Wipro share price zoomed in early trade today after the IT firm reported a marginal rise in consolidated profit to Rs 2,390.4 crore in Q1 of current fiscal. In corresponding quarter of previous fiscal, the IT firm reported a consolidated profit of Rs 2,387.6 crore. Share price of Wipro opened 5.31% higher at Rs 237 compared to the previous close of Rs 225.05 on BSE.
Later, the large cap stock gained 17.71% intra day to Rs 264.9 on BSE. Wipro is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The stock has gained 0.02% in the last one year and risen 5.67% since the beginning of this year.
The stock has risen 21.59% in one month and 16.55% in a week. Total 30.27 lakh shares of the firm changed hands amounting to turnover of Rs 77.58 crore.
The share hit its 52-week high of Rs 276 on August 1, 2019 and 52-week low of Rs 159.60 on March 19 this year.
At 11:00 am, the share was trading 15% or Rs 35 higher at Rs 259.60 on BSE. On the quarter-on-quarter basis, net profit rose 2.8 per cent from Rs 2,326 crore in March quarter of FY20.
Total income of Wipro was almost flat at Rs 15,571.4 crore in the April-June quarter compared to Rs 15,566.6 crore in the same quarter of the last financial year.
The consolidated income from operation of the company increased by 1.3 per cent to Rs 14,913.1 crore during the reported quarter from Rs 14,716.1 crore in the corresponding quarter of 2019-20.
Here's what brokerages said on the IT firm's results.
Jyoti Roy, DVP- Equity Strategist, Angel Broking said, "While the Q1FY21 revenues were in line with street estimates, margins and profits came in well above street estimates due to cost control by the company. Markets will also look forward to management commentary and their outlook for the rest of the year given likely budget cuts by clients."
Macquarie expects more clarity on new CEO's strategy in next 3 months. While worst is likely behind, a recovery is likely to be gradual as uncertainty persists in certain verticals, the brokerage said.
It raised FY21-22 EPS estimates by 2.6-7% and gave a neutral call on the stock with a target price of Rs 210.
CITI upgraded its stance to buy with a target price of Rs 260 from the earlier Rs 230. The company is managing costs well and delivering solid cash flows even as it continues to lag peers on growth, the brokerage said.
Some part of these cost benefits will stay in the medium term and result in 3-6% EPS upgrades in FY21-23E, it added.
CLSA said good cost control & stable outlook helped Wipro in Q1 but sustainability is key for the IT firm.
The management commentary on the firm's near-term outlook was optimistic. However, sustaining medium-term momentum could be a challenge, it said. The firm gave a target price of Rs 215 for the stock.