Wipro Stocks After Q2: After the announcement of quarterly results and share buyback, Wipro is seeing profit recovery today.
Wipro Stocks After Q2: After the announcement of quarterly results and share buyback, Wipro is seeing a profit recovery today. In today’s business, Wipro shares fell by 6.5 per cent to Rs 350. The stock closed at around Rs 376 on Tuesday. However, the company offered better-than-expected results in the second quarter. At the same time, Buyback was also announced for the shares of 9500 crores. Even after this, most experts and brokerage houses are not excited about the growth in the stock. He says that the market share of the company may decrease compared to the Larger Pierce companies.
Fear of lagging behind big companies!
According to brokerage house Goldman Sachs, the company’s guidance for the third quarter has been as expected. The company expects 1.5 to 3.5 percent growth on a quarterly basis. The company’s EBIT has been better than spending control. However, nothing new has been seen in the future business strategy. Despite the good results, there is a fear that the company may lose some market share compared to its peers. The brokerage house has set a target of Rs 277, recommending Sell.
Waiting for a fresh business strategy
According to brokerage house Motilal Oswal, in the last few years, Wipro is an underperformer in terms of growth in Tier 1 companies. The company has high exposure to healthcare and ENU. However, growth is seen in the midterm in some verticals. Margin and cash generation have been impressive. There will also be support from share buyback. But pressure can be seen till fresh business strategy unfolds. The brokerage house has given a target of Rs 385 with a neutral rating. The brokerage has projected 3% / 2% growth in EPS for FY21 / FY22E.
The brokerage house Citi has also neutralized, downgrading Wipro’s rating. A target of Rs 400 has been given for the stock. Brokerage house CLSA also believes that the gap may increase compared to the growth of Pierce companies.
9500 crore share buyback
The company’s board has approved share buyback of Rs 9500 crore. According to this scheme, the company will buy back shares worth 23.75 crore at the rate of Rs 400 per share. According to the company, the approval of shareholders will be required for the buyback plan. Wipro’s share buyback plan is 4.16 per cent of its total paid-up equity share capital on 30 September.
2466 crore profit
IT service provider company Wipro’s net profit declined 3.4 percent to Rs 2,465.7 crore for the quarter ended September 30. Wipro has estimated revenue from IT services business from $ 202.2 to $ 206.2 million in the current quarter. In this way, 1.5 to 3.5 percent growth is expected on a quarterly basis. Wipro’s income was Rs 15,114.5 crore in the July-September quarter of the current financial year.
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