Wipro Share Price: Should you buy the stock after Q4 results and Rs 15,000 crore buyback?

Wipro share price: Shares of Wipro are set to remain in focus on Friday after the company reported a mixed set of March quarter results and announced a large buyback.

In an exchange filing, the company said its net profit for the January–March quarter stood at Rs 3,502 crore. This was down around 2 per cent from Rs 3,570 crore in the year-ago period. However, profit rose 12 per cent sequentially from Rs 3,119 crore in the December quarter.

Revenue from operations came in at Rs 24,236 crore, up 8 per cent year-on-year from Rs 22,504 crore, as per the filing. Growth remained below expectations, reflecting continued demand pressure in key verticals.

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Brokerages largely described the quarter as “mixed” with revenue missing estimates but margins holding up better than expected.

Buyback announced at 19 per cent premium

Alongside results, Wipro’s board approved a Rs 15,000 crore share buyback, its largest ever.

According to the exchange filing, the company will buy back shares at Rs 250 per share. This is a premium of about 19 per cent over the previous closing price of around Rs 210 on NSE.

The buyback will be for up to 60 crore equity shares with a face value of Rs 2 each.

Brokerages said the buyback reflects strong capital allocation and could provide near-term support to the stock, especially in a weak growth environment.

Brokerages remain divided, growth outlook key concern

Global brokerages maintained a cautious stance, highlighting weak growth visibility and soft guidance.

Morgan Stanley said “volatile macro and company-specific challenges” could keep growth below peers. It maintained an Underweight rating and cut the target to Rs 192.
Goldman Sachs maintained a Sell rating with a target of Rs 187, citing weak organic growth outlook.
Citi also flagged “disappointing guidance” and cut earnings estimates slightly, maintaining a Sell stance.
Jefferies said the quarter was “below estimates” with limited growth visibility, maintaining an Underperform rating with a target of Rs 180.
Bank of America highlighted customer-specific issues and weak Q1 guidance, though it noted the buyback could support the stock in the near term.

Some brokerages were relatively constructive:

Nomura said deal wins remain steady and margins are likely to stay in a tight band. It maintained a Buy rating and raised the target price to Rs 250.
CLSA said the quarter had “more negatives than positives”, citing revenue miss, delayed deal ramp-ups, and weak BFSI momentum, but noted stable margins and the buyback as positives.

Margins stable, but execution risks remain

Several analysts pointed out that margins remained resilient, supported partly by one-offs and cost actions. However, revenue growth continues to lag peers.