8 Overlooked Penny Stocks to Invest in

4. Wipro Limited (NYSE:WIT)

Upside Potential as of January 21, 2026: 16.33%

Number of Hedge Fund Holders: 19

On January 19, Morgan Stanley downgraded Wipro Limited (NYSE:WIT) to Underweight from Equalweight, and trimmed the price target from INR270 to INR242. The firm attributes this pessimism to the company’s growth trajectory, saying that fourth-quarter guidance reflects a flattish exit rate in organic terms. Thus, the company will need a significant improvement in consecutive quarterly growth rates to meaningfully enhance its performance.

Keeping this in mind, Morgan Stanley lowered its organic revenue growth estimates for Wipro Limited (NYSE:WIT) by 2.4%, from 4.2% YoY to 1.8% YoY in constant currency terms for FY27. This is based on a gradual ramp-up of contracts over the coming two quarters.

Three days earlier, Wipro Limited (NYSE:WIT) announced its third-quarter FY25 financial results, achieving 1.4% sequential expansion in IT services revenue to $2.64 billion. What’s even more interesting is that the company was able to report better operating margins of 17.6%, underscoring both efficiency and cost management.

Wipro Limited (NYSE:WIT) is an Indian IT, consulting, and business process services company. Founded in 1945, the company operates through two segments: IT Services and IT Products.