Jefferies has maintained its ‘Underperform’ rating on Wipro, with a reduced target price of Rs 465. The company’s Q2 performance beat estimates, driven by better revenues and higher other income. However, Jefferies pointed out that the margin performance was supported by one-offs, which, when excluded, would have resulted in a 90-basis-point decline quarter-on-quarter. Despite some optimism around green shoots in Capco and the BFSI segment, broad-based revenue pressures and disappointing Q3 guidance suggest a weak growth outlook. The brokerage has raised its EPS estimates by 1-3% due to higher other income, but it expects only a 6% EPS compound annual growth rate (CAGR) over FY25-27.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as investment advice. Please seek independent financial advice before making any investment decisions.
