Wipro’s Q2 results place stock under pressure- Should you buy, hold or sell the stock-

Wipro’s Q2 results place stock under pressure: Should you buy, hold or sell the stock?

The share price of Wipro tanked 4.25% to Rs 390.10, a day after the company posted second-quarter profit at Rs 2,646.30 crore, down 0.5% as against Rs 2,659.00 crore during the same period last year. Wipro saw its attrition falling to 15.5% in the September quarter, from 17.3% in the June quarter. Utilisation for Wipro has, however, improved to 84.5% in the September quarter. The company said it is paying a standard 80% variable pay to its employees in Q2.

Wipro’s share price fell 4.45% in the last five days, 8.34% in the last one month, while it gained 9.28% in the last six months and 4.30% in the last one year.

Choice Broking: Add – Target Price: Rs 445

“Wipro is investing in technology infrastructure, optimizing operations, and enhancing delivery to foster profitable growth. The company is focused on training and upskilling the workforce to prepare them for an AI-driven future. The investments in the AI360 strategy are yielding substantial efficiencies across the organization. The company is confident that these investments will bolster its resilience and competitiveness in the ever-changing business and economic landscape. We have introduced FY26E and expect Wipro to deliver a Revenue/EBIT/PAT CAGR of 4%/9%/9% respectively over FY23-FY26E. We upgrade our rating to ‘Add’ with a revised Target Price of Rs 445, implying a 16.5x (unchanged) PE on FY26E EPS of Rs 27.

JM Financial: Buy – Target Price: 450

“We lower Wipro’s FY24-26E USD revenue by 4-5% and EPS by 3-6% as we build a weaker than expected near-term growth outlook. That said, Wipro– owing to higher consulting/BFS exposure – could be first off the block when demand turns. Besides, an undemanding valuation (16x FY25E EPS) is in its favour. We therefore remain constructive, though are cognizant of lack of immediate triggers. Maintain ‘Buy’ with an unchanged Target Price of Rs 450.

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