IT services major Wipro is at a crossroads once again– new CEO, new expectations, new hopes. However, Nuvama Institutional Equities said, there are two big differences this time: 1) its portfolio with higher exposure to discretionary spends is favourably placed to ride the macro recovery; and 2) the CEO this time is an internal lifer, looking to take the old guard along on the path of achieving growth on a par with peers. The current combination of a favourable portfolio, new CEO and inexpensive valuations, the report added, make for an attractive risk-reward profile. “We maintain our estimates and raise (and roll forward) target valuation to 25x FY27E PE (from 20x Sep-26 PE) on sharper growth recovery,” it added. Wipro, along with companies such as Infosys, LTIMindtree, and Mphasis, has relatively high exposure to discretionary spends, which is around 60-65 per cent of revenue. Wipro had to bear the brunt of cut or hold on discretionary spends over the last few quarters, which led to a decline in top line in FY24.