Nomura has maintained its ‘Buy’ rating on Wipro but has revised the target price to ₹280 per share, citing macroeconomic pressures and a subdued earnings outlook. The stock is currently trading at ₹247.60, indicating a potential upside of over 13% from current levels.
The brokerage highlighted that Q4 FY25 results were a mixed bag, with revenue and margin trends reflecting a challenging demand environment. It noted that macro uncertainty is impacting client decision-making and delaying deal closures, which has weighed on the company’s Q1 FY26 revenue guidance.
Nomura does not expect further margin improvement in the near term, given the weak revenue outlook. As a result, it has cut its FY26–27 EPS estimates by 2–4%.
Despite these concerns, Nomura points out that Wipro’s FY27 dividend yield stands at 4%, and the stock is currently trading at 18.6x FY27 earnings, offering reasonable valuations in the context of the broader IT sector.
Investors will now watch for management commentary and deal pipeline visibility as key drivers of re-rating in the coming quarters.
Disclaimer: The above view is that of the brokerage and not the author or the publication. Please consult a certified financial advisor before making any investment decisions.
