Wipro shares rise 5% to hit 52-week high post-strong Q3 earnings

Wipro shares gain about 5% as an all-time high for 52 weeks

Wipro Ltd shares rose 5 percent on January 23 to hit 52-week high following positive market sentiments since its Q3 result announcement recently.

At 1:30 pm on January 23, Wipro shares were trading 3 percent higher at Rs 319 apiece.

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The December quarter turned out to be Wipro's fourth straight quarter of margin expansion, pushing its EBIT margin to a three-year high. It reported a 4.5 percent quarter-on-quarter growth in its consolidated net profit at Rs 3,354 crore for the December quarter, while revenue saw a marginal rise of 0.1 percent to Rs 22,319 crore.

In Q3FY25, Wipro's IT Services revenue was $2.6 billion, representing a 0.1 percent quarter-over-quarter (QoQ) increase in constant currency (CC). The company posted an order intake of $3.5 billion, a decline of 1.3 percent QoQ, with large deal TCV falling 35 percent QoQ to $0.96 billion. The EBIT margin for IT Services stood at 17.5 percent. EBITDA rose 4 percent QoQ and 12.5 percent YoY to Rs 47 billion, surpassing estimates of Rs 45 billion. PAT for the quarter reached Rs 33.6 billion, 4.7 percent higher QoQ and 4.7 percent YoY.

For the 9-month period of FY25, revenue declined by 1.4 percent, while EBIT and PAT grew by 11.4 percent and 16.7 percent, respectively, compared to the same period last year.

Motilal Oswal has assigned a "Neutral" rating with a target price of Rs 290, while Citi maintained a "sell" rating with a target price of Rs 280, although it has lifted its "negative catalyst watch" on the stock. Nomura has a "buy" rating with a target price of Rs 340, citing improving discretionary demand despite softer Q4 guidance. Meanwhile, Macquarie recommends an "outperform" rating with a target price of Rs 330.