Wipro shares rise for sixth straight session, can they cross 52-week high?

Shares of Wipro Ltd have risen for the sixth straight session even as the broader market was witnessing correction today. Wipro stock rose 0.91% to Rs 320.95 on BSE today. Market cap of the firm stood at Rs 3.33 lakh crore. Total 3.17 lakh shares of the firm changed hands amounting to a turnover of Rs 10.09 crore on BSE. Wipro stock hit a 52 week high of Rs 324 on January 23, 2025 and fell to a 52 week low of Rs 208.40 on June 4, 2024. 
 
The Wipro stock has gained 30% in a year and gained 57% in two years. Wipro shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages. 

Elara Securities has a price target of Rs 250 on the stock. 

“Margin performance continued to improve, led by higher offshoring and more fixed-price contracts. This performance may continue in the coming quarters. Deal wins were steady but continued to be lower than the peak achieved a few quarters’ ago – Improvement here would help revive confidence as regards growth,” said  Elara. 

Valuations are not comforting given the recent run-up in the stock price, Elara said. 

JM Financial said stable margins should also allow Wipro to invest in growth as demand turns. It has a price target of Rs 360 on the stock. 

“We were already building 17.5 per cent margins for FY27, limiting incremental uplift. But we see higher upgrade to Street’s conservative estimates. Our FY27E EPS is now c.15 per cent above consensus. We continue to value the stock at 24 times 24-month forward EPS to arrive at our revised target of Rs 360. Recent correction in larger peers has narrowed the valuation gap, capping re-rating potential,” JM Financial said. 

Global brokerage Morgan Stanley has an ‘underweight’ rating and a price target of Rs 250 per share on the IT stock. 

The global brokerage said after the company’s acquisition of Capco in 2021 and then Rizing’s acquisition in 2022, it sees the latest target entity – Applied Value Technologies as relatively smaller.

The brokerage stated that the said acquisition will offer more of a capability boost to the Bengaluru-based IT major and also add some marquee clients to its portfolio given the small scale. Additionally, Morgan Stanley expects the acquisition to have a limited impact on the company’s (Wipro) financials in FY25/FY26 owing to the small-scale of the acquired entity.

Kushal Gandhi, Technical Analyst, StoxBox has a price target of Rs 367 on the IT stock. 

“The share price of Wipro is exhibiting characteristics of a true market leader as it showcases a positive divergence compared to both the sectoral index Nifty IT and the benchmark index Nifty50 in the intermediate trend—a sign of favorable development. Moreover, the stock is currently positioned in the early stage 2 of the stock cycle, which tends to be dynamic and indicates the beginning of an advancing uptrend phase. From a price action perspective, since the lows in April 2023, Wipro’s price movements have demonstrated successive rally peaks relative to previous highs, while the lows during corrections have also been progressively higher, albeit with decreasing intensity. This trend highlights the strengthening buyer demand, which is a very encouraging sign,” said Gandhi. 

“Wipro’s EPS strength and price performance compared to its performance over the past 12 months are also on an upward trajectory. Additionally, from a technical analysis standpoint, the RSI across daily and higher timeframes is currently trading above median levels without showing any divergence from price, indicating a solid bullish momentum. As buyers and sellers work towards achieving equilibrium near a minor resistance zone between Rs 324 and Rs 320, we recommend purchasing the stock at the current market price, with partial purchases upon confirmation of a breakout. The target price is set at Rs 367, with a stop loss near Rs 299, ensuring a favorable risk-to-reward ratio,” added Gandhi. 

BNP Paribas has a bearish stance on the stock with a price target of Rs 232.5. 

Brokerage Investec has reiterated its sell call with a target of Rs 290. It expects an improved capital allocation strategy and enhanced shareholder payouts from the company. Considering that Wipro holds a significant cash reserve of $6.1 billion, Investec believes that the company’s new capital allocation policy is likely to align with industry peers. 

 Global brokerage CLSA has downgraded shares of technology services provider to “hold” from its earlier rating of “outperform”. The brokerage has maintained its price target at Rs 303. 

CLSA expects Wipro to remain a laggard in quarter that ended on December 31, as it expects its Constant Currency growth to remain flat on a sequential basis. In 2024, Wipro saw earnings downgrades of 1% & P/E rerate from 19.7X to 24.4X, said CLSA adding that the next leg of rerating for Wipro can only be achieved if it starts growing in-line with peers. However, the signs of that currently remain elusive.