Neutral Wipro; target of Rs 360: Motilal Oswal

Motilal Oswal recommended Neutral rating on Wipro with a target price of Rs 360 in its research report dated April 28, 2023.

Broker Research

April 28, 2023 / 17:58 IST

Neutral

26 Aug, 2025 12:21

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Motilal Oswal's research report on Wipro

Wipro (WPRO) posted a 0.6% QoQ CC decline in 4QFY23 IT Services revenue due to weak macro and cuts in discretionary spends despite a strong order intake over the last few quarters. Its 1QFY24 revenue guidance of -3% to -1% CC reflects further hit from cuts in discretionary spends and consulting practice. The company’s 4QFY23 EBIT margin in IT Services was flat QoQ to 16.3% and in line with our estimates. Amid macro uncertainties, management guided for flat margins in 1QFY24. WPRO’s weak 1QFY24 revenue guidance and soft near-term outlook were negatives given the continued strength in deal momentum over the last few quarters. Management indicated that slower decision making and cuts in discretionary spends should continue to impact 1QFY24 adversely.

Outlook

We cut our FY24E/FY25E EPS by 7.2%/4.4% to factor in weaker FY24E growth due to a lower exit rate in 4QFY23 and muted 1HFY24. Reiterate Neutral as we view the current valuation as fair. Our TP of INR360 implies 14x FY25E EPS.

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