Wipro's IT services reported a CC revenue growth of 0.3% QoQ (our estimate: 1%), as BFSI witnessed some momentum, but other verticals lagged. IT services operating profit margin, which was impacted by a 1x client bankruptcy provisioning (Rs 1.1 billion hit) was down 70bps QoQ at 16.5%.
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Dolat Capital Report
While Wipro Ltd. continues to secure a healthy flow of deal wins, management commentary does not indicate any near-term outperformance.
Vertical-wise outlook too, has not been secular in suggesting a recovery, as BFSI remains decent, whereas consumer and manufacturing segments continue to be marred by tariff-related disruptions and second order impacts.
We value the stock at 20x of FY28E earnings of Rs 13.7 with a target price of Rs 270 and maintain our rating at ‘Reduce', noting no significant triggers in nearterm.
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