Shares of Bengaluru-based software services provider Wipro Ltd. gained over 6% on Friday, October 16, in response to its September quarter results, that were better than analyst expectations on the margin and the revenue growth front.
Wipro’s revenue in constant currency terms stood at 0% sequentially, but the street was anticipating it to be a negative 0.75%. Similarly, at 16.5%, Wipro’s EBIT margin turned out to be better than street expectations of 16%.
This is the fourth straight day of gains for Wipro, which is now up 13.5% for the week, its best since October 2020, when it had gained 19% during a week. The stock has also rebounded nearly 20% from its 52-week low of ₹156.75.
Global Investment Banking Firm Nomura has the joint fifth-highest price target on Wipro at ₹200 apiece, which it shares with UBS, Dolat Capital and Investec as well. Nomura has a “buy” rating on the stock.
Nomura wrote in its note that the guidance given by Wipro for the third quarter is in-line with their expectations and that the company will return to the 17% to 17.5% EBIT margin band over a period of time.
On the bearish side, Citi maintained its “sell” rating on Wipro with a price target of ₹145, which it the second-lowest on the street for Wipro after CLSA.
Among the largecap IT names, Wipro has the highest number of “sell” recommendations, as analysts continue to remain cautious on the stock after its prolonged underperformance.
A total of 20 out of the 44 analysts who track Wipro have a “sell” rating on the stock. This is in comparison to TCS’ five (out of 49), four for Infosys (out of 49), 10 for HCLTech (out of 45), five for Tech Mahindra (out of 44), and 11 for LTM (out of 44).
| Stock | Total Analysts Covering | No. Of Sell Ratings |
|---|---|---|
| Wipro | 44 | 20 |
| Infosys | 49 | 4 |
| TCS | 49 | 5 |
| HCLTech | 45 | 10 |
| Tech Mahindra | 44 | 5 |
| LTM | 44 | 11 |
The consensus estimate of price targets on Wipro imply a downside potential of 5.7% on the stock.
For the third quarter, Wipro expects its revenue growth in constant currency terms to be between a negative 1.5% to a positive 0.5%, which is in-line with what the street is anticipating.
Shares of Wipro are trading 6.4% higher on Friday at ₹185.17. This is the biggest single-day gain for the stock since May 2025. Despite the surge, Wipro’s shares remain the worst performers on the Nifty IT index on a year-to-date basis, down 30% so far for the year.