Wipro share buyback may hide weak FY24 outlook. Should you buy, sell or hold?

Wipro’s Rs 12,000 crore share buyback program overshadowed weak Q1 FY24 revenue guidance, leading to a 3.6% surge in its shares on Friday. Analysts opined that the stock may remain stable in the short-term due to the large buyback program but may impact payout over FY24/25E, thereby not warranting a re-look. The Q1 revenue guidance cut to 1-3% implied no growth in FY24, indicating divergence between revenue and deal intake. Several analysts lowered their price targets and EPS estimates, and expect Wipro to underperform peers in revenue growth over FY24-25E.