Wipro hits four-month lows on weak Q1 guidance

The stock has tanked 10% in the past two trading sessions after the company's revenue guidance came in below estimates.

Wipro is trading lower by 3.5% to Rs 527, extending its previous day’s 7% decline, after the company's revenue guidance for the first quarter of current fiscal came in below estimates.

The stock opened at Rs 548 and touched a low of Rs 527, its lowest level since December 2013, on the BSE. A combined 3.9 million shares changed hands on the counter so far on the BSE and NSE.

For Q1FY2015, the management has given a dollar revenue guidance of $ 1,715 million-1,755 million, which translates into a revenue growth range of -0.5 -2% as against expectations of 1.5-3.0%.

"While the Q4 FY'14 numbers came in well ahead of expectations, the revenue growth outlook for the next year disappointed. Wipro may face some bit of selling pressure post results in the near term," Angel Broking said in a report.

Wipro has recovered strongly from lower levels after posting better-than-expected results in the last two quarters, but we believe it will still lag other larger peers such as TCS and HCL Tech in terms of revenue growth rates in FY2015, said the analyst.