Wipro‘s share price rocketed on Monday morning to hit a new 52-week high of ₹511.95 as the investors seemed impressed by the company’s December quarter earnings.

What Happened: The IT services giant, reported a 12% year-on-year decline in net profit for the third quarter of the current financial year, reaching ₹2,694 crore. This is the fourth consecutive quarter in which the company has reported a fall in profits. The reported profit was in line with consensus estimates of ₹2,700 crore.

The consolidated revenue for the quarter stood at ₹22,205 crore, marking a 4.4% YoY decrease, which is below street estimates of around ₹22,500 crore.

Wipro also adjusted its revenue growth guidance for the fourth quarter, providing a range of -1.5% to 0.5%. This revision follows the company’s previous guidance reduction to -3.5% to -1.5% in the last quarter.

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The company has declared an interim dividend of ₹1 per share. The record date for the dividend payment is Jan. 24 and it will be paid on or before Feb. 10.

Analyst Reactions: Unlike its bigger peers, analysts were not impressed by Wipro’s performance in the December quarter. BofA maintained its underperform rating on the stock with a target price of ₹395. The analysts said that revenue decline continued in Q3 but expect some improvement in the March quarter.

Jefferies also maintained its “underperform” rating on the stock but raised the price target to ₹470 from ₹385. The research firm said that while Q3 results beat its estimates, the weak revenue guidance for Q4 and declining headcount are signs of worry.

Nomura maintained its “reduce” call on the IT company with a price target of ₹410. The brokerage said that soft deal wins and weak guidance are not inspiring confidence. Analysts also forecast that margin recovery is unlikely in the next quarter.

Morgan Stanley also maintained its “underweight” rating for the stock with a target price of ₹460. The analysts said that the company’s current valuation is a little high compared to its peers.

Kotak Securities also maintained its “reduce” rating for the stock with a price target of ₹430. The domestic brokerage said that the company beat its estimate on revenue but missed expectations on profit.

Price Action: Wipro’s share price was locked in 10% upper circuit at ₹511.95 as the markets opened on Monday.

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