On Thursday, April 17, Wipro Ltd. shares fell nearly 6 percent. The main reason for this was the rating cut and target price reduction by brokerage houses after the company’s March quarter results. The company reported January-March quarter results after market close on Wednesday, in which constant currency revenue declined by 0.8%.
Wipro Q4 Results: Revenue and Market Expectations
The company had already forecast this decline – the company’s estimate was between -1% to +1% – but the market was expecting only a 0.2% decline, so the actual figure was weaker than expected.
Analyst Reactions and Brokerage Ratings
The company has forecast revenue between $2,505 million and $2,557 million for the first quarter of FY 2025-26, which means a decline of 1.5% to 3.5%. This decline is also affecting investor sentiment.
Nuvama Downgrades Wipro to ‘Hold’, Cuts Target to ₹260
Nuvama Institutional Equities has downgraded Wipro’s rating from ‘Buy’ to ‘Hold’ and reduced its target price to ₹260 (earlier ₹300).
They had upgraded Wippro a few months ago on the back of better discretionary spending and low valuations, but both the fundamentals seem to be weakening now.
Emkay Global has also retained its ‘Reduce’ rating and given a target price of ₹260.
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