Accumulate Wipro; target of Rs 272: Asit C Mehta

Asit C Mehta report on Wipro

Revenue for Q4FY25 stood at INR 225,042 Mn, up 1.3% YoY (+0.8% QoQ), was in-line with our expectations. EBIT grew to INR 39,087 Mn, up 10.5% YoY (+0.3% QoQ), was above our expectations. Overall EBIT margin stood at 17.4% (- 9bps QoQ / +144bps YoY). PAT grew to INR 35,696Mn, up 25.9% YoY (+6.4% QoQ), was above our expectations led by strong uptick in other income. Net margin expanded 310bps YoY (+84bps QoQ) to 15.9%. Wipro delivered a mixed Q4FY25 performance, with total deal wins TCV remaining strong at USD 4.0 Bn. Growth was driven by the Americas 1, which was partly offset by weakness across Americas 2, Europe and APMEA, as they faced macroeconomic pressures. IT Services EBIT margin remained stable supported by operational efficiencies. We reduce our FY26E/FY27E EPS estimates by 3.9%/6.2% to INR 12.8/13.6.

Outlook

We value Wipro at a P/E multiple of 20.0x on FY27E EPS resulting in a target price of INR 272 per share and upgrade our rating to “ACCUMULATE”. We remain cautious due to Wipro’s weak performance, ongoing challenges in some of its geographies, and underperformance relative to Tier-1 IT peers. A concrete growth path is needed for sustained re-rating.

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Wipro - 17042025 - asit