improve shareholder returns.
While Investec highlights limited downside risks from current levels, it remains cautious, suggesting that the company’s current challenges in matching broader industry performance could weigh on its valuation. The brokerage sees this new policy as a potential stabilizing factor, but further clarity on execution will be critical for any meaningful re-rating.
In the context of Indian IT, Wipro’s strategic decisions will be watched closely amid a competitive landscape shaped by GenAI adoption, GCC headwinds, and regional demand trends.
