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Wipro share price falls 6% post Q4 results; brokerages cut target price

Key brokerages cut Wipro's target price after the IT firm reported muted results on April 15.

April 16, 2020 / 09:27 AM IST
 
 
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Wipro's share price declined 6 percent in the early trade on April 16 after company reported muted numbers for the quarter ended March 2020.

On April 15, the company has reported a 5.3 percent sequential fall in its consolidated profit at Rs 2,326.1 crore for the quarter ended March 2020.

However, the company's IT services revenue was up 1.3 percent at Rs 15,296 crore against Rs 15,100.6 crore, QoQ.

The company has not provided revenue guidance for the April-June quarter on account of uncertainty over COVID-19.

Morgan Stanley

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Research house has kept underweight call with price target at Rs 180 per share.

Covid-19 poses the significant risks to FY21, while investors will be monitoring the leadership transition in the near term.

It has cut FY21/22 EPS estimates by 4.9%/3.6%

The company plans to control the costs aggressively in FY21.

CLSA

The broking house has retained sell rating, while cut target to Rs 180 from Rs 235 per share.

Q4 revenue & margin have declined, while company withdrawn the guidance.

The growth has been dragged by manufacturing & BFS. The margin has declined 77 bps QoQ, partly led by disruptions due to Covid-19.

The company’s revenue is expected to be weak in Q1FY21 due to low demand. It has cut revenue estimates by 8-9% & margin by 50-100 bps for FY21-22.

ALSO READ: Wipro to get its new CEO by June; pegs coronavirus impact at $14-16 million in Q4

Jefferies

Research house maintained hold call and cut target to Rs 185 from Rs 190 per share.

The guidance has suspended, while significant demand pressure expected. The earnings are below estimate due to weaker margin.

The growth underperformance is likely to continue in the down cycle, while it has maintained hold noting undemanding valuation & significant cash on book.

At 09:20 hrs Wipro was quoting at Rs 183.40, down Rs 3.15, or 1.69 percent on the BSE.
Moneycontrol News
first published: Apr 16, 2020 09:27 am

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