The share price of IT major Wipro rallied over 7 percent on Friday after the firm reported its best Q4 results in ten years. The company sees sequential revenue growth of 2-4 percent in Q1 of FY22 in the range of $2.19 billion to $2.23 billion. This will be backed by a strong demand environment and a robust pipeline of digital deals.

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The stock surged as much as 7.4 percent to its day's high of Rs 463.20 per share. Other IT stocks were also trading higher following the rise in Wipro with the Nifty IT index up over 1.5 percent. L&T Infotech, Mindtree, HCL Tech, Coforge, Tech Mahindra rose between 1 percent and 3 percent.

The company posted a net profit of Rs 2,972.3 crore, a 28 percent rise from the year-ago period, on the back of higher revenues. The revenues for Q4 also grew 3.4 percent year-on-year (y-o-y) to Rs 16,245.4 crore on broad-based growth across sectors.

READ MORE: After best Q4 in 10 years, Wipro to roll out bonuses, promotions

The revenue growth in constant currency terms came in at 3 percent for the March quarter.

“We delivered a third consistent quarter of strong revenue growth, deal wins, and operating margins. We also announced our largest-ever acquisition of Capco, which will bolster our global financial services sector. All key markets are now growing on a YoY basis and this provides us a solid foundation to build on next year's growth rates," said Thierry Delaporte, chief executive officer and managing director, Wipro.

"Led by disciplined execution, we generated strong operating cash flows at 136.7 percent of net income for the full year," the company said. Wipro said it added one client in over $100-million category, three in over $75-million band and two in the over $50-million category.

However, despite strong results, brokerages have mixed views on the stock. While Citi upgraded the stock to 'buy' and raised the target, CLSA retained an 'underperform' rating.

Citi said that the valuations are at a 30 percent and 18 percent discount to TCS and Infosys while CLSA feels the valuation is elevated and prefers a 'wait and watch' approach.

Meanwhile, Nomura also upgraded the stock to 'neutral' and raised the target to Rs 425 per share from Rs 410 earlier. It said that the company is positioned to close some of the revenue growth gaps with peers.

However, Jefferies maintained an 'underperform' call on the stock with a target at Rs 380 per share. It said that revenue and margin were marginally ahead of estimates, adding that revenue growth was broad-based across markets and verticals.