Jan 19 (Reuters) - Wipro, India's fourth-largest IT services exporter, slumped as much as nearly 10% on Monday after a lacklustre fourth‑quarter revenue forecast and muted deal wins, which lagged those of larger rivals, weighed on investor sentiment.
Wipro's stock was trading 6.7% lower at 248.75 rupees, as of 10:38 a.m. IST, and was on track for its steepest fall since July 2024. It was also the top percentage loser in the benchmark Nifty 50 and the IT index, which fell 0.8% and 0.7%, respectively.
The Bengaluru-based company expects its fourth-quarter revenue to be flat to up 2% sequentially, including contributions from acquisitions. Total deal bookings for the third quarter stood at $3.34 billion, the lowest in six quarters.
The outlook suggests slower conversion of deals into revenue and weaker growth visibility heading into fiscal 2027, compared with peers such as TCS and Infosys, potentially widening the company's valuation gap, Morgan Stanley analysts said in a note.
They downgraded Wipro's stock to "underweight" from "equal-weight" and slashed price target to 242 rupees from 270 rupees.
Wipro trades at a 12-month forward P/E of 19.7x, compared with 21.3x for TCS and 22.5x for Infosys, highlighting a valuation discount relative to its larger peers.
"Wipro is facing double whammy of not being able to sustain the revenue nor curb costs and maintain the profitability," said Gaurav Vasu, founder of market intelligence firm UnearthInsight.
"Among the top four, they have the lowest margins."
Wipro's third-quarter results sent its U.S.-listed shares down as much as 7.2% on Friday.
Softer deal bookings and delays in project ramp-ups contributed to the weaker‑than‑expected fourth-quarter growth outlook, according to Jefferies analysts.
The company's muted outlook contrasts with larger rivals TCS and Infosys, which reported steady deal wins and better‑than‑expected revenue in the seasonally weak third quarter.
Reporting by Kashish Tandon and Sai Ishwarbharath B in Bengaluru; Editing by Janane Venkatraman and Sherry Jacob-Phillips
Source: Reuters