NSE: WIPRO – Despite a decline in net profit and revenue for Wipro in Q3 of the current financial year, the company’s shares witnessed a remarkable 13% surge on January 15, reaching a new one-year high.
This unexpected market resilience is drawing attention as Wipro’s consolidated net profit dropped by 11.74% to Rs 2,694.2 crore, accompanied by a 4.4% decrease in revenue to Rs 22,205.1 crore.
Strong Morning Trade Performance
Wipro shares opened at Rs 511.95 on BSE with a significant 10% gain on the morning of January 15, defying the decline in profit and revenue. The stock continued its upward trajectory, touching the upper price band and experiencing a 13% rise from the previous closing price, ultimately reaching a new 52-week high of Rs 526.45.
| Metric | Value |
|---|---|
| Open | 511.95 |
| High | 529.00 |
| Low | 489.15 |
| Market Cap | 2.60 LCr |
| P/E Ratio | 23.37 |
| Dividend Yield | 0.20% |
| 52-week High | 529.00 |
| 52-week Low | 352.00 |
Revised Upper Price Band Reflects Investor Confidence
In response to this bullish trend, the upper price band for Wipro shares has been adjusted to Rs 535.25, showcasing a 15% increase in strength. This suggests a heightened level of investor confidence despite the challenges faced by the company in Q3.
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Analysts Optimistic About Wipro’s Future Growth
Wipro’s Q3 results mark the fourth consecutive quarter of annual profit decline, but analysts from Motilal Oswal view the company’s performance positively. They highlight Wipro management’s comments on securing more deals in the consulting vertical, indicating a potential reduction in the segment’s drag and an overall improvement in the company’s growth trajectory.
Mega Deals and Revenue Expectations
Wipro’s success in securing mega deals worth $0.9 billion in the quarter ending December 2023 has bolstered optimism among analysts. The total deals achieved during this period amounted to an impressive $3.8 billion, providing a strong foundation for future revenue growth.
Consulting Sector Resurgence
IDBI Capital notes early signs of growth in Wipro’s consulting sector and anticipates a revenue boost from the order book, valued at $3.8 billion. As a result, analysts now project an improvement in revenue growth from FY24 to FY26.
Brokerage Ratings and Target Prices
While Motilal Oswal maintains a positive outlook, setting the target price at an undisclosed value, Nuvama remains cautiously optimistic with a ‘hold’ call and a target price of Rs 460. IDBI Capital takes a neutral stance, providing a target price of Rs 520 per share. This diverse expert opinion reflects the nuanced outlook on Wipro’s future performance in the market.
Wipro Share Fundamental analytics
| Metric | Value |
|---|---|
| Market Cap | ₹ 2,59,783.41 Cr. |
| Enterprise Value | ₹ 2,60,437.11 Cr. |
| Number of Shares | 522.44 Cr. |
| P/E Ratio | 27.85 |
| P/B Ratio | 4.85 |
| Face Value | ₹ 2 |
| Dividend Yield | 0.21% |
| Book Value (TTM) | ₹ 102.48 |
| Cash | ₹ 4,527 Cr. |
| Debt | ₹ 5,180.70 Cr. |
| Promoter Holding | 72.93% |
| EPS (TTM) | ₹ 17.85 |
| Sales Growth | 13.73% |
| ROE | 15.82% |
| ROCE | 19.85% |
| Profit Growth | -24.38% |
Conclusion
This article serves as a comprehensive guide to the Wipro Shares Soar 13% to a One-Year High Despite Q3 Profit and Revenue Decline. The information and forecasts are derived from our analysis, research, company fundamentals, historical data, experiences, and various technical analyses. The article delves into the share’s prospects and growth potential in detail. Feel free to comment below if you have any further queries. We are more than happy to address all your questions. If you find this information helpful, consider sharing the article with as many people as possible.
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