Wipro in focus after Kotak Securities downgrades the stock.
Kotak has downgraded Wipro to a ‘Reduce’ rating from an ‘Add’ rating and the reason is the steep run-up in the stock price.
The stock has gone up 29 percent in the last three months and because of that, it trades at a premium to Infosys and only at a marginal discount to Tata Consultancy Services (TCS).
Wipro is a turnaround story which is why analysts and investors are betting on Wipro. But according to Kotak, even turnaround stories require some safety in multiples, and now Wipro is looking very expensive at 23 .50 times FY23 EPS. So, this is one year forward PE multiples.
Watch the accompanying video of CNBC-TV18’s Reema Tendulkar for more details.