Wipro rises 3% post Q2 results, brokerages largely remain mixed

Consolidated revenue from operations for the quarter fell 1.4 percent quarter-on-quarter to Rs 13,468.7 crore due to more than 50 percent fall in IT products business.

Generally the Street looks at company's IT services business that grew by 1.1 percent to Rs 13,168.9 crore compared with previous quarter, supported by BFSI segment. However, lower business from healthcare and life sciences segment limited revenue growth.

IT services revenues in dollar terms grew by 2.1 percent quarter-on-quarter to USD 2,013.5 million in July-September quarter.

Brokerage: Kotak Sec | Target: Raised to Rs 275

Kotak Securities said that share gains in large clients & financial services are primary drivers of performance. Further, weak healthcare & communications dragged overall growth. It highlighted that EBIT margin increased 50 basis points, in line with the estimates. The stock already assumes turnaround even as it remains work in progress.

Brokerage: PhilipCap | Rating: Sell | Target: Raised to Rs 220

The brokerage house said that weak Q3 guidance means that the company would fail to match industry growth rate in FY18. It revised FY18/19 earnings estimates by +7/5% taking into account buyback impact.

Brokerage: Edelweiss | Rating: Downgrade to Hold | Target: Cut to Rs 280

Edelweiss said that Q2 performance was better than the Street’s estimates. With key verticals facing challenges, FY19 revenue growth will at best be at industry levels, it said, adding that the stock currently trades expensive.

Brokerage: IDFC | Rating: Neutral | Target: Rs 265

IDFC said that guidance restricts revenue outlook to mid-single digit. The company continues to lag peers in terms of growth, it added.