Wipro Ltd. share price target

Wipro’s (WPRO) 1% QoQ cc revenue decline stood lower than street / I-Sec’s estimate of flattish growth and was in contrast to the trend of positive growth surprises delivered by peers in Q1FY25-TD.

Underwhelming 1Q revenue performance and 2Q guidance. Cautious demand commentary compared to peers

Wipro has lagged in its execution despite achieving better results and higher deal wins. However, FY25E may show some recovery backed by strong deal wins. Due to lacking the necessary visibility, we recommend a SELL rating on the stock.

Wipro has reported in-line earnings in Q4FY24, with better execution at margin front. Bookings were strong at USD 3.6bn. IT services EBIT margin was impressive, up 40bps QoQ, despite headwinds from wage hikes and revenue decline

Wipro (WPRO)’s IT Services revenue was down 0.3% QoQ in constant
currency (CC) to USD2.66b in 4QFY24 (50bp below our estimate). The
company’s order intake declined 14% YoY to USD3.6b, with large deal TCV at
USD1.2b (up 9.5% QoQ). Management’s 1QFY25 revenue growth guidance
was modest at -1.5% to +0.5% QoQ in CC terms