Target price for Wipro shares in 2025: Should you buy, hold, or sell?
With IT Services sales and EBITDA above the Street projections, Wipro Ltd. produced better-than-expected December quarter results. According to analysts, Wipro’s margin reached a three-year high, and management met expectations for the second consecutive quarter. Despite being lackluster, the IT major’s deal wins were consistent with projections. However, other analysts think there is no potential on the counter and that the company is adequately valued.
The worry relates to the durability of this development, since the Energy, Manufacturing, and Resources verticals, along with Technology, remain poor with some early green shoots, according to Nirmal Bang Institutional Equities, even though Wipro produced respectable performance in a typically weak quarter.
The highlights of Wipro’s Q3 performance were its momentum in big deals (17 in Q3FY25), top account growth (up 8.5% QoQ), the second consecutive quarter of meeting expectations, and three-year high margins.
However, Wipro is now heavily dependent on the expansion of its top clients, has poor deal conversion in Europe, and is developing its leadership in APMEA. We have raised our projections for FY26/27 EBIT by 40/50 bps and FY26/27 EPS by 1.1% each to account for these aspects from the 3QFY25 data. However, in order to account for Wipro-specific challenges, we lowered our revenue projections for FY26 and FY27E by 4.3% each. In order to reach the target price of Rs 306, we retain our HOLD recommendation on Wipro and maintain the valuation multiple of 21.3 times on the December 2026 EPS of 14.4/share,” the statement stated.
The IT company said last week that its consolidated net profit for the December quarter increased by 24.48 percent year-on-year (YoY) to Rs 3,353.8 crore from Rs 2,694.2 crore during the same time last year. From Rs 22,205.1 crore in the same quarter last fiscal year to Rs 22,318.8 crore in Q3 FY25, revenue from operations increased by 0.51%. The operating margin for IT services was 17.5% during the quarter.
According to MOFSL, the US BFSI and healthcare verticals had especially robust growth, which was fueled by a slow rebound in discretionary expenditure. The company said that its transaction pipeline has been significantly reinforced, particularly in the Americas, by concentrating on client mining and growing its consultancy business.
But there are still issues in some regions and sectors. Due to regional slowness, especially in Europe and APMEA, its 4Q outlook is modest (-1 to 1% in CC). It suggested a ‘Neutral’ and a target price of Rs 290 for the company, stating that the manufacturing and E&U sectors are still facing client-specific challenges and that no rapid indications of recovery are anticipated.
According to Nuvama Institutional Equities, Wipro’s recent upgrade thesis—which was predicated on its favorable portfolio mix and robust margin performance—was supported by the company’s results. Due to increased margins, it has raised its FY25 and FY26 earnings projections by 2–5%. The firm kept its target price of Rs 350 for the Wipro shares at “Buy.”
Date of Wipro Dividend Record
January 28 has been set as the record date by the Wipro board. To decide which shareholders are entitled to receive the announced dividend, companies utilize the record date.
You will be eligible for the dividend payment if you owned the company’s shares on or before the record date. The dividend will not be paid to shareholders who buy shares after this date.
Date of Payment for the 2025 Wipro Dividend
On the date of payment, Wipro’s board stated, “The interim dividend payment will be made on or before February 15, 2025.”
The day when a business actually disburses the dividend to qualified shareholders is known as the payment date. The corporation uses direct bank transfers to distribute the dividend amount to shareholders on this day.
Disclaimer: The information in the aforementioned article is news and educational in nature; it is not a suggestion for a purchase or sale. Before making any financial decisions, users are advised by TraderPulse to consult with qualified professionals.
