Shares of Wipro Ltd plunged further than 6 to hit a 52- week low of ₹ 383 all on the BSE in Thursday’s early trading session after the IT services major reported an over 9 drop in its September quarter net profit to ₹,659 crore, counted down by rising staff charges and lowernon-US earnings.

The Bengaluru- grounded company’s profit from operations stood at ₹,539 crore, up14.6 growth over ₹,667 crore in the former time. Wipro in its outlook for the December quarter said it expects profit from our IT services business to be in the range of$,811 million to$,853 million. This translates to a successional growth of0.5 to 2.

We lower our FY23/ FY24 EPS estimate by6/2 to factor in a miss on growth and elevated threat. We maintain our Neutral station as we view the current valuation as fair,” said domestic brokerage and exploration establishment Motilal Oswal in a note.

The brokerage maintained its Neutral station on Wipro shares with a target price of ₹ 380 as it awaits farther substantiation of the prosecution of Wipro’s refreshed strategy, and a successful reversal from its growth struggles over the last decade before turning further formative on the IT stock.

Wipro reported a modest Q2 performance. The profit growth and perimeters were both soft, but astronomically in line with prospects. Q3 profit growth guidance was disappointing. EBIT perimeters of 15 in H1, with two months of pay envelope hike impact yet to come( in Q3), means the company won’t be suitable to report perimeters much above its declared bottom of 15,” said PhillipCapital

Over the last eight diggings, Wipro’s perimeters have fallen by over 600 bps, primarily due to accessions like Capco and Rizing, which have led to a big reset at gross periphery situations.

These accessions have also consumed significant cash – ruling out any buyback in near future. All that has not led to any significant outperformance on the growth front – as Wipro appears likely to report, below assiduity average growth in FY23, it stressed.

Overall, we don’t see any detector in Wipro stock, that might lead to its rerating, after the sharp correction( CYTD,-43). Affordable valuations and high tip yield limit the strike eventuality of the stock,” the note stated. The brokerage has maintained its Neutral standing on the stock with a target price of ₹ 390.