Wipro Shares Poised for Gap-Up Opening After Robust Q3 Results
18th Jan 2025
Wipro's Q3 FY25 Results Highlights
Wipro, the Indian IT major, reported a strong performance in the third quarter of fiscal year 2025 (Q3FY25). The company's consolidated net profit (attributable to equity holders) rose by 24.5% year-on-year to ₹3,353.8 crore, beating market estimates. Wipro's consolidated revenue from operations stood at ₹22,319 crore during the quarter, a year-on-year increase of nearly 1%. Sequentially, the growth was flat at ₹22,302 crore in Q2FY25.
Expert Analysis on Wipro's Outlook
According to Sagar Shetty, Research Analyst at StoxBox, Wipro exhibited robust financial performance in Q3FY25, continuing its growth trajectory from the previous quarter. The company delivered in-line revenue growth, countering market expectations of a potential decline. Margins remained accretive, driven by optimized levers that enabled the company to offset the impact of wage hikes. Shetty expects this margin momentum to persist, supported by Wipro's cost optimization strategies and strong execution capabilities.
Wipro's Share Price Target and Technical Outlook
Anshul Jain, Head of Research at Lakshmishree Investment and Securities, noted that despite Wipro's strong results, the stock has consistently underperformed, signaling caution for investors. Technically, any gap-up opening should be viewed as an opportunity to book profits, with resistance around ₹290. A break above ₹309 may indicate potential upside, but downside risks persist, with weekly support at ₹230. Jain advised traders to adopt a sell-on-rise strategy, while long-term investors should reassess their positions based on broader market dynamics.
The expert also warned that large-cap and mid-cap IT stocks, including Wipro, are expected to come under the bears' radar next week if former US President Donald Trump continues his protectionist policy on tariff barriers after his inauguration as the 47th President of the US.
Wipro, the Indian IT major, reported a strong performance in the third quarter of fiscal year 2025 (Q3FY25). The company's consolidated net profit (attributable to equity holders) rose by 24.5% year-on-year to ₹3,353.8 crore, beating market estimates. Wipro's consolidated revenue from operations stood at ₹22,319 crore during the quarter, a year-on-year increase of nearly 1%. Sequentially, the growth was flat at ₹22,302 crore in Q2FY25.
Expert Analysis on Wipro's Outlook
According to Sagar Shetty, Research Analyst at StoxBox, Wipro exhibited robust financial performance in Q3FY25, continuing its growth trajectory from the previous quarter. The company delivered in-line revenue growth, countering market expectations of a potential decline. Margins remained accretive, driven by optimized levers that enabled the company to offset the impact of wage hikes. Shetty expects this margin momentum to persist, supported by Wipro's cost optimization strategies and strong execution capabilities.
Wipro's Share Price Target and Technical Outlook
Anshul Jain, Head of Research at Lakshmishree Investment and Securities, noted that despite Wipro's strong results, the stock has consistently underperformed, signaling caution for investors. Technically, any gap-up opening should be viewed as an opportunity to book profits, with resistance around ₹290. A break above ₹309 may indicate potential upside, but downside risks persist, with weekly support at ₹230. Jain advised traders to adopt a sell-on-rise strategy, while long-term investors should reassess their positions based on broader market dynamics.
The expert also warned that large-cap and mid-cap IT stocks, including Wipro, are expected to come under the bears' radar next week if former US President Donald Trump continues his protectionist policy on tariff barriers after his inauguration as the 47th President of the US.