Wipro Ltd shares tanked 4 per cent in Friday's trade after posted weaker-than-expected Q4 IT services revenue on client-specific issues and delays in ramp-ups in BFSI. A soft guidance for June quarter and fears of a likely margin pressure going ahead dragged the stock lower. 

The stock, however, recovered some ground, thanks to Rs 15,000 crore share buyback announced by the IT major at Rs 250 per share, implying a premium of 19 per cent from the prevailing share price. Wipro intends to buyback a potential 60 crore shares via tender offer. Brokerages such as Antique Stock Broking and Jefferies said the share buyback is in line with expectations and is likely to be completed by the end of Q1. A few analyst believe the buyback will support stock sentiment in the near-term. 

On Friday, Wipro shares were trading 2.56 per cent lower at Rs 204.88 apiece by 10.25 am. 

YES Securities said the Rs 15,000 crore buyback may improve shareholder returns and near-term sentiment. It suggested a target price of Rs 271 on the stock, implying 28.9 per cent upside over Thursday's closing price. 

In FY26, Wipro paid a dividend of Rs 11 per share, with a payout ratio to 88 per cent. 

HDFC Institutional Equities said demand remained stable in Cloud, Data, and AI amid client focus on cost optimization and vendor consolidation, but discretionary spending lags due to geopolitical and macro uncertainty. "The record Rs 15,000 crore buyback at Rs  250 per share offers some relief," it said while suggesting a target of Rs 215 on the stock. 

ICICI Securities said adjustments for the buyback and currency depreciation have offset the cut in revenue and other income estimates, leading to 2 per cent EPS change for FY27E and FY28E. It maintained 'Hold' on Wipro with a target price of Rs 200; It sees downside risk to valuation multiples if revenue growth trajectory does not recover by September quarter. 

Nuvama Institutional Equities said Wipro is likely to start FY27 on a soft note. However, the margin remains solid and valuation highly attractive at 15 times FY27 PE. It retained ‘Buy’, as inexpensive valuation and sizeable buyback make it attractive at current levels.

Wipro has delivered a disappointing revenue and total contract value (TCV), reducing forward visibility as caution persists, driven by lower ACVs due to longer deal durations, low discretionary spending, and macro uncertainty, said Nirmal Bang Institutional Equities. 

"Negative 1Q guidance despite 1.5 months of contribution from the 2 new deals implies weakness in core revenue. We maintain our ‘HOLD’ rating on Wipro with an unchanged target of Rs 204, valuing the company at 13x Mar-28E EPS.

Antique Stock Broking said Wipro posted weaker-than-expected Q4 IT services revenue of $2,651 million, reflecting 0.2 per cent QoQ growth in constant currency (CC) terms and coming in below its estimate, with a 1.5 per cent contribution from the Harman Digital acquisition. 

The Wipro management expects client-specific issues in BFSI to continue into Q1, leading to IT Services revenue growth guidance of 2 per cent to nil in CC terms, with  organic degrowth guidance of 2.8 per cent to 0.8 per cent, below Antique's organic expectation of minus 1 per cent to  1 per cent.

"Wipro’s 4Q came in below expectations, with subdued revenue growth and lower than-expected guidance for 1QFY27. The near-term outlook remains cautious due to account-specific headwinds and a measured demand environment. That said, steady deal momentum and unchanged client behavior despite geopolitical uncertainties should support a recovery over the medium term," it said.

Antique Stock Broking cut its target on Wipro to Rs 225 from Rs 230. its valuation multiple for Wipro implies a 10–15 per cent discount to its larger peers HCL Technologies and Infosys. 

Wipro has guided for a minus 2 per cent to nil sequential constant currency (CC) revenue growth for the June quarter. The management cited account-specific issues in Americas region and delays in large deal ramp-up for this weakness. "Wipro's total bookings in 4Q declined by 11 per cent YoY CC, driven by a 20 per cent YoY decline in large deal bookings. Non-large deal bookings declined 15 per cent YoY, a reflection of continued pressures of discretionary IT spends," Jefferies said.

On share buyback, Jefferies said Wipro's buyback price is at a 19 per cent premium to CMP, broadly in line with the previous few buybacks. This is in addition to dividend payout of Rs 11 per share made over FY26. For now, Jefferies suggested a target of Rs 180 for the stock. 

MOFSL said while management expects normalisation from Q2, it said near-term visibility remains limited due to ramp-up delays and seasonality. It said the timely execution of the deals will be key to improving growth visibility. ". We believe that broad-based growth across verticals and a stable conversion of deal TCV to revenue will be key to a constructive view. We reiterate our Neutral rating on WPRO with a target of Rs 215, implying 14 times FY28 EPS," MOFSL said.

Elara suggested 'Sell' and a target of Rs 180 on Wipro. Centrum Broking suggested a target of Rs 220. It said strong cash generation continued. A large buyback and high payout underline capital allocation discipline, it said.