Wipro Limited shares rose 5 percent to hit a 52-week high on January 23 following positive market sentiments since the recent Q3 result announcement.
At 1:30 pm on January 23, Wipro shares were trading 3 per cent higher at Rs 319. The December quarter marked Wipro’s fourth straight quarter of margin expansion, pushing its EBIT margin to a three-year high.
It reported a 4.5 percent quarter-on-quarter rise in consolidated net profit at Rs 3,354 crore for the December quarter, while revenue grew marginally by 0.1 percent to Rs 22,319 crore.
In Q3FY25, Wipro’s IT services revenue was $2.6 billion The company posted an order intake of $3.5 billion, a decline of 1.3 percent quarter-on-quarter, while large deal TCV fell 35 percent quarter-on-quarter to $0.96 billion.
EBIT margin for IT services stood at 17.5 percent. EBITDA grew 4 percent quarter-on-quarter and 12.5 percent year-on-year to Rs 47 billion, higher than estimates of Rs 45 billion. PAT for the quarter reached Rs 33.6 billion, up 4.7 percent quarter-on-quarter and 4.7 percent year-on-year.
For the 9-month period of FY25, revenue declined 1.4 percent, while EBIT and PAT grew 11.4 percent and 16.7 percent, respectively, compared to the same period last year.
Motilal Oswal has a “Neutral” rating with a target price of Rs 290, while Citi has maintained a “Sell” rating with a target price of Rs 280, although it has lifted its “Negative Catalyst Watch” on the stock. Nomura has a “buy” rating with a target price of Rs 340, citing improving discretionary demand despite soft Q4 guidance.
Meanwhile, Macquarie has recommended an “outperform” rating with a target price of Rs 330.
Wipro shares rise 5% to 52-week high after strong Q3 earnings
