Wipro shares fell as much as 8 percent on July 22 after the company delivered a weak Q1 FY25 performance, with a 1 percent quarter-on-quarter (QoQ) decline in its consolidated revenue. This is particularly concerning when compared to its competitors, TCS and Infosys, which reported 2-3 percent QoQ growth.

Wipro's Q1 FY25 revenue and guidance for Q2 FY25 fell below expectations.

The company's consolidated revenue declined by 1.1 percent on quarter to Rs 21,963.8 crore, falling short of Moneycontrol's forecast of Rs 22,229 crore. Bengaluru-based Wipro also revised its revenue guidance for the Q2 FY25, suggesting a potential sequential decline of 1 percent or a slight growth of up to 1 percent (in constant currency terms).

However, brokerages noted that the early recovery in discretionary demand could potentially boost Wipro's future performance.

Nuvama said that Wipro has a long way to go in order to reach industry average growth. While the brokerage expects Wipro to continue underperforming its peers, it also notes that its low valuation and high dividend yield help mitigate downside risk. Nuvama has maintained its 'Hold' rating on Wipro. The brokerage increased the target price for the stock to Rs 530 Rs 460 as the BFSI segment continued to grow and consumer business also picked up.