Wipro Earnings: Divergence From Peers as Bookings Disappoint; Shares Approaching INR 450 FVE

Wipros first-quarter results took a sharp turn from its peers Tata Consultancy Services and Infosys, with bookings down by double digits and the firm missing against consensus revenue, though beating on earnings per share. The quarters results support our continued belief that narrow-moat Wipro will lag its two Indian peers in top-line growth over the next five years, while still benefiting from vendor consolidation when up against smaller competitors. We are maintaining our fair value estimate of INR 450 as we believe that discouraging bookings indicate a relatively stable state for the rest of fiscal 2025, as opposed to gradual improvements we see for peers. Shares are moving toward our fair value estimate, with the stock down roughly 12% upon results.