NEW DELHI: Shares of Wipro slipped over 2 per cent in morning trade on Monday as company lowered margin guidance for its IT services business in range of $2,047 million to $2,088 million for March quarter, which translates into a flat 2 per cent sequential growth.
Citi has advised that one should adopt a 's ell into strength' approach on stock.
The firm has retained sell rating but increased target price to Rs 325 from Rs 315.
Growth continues to lag peers; BFSI growth key to watch out for.
Stock may get near term boost due to reported margins Sell into strength, said Citi.CLSA has also retained sell rating given lack of convincing acceleration in growth.
While there has been some improvement in BFSI (banking and financial services), growth appears concentrated and needs consistency.
Soft 4Q (January-March) guidance implies just a 2 per cent exit rate when industry growth is accelerating, said CLSA.
The IT services company on Friday posted a strong 31.8 per cent year-on-year jump in consolidated net profit at Rs 2,544.5 crore for October-December 2018, and announced a 1:3 bonus share offer.
The scrip was trading 2.20 per cent down at Rs 338.60 at around 10.07 am, while benchmark BSE Sensex was up 0.70 per cent at 36,641.54.
Meanwhile, shares of Wipro opened at Rs 342 on BSE against its previous closing of Rs 346.20.