{"id":10471,"date":"2024-02-28T12:22:43","date_gmt":"2024-02-28T06:52:43","guid":{"rendered":"https:\/\/bigbreakingwire.in\/?p=10471"},"modified":"2024-02-28T12:26:31","modified_gmt":"2024-02-28T06:56:31","slug":"wipro-faces-downgrade-to-sell-by-kotak-institutional-equities-with-revised-target-price-of-rs-440-signaling-a-potential-16-downside","status":"publish","type":"post","link":"https:\/\/bigbreakingwire.in\/wipro-faces-downgrade-to-sell-by-kotak-institutional-equities-with-revised-target-price-of-rs-440-signaling-a-potential-16-downside\/","title":{"rendered":"Wipro Faces Downgrade to &#8216;Sell&#8217; by Kotak Institutional Equities With Revised Target Price of Rs 440, Signaling a Potential 16% Downside"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>\n<p>Kotak Institutional Equities has downgraded Wipro Ltd. to &#8216;sell,&#8217; citing significant underperformance compared to peers in recent years. Wipro&#8217;s growth has lagged behind, and the stock is trading at a substantial multiple of 21 times the earnings-per-share estimates for fiscal year 2026, which the brokerage deems unattractive.<br><br>The target price has been revised downward from Rs 430 to Rs 440, indicating a potential downside of 16% from the current price. The underperformance trend has persisted during the current CEO&#8217;s tenure, with brief improvements in fiscal years 2021 and 2022 offset by declines in subsequent years.<br><br>Kotak Institutional Equities highlights various challenges faced by Wipro, both internal and external. Elevated attrition in key management personnel is viewed as a concerning sign, particularly in the later stages of turnaround efforts. Mega deal announcements have been subdued, and the company&#8217;s significant exposure to the consulting portfolio, which previously worked against it, may only provide limited benefits in the case of a recovery.<br><br>The brokerage suggests that Wipro is vulnerable to share losses in vendor consolidation events on a net basis. It anticipates a modest 3.6% compound annual growth rate in dollar revenue for fiscal years 2024\u201326. In summary, Kotak Institutional Equities paints a cautious outlook for Wipro, emphasizing the unattractive risk-reward profile and the multitude of challenges that could impede the company&#8217;s growth prospects.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kotak Institutional Equities has downgraded Wipro Ltd. to &#8216;sell,&#8217; citing significant underperformance compared to peers in recent years. Wipro&#8217;s growth has lagged behind, and the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":10475,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[618,619],"tags":[1594,1592,1576,1577,1593,582],"class_list":["post-10471","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-brokerage-reports","category-stocks-in-news","tag-downward-revision","tag-kotak-institutional-equities","tag-sell-rating","tag-target-price","tag-underperformance","tag-wipro","entry","rows"],"jetpack_publicize_connections":[],"modified_by":null,"jetpack_featured_media_url":"https:\/\/bigbreakingwire.in\/wp-content\/uploads\/2024\/02\/Wipro_Primary_Logo_Color_RGB.svg_.png","jetpack_shortlink":"https:\/\/wp.me\/pfgCxS-2IT","jetpack_sharing_enabled":true,"jetpack_likes_enabled":false,"_links":{"self":[{"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/posts\/10471","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/comments?post=10471"}],"version-history":[{"count":0,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/posts\/10471\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/media\/10475"}],"wp:attachment":[{"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/media?parent=10471"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/categories?post=10471"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bigbreakingwire.in\/wp-json\/wp\/v2\/tags?post=10471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}