Shares of Wipro soared over 5 percent in early trade on June 6 after the information technology major bagged a $500-million deal by a leading US communication service provider, spread over five years.
At 09.57 am, shares of Wipro were trading at Rs 483 on the NSE.
However, brokerages continued to remain skeptical of the IT services player despite seeing the order win in a positive light.
The mega-deal could be taken positively in a tight discretionary spending environment, said international brokerage Morgan Stanley. However, Wipro's near-term growth could lag peers and until the growth gap narrows, the P/E multiple gap could remain wide as well.
As a result, Morgan Stanley kept its underweight call on Wipro steady, with a share price target of Rs 421 apiece. This indicates a downside of around nine percent from the previous close.
Investec believes that the deal win will aid 1 percent growth to the FY25 revenue and that revenue accretion is likely in H2FY25. However, the brokerage maintained its sell call on Wipro, with a target price of Rs 460 per share.
The deal assumes significance as it is the first big deal that Wipro has won under its new chief executive officer Srinivas Pallia. The 32-year Wipro veteran assumed charge on April 6, after his predecessor Thierry Delaporte stepped down.
This is the second multi-million dollar deal announced since March 2024.
In April, the Bengaluru-based company said it had signed a multi-million-dollar agreement with telecommunications major Nokia, without disclosing the amount. The deal involved overhauling Nokia's employee service desk and providing seamless, real-time IT support to a global network of employees.
Over the past year, Wipro shares have risen around 15 percent in trade. In comparison, the benchmark Nifty 50 has gained around 22 percent during the same period.
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