Stock Price & Analysis

Based on the provided data, let me analyze WIT stock:

Technical Analysis

The stock is currently trading at $3.75, showing a relatively weak technical position with RSI at 42.98 indicating neutral momentum but leaning towards oversold territory. The stock is trading above its 20-day moving average of $3.53, suggesting some short-term strength.

Recent Performance

• Regular market change: +0.80%
• Post-market change: -0.53%
• Current price is between Fibonacci resistance R1 ($3.73) and R2 ($3.85)

Fundamental Catalysts Recent news highlights two significant developments:

• Strong Q3 Performance: WIT surged about 8% after better-than-expected third-quarter revenue and profit, particularly showing strength in banking, financial services, and insurance (BFSI) segment
• Revival in Demand: CEO indicated discretionary spending is slowly returning after facing macroeconomic challenges in 2024

Business Outlook

• Trump's potential presidency could benefit India's IT sector according to Wipro's Executive Chairman
• Positive factors include potential corporate tax cuts and reduced regulations
• However, concerns exist regarding H-1B visa restrictions and outsourcing policies

Financial Performance

• Q3 gross revenue: $2.61 billion (+0.5% YoY)
• IT Services revenue: $2.63 billion (-1.0% YoY)
• Net income: $392 million (+24.5% YoY)
• Operating margin reached 12-quarter high at 17.5%
• Total bookings: $3.51 billion with large deals worth $961 million

Q4 Guidance The company expects IT Services revenue between $2.602-$2.655 billion, indicating -1.0% to +1.0% sequential growth in constant currency terms.

Based on the technical and fundamental analysis, WIT shows mixed signals. While recent earnings were strong and margins are improving, the stock's technical indicators suggest caution. The potential impact of U.S. political changes adds uncertainty. At current levels, it would be prudent to HOLD the stock and wait for clearer technical strength before initiating new positions.

Based on the recent data and market trends, here's the price prediction for WIT stock in 2025:

Wipro's stock is expected to reach $4.20-4.50 by end of 2025, representing a potential upside of 12-20% from current levels ($3.75), driven by improving IT services demand and margin expansion. The company's recent Q3 performance showed strong signs of recovery with IT Services margins hitting a 12-quarter high of 17.5% and large deal bookings worth $961 million.

The positive outlook is supported by three key factors:

1. Revival in discretionary spending, particularly in the banking and financial services segment which accounts for about one-third of revenue

2. Strong deal pipeline with total bookings of $3.51 billion and improving win rates

3. Margin expansion potential through operational efficiency and higher-value digital services

The S1 support level for WIT Stock is $3.34 ,The R1 resistant level for WIT Stock is $3.73.

As of the end of day on 2025-01-24, the price of WIT Stock was $3.75.

The target price for WIT Stock according to analyst rating is 2.98, with the highest price target at 4.00 and the lowest at 1.55. Analysts have a Hold rating on WIT Stock overall.

The market cap of WIT is $39.4B.

Based on the provided data, here's a comprehensive analysis of WIT's valuation:

Valuation Analysis WIT appears to be overvalued based on multiple key metrics:

• P/E ratio of 25.04 (Q3 2025) is significantly higher than historical levels
• EV/EBITDA of 15.33 shows premium valuation compared to industry standards
• P/S ratio of 3.50 indicates expensive pricing relative to revenue generation
• P/B ratio of 3.71 suggests the stock trades at a premium to book value

Financial Performance Recent financial metrics show mixed signals:

• Revenue remains relatively flat at $2.64B in Q3 2025
• Net margin improved to 15.08% in Q3 2025 from 12.87% in Q4 2024
• Operating margins reached a 12-quarter high at 17.5%
• Current ratio of 2.83 indicates strong liquidity position

Market Sentiment Recent analyst actions suggest cautious optimism:

• UBS upgraded from Strong Sell to Hold on January 2, 2025
• Wedbush maintains Sell rating with price target of $6 (January 16, 2025)

Conclusion WIT is currently overvalued considering:

1. Premium valuation metrics across all key ratios
2. Flat revenue growth despite margin improvements
3. Mixed analyst sentiment with recent ratings ranging from Hold to Sell
4. Challenging industry environment with ongoing macroeconomic uncertainties

The stock appears overvalued at current levels and may face downward pressure until fundamentals catch up with valuation.

Wipro Limited is a technology services and consulting company. The Company operates through two segments: Information Technology (IT) Services, and IT Products. IT Services segment provides a range of IT and IT enabled services which include digital strategy advisory, customer centric design, technology consulting, IT consulting, custom application design, re-engineering and maintenance, systems integration, package implementation, cloud and infrastructure services, business process services, cloud, mobility and analytics services, research and development and hardware and software design. The IT Products segment provides a range of third-party IT products, which allows it to offer IT system integration services. These products include computing, platforms and storage, networking solutions, and software products. Its services include Applications, Artificial Intelligence, Business Process, Cloud, Consulting, Data & Analytics, Digital Experiences, Engineering, and Sustainability.

Based on the provided data and market analysis, here is the price prediction for WIT stock by 2030:

Wipro (WIT) stock is projected to reach $7.50-8.00 by 2030, driven by the company's strategic focus on AI services and digital transformation. The recent positive performance in Q3 2024, with 24.5% profit growth and improved IT Services margins reaching a 12-quarter high of 17.5%, demonstrates strong execution. Additionally, the company's growing commercial customer base, which expanded from 14 to 300 U.S. clients in recent years, indicates robust market penetration.

The stock's growth trajectory is further supported by Wipro's positioning in the AI market and potential benefits from Trump's pro-business policies that could stimulate tech spending. The company's focus on discretionary spending in the BFSI segment, which showed 11% year-over-year growth, suggests sustained momentum in key revenue streams.

WIT has a total of 234000 employees.