Wipro share price tanked a whopping 7 per cent on Monday even as country's third largest software services firm beat Street estimates in its June quarter results. Wipro on Friday posted over 2 per cent increase in consolidated net profit at Rs 2,120.8 crore for the June 2018 quarter.

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The net profit, attributable to shareholders, in the year-ago period stood at Rs 2,076.7 crore.

Reacting to its numbers, Wipro share prices tanked as much as 6.76 per cent to Rs 263.90 on the BSE. 

"Despite tremendous traction in demand environment, specific concerns continue to haunt Wipro’s revenue trajectory. We maintain that Wipro will continue to grow below industry, justifying current valuation of 13.7x FY20E EPS. We await issues to ebb before changing our stance. We retain ‘HOLD/SP’ with target price of Rs 330 (16x FY20E EPS)," said brokerage Edelweiss Securities in a research note. 

Brokerage Kotak Institutional Equities believes Wipro reported better-than-expected revenue performance but disappointed with further decline in its adjusted EBIT margin, while guidance for Q2FY19 came in on expected lines.

"As is always the case, Wipro’s performance has a lot of bright spots (financial services and consumer) and some terrible disappointments (healthcare and manufacturing). Net result—continuing underperformance. The stock is inexpensive and will remain so until the company reaches some consistency in execution. Our FY2019-21E EPS remains largely unchanged," said Kotak Institutional Equities.

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The brokerage maintained REDUCE rating on the stock with an unchanged target price of Rs 295.

Wipro, which gets bulk of its topline from IT services, said it expects revenues from that business to be in the range of $2,009 million to $2,049 million in the September quarter.

"This translates to a sequential growth of 0.3 per cent to 2.3 per cent, excluding the impact of the divestment of our hosted data centre services business which concluded in the quarter ended June 30, 2018," the company said in a regulatory filing.