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Last Updated : Jan 15, 2020 10:02 AM IST | Source:

What should investors do with Wipro stock post Q3: buy, sell or hold?

The company's IT services business increased 3 percent quarter-on-quarter to Rs 15,100.6 crore in Q3FY20.

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Wipro share price fell 3 percent in early trade on January 15 after the company registered a 3.8 percent sequential decline in consolidated profit at Rs 2,455.9 crore for the quarter ended December 2019.

However, total revenue from operations grew 2.3 percent sequentially to Rs 15,470.5 crore.

The company's IT services business increased 3 percent quarter-on-quarter to Rs 15,100.6 crore in Q3FY20.


IT services revenue in dollar terms rose 2.2 percent sequentially to $2,094.8 million in quarter ended December 2019 and constant currency revenue growth stood at 1.8 percent QoQ.

Also Read - Wipro campus hiring for FY20 doubles from FY19 figures: Saurabh Govil

Kotak Institutional Equities | Rating: Reduce | Target: Rs 265 per share

The research house cut revenue growth estimates and maintain EPS estimates.

The guidance of 0-2% revenue growth QoQ for March 2020 is lower than our estimate, said Kotak Institutional Equities.

The Q3 revenue growth was weak YoY across all verticals, it added.

Morgan Stanley | Rating: Underweight | Target: Raised to Rs 240 from Rs 233 per share

Morgan Stanley raised FY20-22 EPS estimates by 1-3 percent, largely to reflect slightly better margins.

The muted revenue growth and uncertain macro environment merit a P/E of 13x.

Margin beat aided by some provision reversals, while underperformance to peers may continue, it added.

The management commentary indicates that stable demand environment with some macro uncertainties, said Morgan Stanley.

Credit Suisse | Rating: Neutral | Target: Rs 250 per share

The company has delivered a largely in-line quarter, with CC revenue growth of 1.8 percent QoQ. The margin has steadied in 17.5-18 percent mark, with a tighter working capital cycle, said Credit Suisse.

The company reported 40 percent increase in USD 100 million plus accounts versus only 3 percent each for TCS/ Infosys.

The positives include a steady decline in attrition over the last two quarters, it added.

At 09:28 hrs Wipro was quoting at Rs 249.60, down Rs 7.55, or 2.94 percent on the BSE.

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First Published on Jan 15, 2020 10:02 am
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