In response to the results, the US-listed shares of Wipro, or ADRs ended 11.5% lower on Friday night.
Wipro’s constant currency revenue declined for the sixth straight quarter as the 1% drop was contrary to expectations of revenue growth being flat.
For the September quarter, the company expects revenue growth to be between -1% to 1% in constant currency terms.
Brokerage firm Citi has maintained its “sell” rating on the stock with a price target of ₹495, adding that Wipro’s growth differential compared to its peers stays and hence the valuation differential will also stay.
Morgan Stanley is also “underweight” on Wipro with a price target of ₹459. It said that there are early signs of recovery tailwinds, but the Wipro will need to execute better to benefit from the same.
Out of the 44 analysts that have coverage on Wipro, 23 of them have a “sell” or equivalent rating on the stock, 12 of them said “hold”, while nine analysts have a “buy” recommendation on the stock.
Wipro had received a slew of upgrades in the run up to its earnings, including a double-upgrade from CLSA, earlier this month.
Shares of Wipro are trading 7% lower on Monday at ₹518.3. The stock has given up half of the gains it made in the month gone by and is still up 8.6% so far for 2024. This is the biggest single-day drop for the stock since March 2020.
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
