wipro shares: Wipro shares plunge over 7% post Q1 results. Should you buy, sell or hold?

The same stood at Rs 2,870 in the year-ago period.

However, the revenue from operations stood at Rs 21,964 crore, which was lower by 4% than the Rs 22,831 crore reported by the company in the corresponding quarter of the last financial year.

Wipro’s PAT was above Street’s estimates of Rs 2,993 crore while the revenue was lower than the estimates of Rs 22,258 crore.

Additionally, Wipro’s American Depository Receipts (ADRs) also fell nearly 12% on Friday to hit the day’s low of $6.08 on the New York Stock Exchange after its Q1 update.Here’s how brokerages viewed the Q1 update:

Nomura: Buy| Target price: Rs 600

“Wipro’s 1QFY25 revenue of USD2,626 million (-1.0% q-q and -4.9% YoY in constant currency or cc terms) was below Bloomberg consensus of flat q-q revenue and towards the bottom end of its guided band of -1.5% to +0.5% q-q in cc,” said Nomura in its report, adding that the growth was driven by top accounts with top-25 clients growing by 1.3% QoQ.While the 2Q growth guidance is slightly lower than Nomura’s expectations of 0% to +2%, Wipro noted that it is entering into 2Q with a higher confidence than when it was entering into 1Q.

Citi: Sell| Target price: Rs 495

Citi has maintained a sell view on Wipro and has hiked the target price to Rs 495 from Rs 455. The Q1 growth was below expectations and guidance implies slow recovery. Wipro’s growth differential vs peers stays and so will valuation differential. According to Citi, the stock is up 27% since June factoring in a sharp recovery and there are no early signs of that.

Morgan Stanley: Underweight| Target price: Rs 459

The global brokerage firm Morgan Stanley has maintained an underweight call on Wipro while hiking the target price to Rs 459 from Rs 421.

For Q1, the revenue growth gap vs. peers is expected to continue. Morgan Stanley expects Wipro to continue to lag peers on revenue growth in the near term and this would keep its P/E multiple at a steep discount to peers. There are also early signs of recovery tailwinds, but Wipro needs better execution to benefit from them.

Nuvama: Hold| Target price: Rs 530

Management is seeing momentum in consumer and US BFS, although Wipro’s performance and guidance failed to inspire. Nuvama tweaked the FY25E and FY26E (< 2% each) due to a slightly lower growth assumption. The domestic brokerage firm stated that they are introducing FY27 estimates and rolling over the valuation to 20x Sep-26E PE (earlier 18x) on the improving industry growth environment.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)