Motilal Oswal keeps Neutral on Tata Communications, Nestle India and Wipro

what happened

Motilal Oswal, as reported by moneycontrol.com, kept Neutral ratings on Tata Communications, Nestle India and Wipro after their second-quarter FY27 results. Tata Communications posted EBITDA up 21% year on year, a 5% beat, with margin widening about 200 basis points to 21.3% as digital losses narrowed; the brokerage set a target of INR1,980.

Nestle India grew revenue 20% to INR67.8 billion, in line with estimates, and EBITDA rose 29% to INR16.2 billion. The brokerage calls the stock richly valued at 52 times FY28 EPS, so it kept its target at INR1,350, based on 50x P/E for September 2028.

Wipro reported IT services revenue of USD2.6 billion, flat quarter on quarter in constant currency, with adjusted EBIT margin at 16.5% against an estimated 16.4%. Adjusted profit came in at INR32 billion, below the INR34 billion forecast, and the target was set at INR170 on 11x FY28E EPS.

why it matters

For market participants, the common thread is valuation: the brokerage describes Nestle India's multiple as rich, while Wipro's order intake fell 22.9% quarter on quarter in constant currency. This summary reports the analysts' conclusions and is not a recommendation from Newsmetry.

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