Wipro Ltd
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Wipro Ltd is currently navigating a challenging environment characterized by cautious client spending and elongated decision-making cycles, which have resulted in flat to slightly negative revenue trends. Management has highlighted a strategic pivot towards AI-led services, with a focus on operational efficiencies to defend margins, although these investments are currently weighing on profitability. The company reported a strong large-deal pipeline, yet the structural shift towards AI is creating a dual impact: while it presents future growth opportunities, it also pressures legacy revenue streams. Vista's financial outlook reflects these dynamics, anticipating stable revenue growth and margins, albeit with a cautious near-term trajectory. The macroeconomic backdrop remains mixed, with inflationary pressures and tightening liquidity potentially impacting consumer sentiment. Over the next 12-24 months, key opportunities lie in the expansion of AI-native services and geographic diversification, particularly in Europe and APMEA. However, watchpoints include execution risks related to deal ramp-ups and the ongoing softness in discretionary spending, particularly in the Americas and Healthcare sectors
Why We Like This Stock
- Strong large-deal pipeline indicates potential for future revenue growth
- Strategic focus on AI-native services aligns with industry trends and client demand
- Geographic diversification provides a more resilient foundation amidst regional challenges
Things To Watch Out For
- Cautious client spending and elongated decision cycles are hindering near-term revenue growth
- Margin pressures from wage inflation and AI-related investments are impacting profitability
- Execution risks remain high, particularly in converting large deals into revenue amidst a challenging macro environment
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 89,760 | 89,088 | 92,624 | 97,518 | 101,821 |
| Profit Before Tax (Cr.) | 14,514 | 17,435 | 17,342 | 17,382 | 18,573 |
| PBT Margin | 16.2% | 19.6% | 1872.3% | 17.8% | 18.2% |
| Net Profit (Cr.) | 11,068 | 12,909 | 13,076 | 13,020 | 13,840 |
| Earnings Per Share | 11.1 | 13.0 | 13.1 | 13.1 | 14.0 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Axis Securities | ► Hold | 190 | 17-Jul-2026 |
| BNP Paribas | ▼ Sell | 170 | 02-Jul-2026 |
| BofA | ▼ Underperform | 184 | 17-Jul-2026 |
| CLSA | ► Hold | 157 | 03-Jul-2026 |
| Citigroup | ▼ Sell | 150 | 17-Jul-2026 |
| Deven Choksey | ▲ Buy | 205 | 17-Jul-2026 |
| Elara Capital | ▼ Sell | 160 | 17-Jul-2026 |
| Goldman Sachs | ▼ Reduce | 179 | 26-Jun-2026 |
| HDFC Securities | ► Add | 195 | 17-Jul-2026 |
| HSBC | ► Hold | 200 | 01-Jul-2026 |
| ICICI Securities | ▼ Reduce | 153 | 17-Jul-2026 |
| IDBI Capital | ► Hold | 196 | 17-Jul-2026 |
| JPMorgan | ▼ Sell | 155 | 17-Jul-2026 |
| Jeffries | ▼ Underperform | 150 | 17-Jul-2026 |
| Kotak Securities | ▼ Sell | 150 | 17-Jul-2026 |
| Moneycontrol | ▼ Underweight | nan | 17-Jul-2026 |
| Morgan Stanley | ▼ Sell | 161 | 29-Jun-2026 |
| Motilal Oswal | ► Neutral | 160 | 17-Jul-2026 |
| Nomura | ▲ Buy | 190 | 17-Jul-2026 |
| Prabhudas Liladhar | ▼ Reduce | 165 | 17-Jul-2026 |
| UBS | ► Neutral | 200 | 17-Jul-2026 |
Company Overview
Show Company Profile
Wipro Limited operates as an information technology (IT), consulting, and business process services company worldwide. It operates through IT Services and IT Products segments. The IT Services segment offers AI-powered IT and IT-enabled services, including digital strategy advisory, customer-centric design, technology and IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud and infrastructure, business process, cloud, mobility and analytics, research and development, and hardware and software design services to enterprises. It serves customers in various industry sectors, such as communications, media and information services, software and gaming, new age technology, consumer goods, healthcare, medical devices and life sciences, and technology products and services, as well as banking and financial services, energy, manufacturing and resources, capital markets and insurance, and hi-tech. The IT Products segment provides a range of third-party IT products, including enterprise platforms, networking solutions, software and data storage products, contact center infrastructure, enterprise security, IT optimization technologies, video solutions, and end-user computing solutions. It serves enterprises in various industries primarily in the Indian market, such as government, defense, IT and IT-enabled services, telecommunications, manufacturing, utilities, education, and financial services sectors. The company has a strategic alliance with the Indian Institute of Science and the Foundation for Science Innovation and Development to collaborate on research and innovation across frontier technologies. The company was incorporated in 1945 and is based in Bengaluru, India.