Wipro shares gain 1% in early trade. What investors need to know

Wipro shares rose over 1% in early trading on Monday, continuing their positive momentum following the company’s Q2 FY25 earnings report last week. By 11:20 AM, Wipro shares were trading 0.87% higher at Rs 553.50 on the Bombay Stock Exchange (BSE).
The stock’s rise comes after Wipro posted better-than-expected Q2 results, including a 21.3% year-on-year (YoY) increase in net profit to Rs 3,209 crore and the announcement of a 1:1 bonus issue.
Despite the broader Nifty IT index trading lower, Wipro shares continued to gain, following a 4% jump in the previous session, where they hit an intra-day high of Rs 550.55.
Wipro’s Q2 performance surprised many, with the company securing large deals and its total contract value (TCV) rising by 8% quarter-on-quarter (QoQ). However, for Q3, the company expects revenue growth to range between -2% and 0%, citing seasonality and holiday-related furloughs.
Analysts remain divided on Wipro’s outlook. Nomura expects a 2.1% YoY decline in USD revenue for FY25, followed by a 5.2% rebound in FY26. The brokerage sees long-term margin improvements, forecasting EBIT margins to rise to 16.5% in FY25, and maintained a target price of Rs 670.
On the other hand, Jefferies remains cautious with an underperform rating and a target price of Rs 465, citing broad-based revenue pressure and disappointing Q3 guidance. Citi has a sell rating with a target of Rs 500, noting weak forward indicators such as a 4.4% YoY decline in headcount and an 11% drop in trailing twelve months TCV.
Domestic brokerage Motilal Oswal raised its FY25 EPS estimate for Wipro by 2% due to its margin beat, but maintained a neutral rating and a target price of Rs 500.
Additionally, Wipro’s announcement of a 1:1 bonus issue has further boosted investor interest, although the record date for the bonus has yet to be announced.