Why Is MOSL Cautious on Wipro Despite Steady Deal Momentum?
MOSL (Motilal Oswal) has maintained a Sell recommendation on Wipro with a target price of ₹200 following the company’s Q2FY26 performance. While the IT major continues to win steady deals in key verticals like BFSI and healthcare, overall revenue acceleration remains below expectations.
The brokerage acknowledged that Wipro’s deal momentum was consistent with management commentary, yet revenue growth continues to lag peers. Despite a diversified portfolio, weak discretionary spending and project delays in certain geographies have restricted sequential improvement.
Investors monitoring large-cap IT stocks may find near-term volatility around earnings season. For guidance on how to navigate such setups with defined risk-reward levels, check our Stock Tip designed for positional strategies across frontline tech counters.
MOSL’s note highlights that while the company’s cost discipline and improved utilization levels support margin stability, the lack of visible growth triggers may weigh on sentiment. The brokerage expects a muted topline in H2FY26 as client budgets remain conservative amid global macro uncertainty.
Management has reiterated its commitment to enhancing profitability through a sharper focus on automation, simplification, and client mining. However, MOSL believes that margin expansion will likely remain range-bound unless revenue visibility improves in key verticals.
The report added that despite a healthy pipeline, the conversion pace has slowed compared to industry peers like Infosys and TCS. Investors may therefore expect near-term underperformance relative to sector leaders who are better positioned in large digital transformation programs.
For active traders looking to play quick directional moves on earnings days, aligning setups with volatility indicators can offer tactical opportunities. Follow our Stock Intraday Tip for precision-timed entries in IT sector names like Wipro and Infosys.
MOSL maintains a cautious stance until Wipro demonstrates consistent revenue acceleration and improved large-deal execution. Investors are advised to monitor commentary on the demand environment and headcount rationalization in upcoming quarters.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, highlights that Wipro’s challenge lies not in its deal pipeline but in converting wins into sustained growth. Long-term investors should await stronger execution metrics before re-entering the stock. Read more detailed insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries
- Why Is Wipro’s Growth Lagging Behind Other IT Majors?
- Can Wipro’s Cost Control Measures Boost Margins in FY26?
- What Are the Key Triggers for Re-Rating Wipro Stock?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
