Wipro‘s share price tanked over 8% to hit an intraday low of ₹514 after the company’s June quarter earnings missed street estimates.

What Happened: The IT giant reported a net profit of ₹3,003.2 crore for the quarter, reflecting an increase of about 4.6% compared with the ₹2,870 crore posted in the same quarter last year.

Its revenue from operations stood at ₹21,963 crore, a decline of around 3.7% from the ₹22,831 crore reported in the same quarter last year. The firm’s net profit slightly exceeded analyst estimates, which were around ₹2,960 crore, while revenue was slightly below the estimated ₹22,150 crore.

Brokerage Reactions: Morgan Stanley maintained an “underweight” rating on the stock, raising the target price to ₹459 from ₹421.

The analysts anticipate Wipro will continue to lag its peers in revenue growth in the near term, which will keep its price-to-earnings multiple at a steep discount compared to its peers. Despite early signs of recovery tailwinds, Morgan Stanley believes Wipro needs better execution to fully benefit from these opportunities.

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Citi maintained its “sell” rating on Wipro but raised the target price to ₹495 from ₹455. The brokerage noted that Wipro’s Q1 growth was below expectations, with guidance indicating a slow recovery. Despite a 27% uptick since June in anticipation of a sharp recovery, Citi sees no early signs of such a turnaround.

Motilal Oswal maintained its “neutral” rating for the stock with a price target of ₹500. The brokerage said that the company’s revenue and EBIT missed its estimates but profit after tax was slightly above.

Nomura maintains a “buy” rating on Wipro with a target price of ₹600. While Q1 revenue was below estimates and guidance for Q2 was weaker than expected, the analysts noted that margins were in line with estimates and discretionary demand is showing early signs of recovery.

Price Action: Wipro’s share price was down 7.25% to trade at ₹516.80 as the markets opened on Monday.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.