April 26, 2018 / 4:18 AM / 6 months ago

BUZZ-India's Wipro falls most in 7 months; guidance disappoints

** Wipro shares fall as much as 4.6 pct in biggest daily pct loss since Sept 14, 2017

** Software services exporter’s Q4 profit fell 20 pct to 18.03 bln rupees ($269.5 mln), missing analysts estimates

** Co sees weak growth in revenue during current quarter after two clients went bankrupt and it lost business in the U.S.

** June-qtr revenue from IT services business expected in range of $2.02 bln-$2.07 bln in June qtr

** Nomura cuts PT to 260 rupees from 270 rupees with ‘reduce’ rating

** Nomura says Wipro likely to underperform peers given weaker presence in developed markets and key verticals

** Morgan Stanley says with most operational parameters running at high levels, unsure of margin levers in FY19 other than rupee depreciation; revenue guidance a negative surprise

** Kotak Institutional Equities says “perpetual cycle of hope and disappointment continues”; expects low single-digit growth in FY2019

** Twenty one of 42 brokerages rate Wipro stock “sell” or lower, seven “buy” or higher, 14 “hold”; median PT is 290 rupees

** Stock has fallen 8.6 pct this year up to Wednesday, compared with a 19 pct increase in the Nifty IT index

** Wipro’s results bucking the trend from bigger rivals Tata Consultancy Services and Infosys Ltd; both posted a rise in Q4 profit ($1 = 66.9100 Indian rupees)

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