Citi has maintained a ‘sell’ rating on Wipro and cut the target price to Rs 215 from Rs 240. Wipro’s Q1 guidance is well below expectations, with management commentary indicating that tariffs have created a lot of uncertainties for clients, according to the brokerage.
Multiple segments, including manufacturing, consumer, BFS, and Europe, are impacted, it noted.
In the fourth quarter, Wipro saw decent trends in total contract value, although the link between TCV and growth has been limited across the sector, according to the brokerage.
Cash conversion remained strong, with operating cash flow to Ebitda at around 93% on a trailing 12-month basis.
Citi recently reduced its growth estimates before the fourth quarter, and since then, macroeconomic uncertainty has increased, it noted.
Comments from TCS and Wipro indicate a challenging outlook for the first half of fiscal 2026, which is usually the better part of the year for the industry. Discretionary spending is likely to be affected, Citi said.
