Accumulate Wipro; target of Rs 279: Deven Choksey

Deven Choksey recommended Accumulate rating on Wipro with a target price of Rs 279 in its research report dated July 18, 2025.

Broker Research

July 18, 2025 / 10:49 IST

Accumulate

Deven Choksey's research report on Wipro

Revenue came in at INR 2,21,346 Mn. (-1.6% QoQ/+0.8% YoY), in-line with our estimates. Growth was majorly driven by traction across Technology and Healthcare. IT Services USD Revenue stood at 2,587 Mn. (-2.0% QoQ CC/ -2.3% YoY CC), below our expectations of -1.2% QoQ CC growth. EBIT came in at INR 35,724 Mn. (-8.6% QoQ/-1.0% YoY), below our estimates by 4.3% driven by sharp decline in EBIT margins. EBIT Margin declined sequentially by 123bps (-28bps YoY) to 16.1%, below our estimates by 93bps, on account of one-time restructuring expense in the Europe region.

Outlook

We have rolled forward our valuation basis to Jun’27 estimates. We value Wipro at 21.0x (~at its 3-year Avg. NTM P/E) Jun’27 EPS, implying a target price of INR 279 per share. Wipro is currently trading at 1-year NTM P/E of 21.0x, below the peer average of 25.5x, due to its weaker revenue and net profit growth. We reiterate our “ACCUMULATE” rating on the stock.

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