IT company Wipro's shares fell 4.5% to Rs 242.8 on October 17 after its September quarter results. Brokerage firms have split opinions – Nomura gave a ‘Buy’ rating, while Jefferies rated it ‘Underperform’. So far this year, the stock has seen a decline of approximately 19.25%.
Wipro Shares: Shares of IT giant Wipro were trading at Rs 242.8 on October 17, falling 4.5% after the September quarter (Q2FY26) results. American Depositary Receipts (ADRs) also saw a 2.5% decline. Brokerage firms' opinions remained divided – Nomura gave a ‘Buy’ rating with a target of Rs 280, while Jefferies rated it ‘Underperform’ with a target of Rs 220. So far this year, the stock has seen a decline of approximately 19.25%.
Quarterly Results
Wipro released its September quarter results after market close on Thursday evening. Following this, American Depositary Receipts (ADRs) listed on the US stock market also saw an overnight decline of 2.5%. According to the quarterly figures, the company performed in line with expectations on most parameters.
Out of 46 analysts covering Wipro's stock, only 13 have recommended 'Buy'. Meanwhile, 16 analysts recommended 'Sell', and 18 advised 'Hold'. Global brokerage firm Nomura has maintained its ‘Buy’ rating on the stock and set a target price of Rs 280. This indicates an upside of approximately 10% from the current level.
Nomura's View
Nomura states that the company's deal wins remain b, and there is a commitment to maintain EBIT margins within a tight range, despite some headwinds. According to Nomura, Wipro's dividend yield for FY27 is 4%, and the stock is trading at a valuation of 19.8 times its estimated earnings per share (EPS) for FY27.
Jefferies' Rating
Meanwhile, global brokerage firm Jefferies has given an 'Underperform' rating for Wipro's stock and set a target price of Rs 220. This implies a potential decline of approximately 13% from the current level. Jefferies stated that, excluding a one-time expense of Rs 120 crore, the September quarter results were in line with estimates. However, b deal bookings indicate future improvement.
Jefferies has estimated the company's EPS growth to be only 3% CAGR between FY26 and FY28. Even adding a 3% dividend yield, the stock's risk-reward profile is no longer attractive for investors.
Current Status of Shares
Around 10 AM, Wipro's shares were trading at Rs 242.21, down by 4.57 percent. So far this year, the company's shares have registered a decline of approximately 19.25 percent. Investors and experts are closely watching the company's future strategy and quarterly performance following this fall.
Implications for Investors
The company's quarterly results were in line with or slightly above expectations. Experts suggest that b deal bookings and emerging projects in the future could prove positive for the company in the long term. However, some brokerage firms have given a cautious rating for the stock and consider it risky at current levels.
