Wipro share price jumps 3% after board OKs Rs 12,000 crore buyback; Should you buy, hold, sell Wipro stock-

Wipro share price jumps 3% after board OKs Rs 12,000 crore buyback; Should you buy, hold, sell Wipro stock?

Wipro share price jumped 2.7% to Rs 384.5 today after the IT major’s board approved a buyback of up to Rs 12,000 crore of shares at a price of Rs 445 per share. The company’s net profit fell 10% to Rs 3,149 crore in Q4FY23 from Rs 3,524 crore in the same quarter last year. The IT major posted a revenue of Rs 23,190 crore in Q4FY23, up 11% from Rs 20,860 crore in the fourth quarter of FY22.Stock call: Should you buy, hold or sell Wipro stock?IDBI Capital: Hold – Target Price: Rs 420

“Going forward with levers like higher utilisation, pyramid rationalisation, re-allocation of resources to T&M from the fixed contract and lower lateral hiring will drive margins. However, lower revenue growth and drag from consulting prompt us to keep margins flat for FY24E (at 15%) and then improve to 16% in FY25E. we have lowered our EPS estimates by 6.7% and 2% for FY24E & FY25E. The stock price could get near-term support due to buyback. We maintain our HOLD rating on the stock with a revised target price of Rs 420 (PE of 16x on FY25E EPS),” said analysts at IDBI Capital.

Emkay: Buy – Target Price: Rs 470

“Despite the strong deal intake over the last few quarters, Q1 revenue growth guidance missed expectations, and the divergence between deal intake and revenue conversion remains puzzling. We cut our EPS estimates for FY24/25 by 1.3%/3.4%, factoring in the Q4 performance, buyback and weak Q1 guidance. We maintain BUY on the stock, with a TP of Rs470/share at 17x Mar-25E EPS (earlier, Rs480),” said analysts at Emkay Research.