Wipro Ltd. share price target

Share buybacks have become a popular way for companies to reward their shareholders, particularly in the IT sector. However, like all expenses, a share repurchase has opportunity costs, which represent the potential benefits a company misses out on when choosing one option over another.

Wipro IT services’ revenue declined -0.6% QoQ CC, -0.7% QoQ US$ lower than ISEC and BBG consensus estimates of +0.5% QoQ US$ and -0.2% QoQ US$, respectively. Revenue grew 11.5% YoY CC in FY23, near to the lower end of the guidance of 11.5 -12%.

Wipro has lagged in its execution despite having better results and better deal wins. We hence maintain our HOLD rating on the stock for lacking the necessary visibility.

Q4 revenue grew 0.6% QoQ CC to US$ 2.8bn due to a drag in technology consumer and communication verticals