Wipro outperforms competitors on strong trading day
- Wipro, an India-based IT services company, reported a 12% decline in net profit year-on-year for the third quarter of the current financial year, but beat analysts’ expectations and saw a 20% growth in large deals1.
- The company’s stock surged 18.2% on Friday, January 12, 2024, marking its best day in 16 years and breaking out of its consolidation phase1. The stock also outperformed its peers such as TCS, Infosys, HCL Technologies, Tech Mahindra, and LTI2.
- The market speculation that Wipro is considering a change of leadership, amid a spate of senior exits and lackluster performance in the past six quarters, also boosted the stock price2. However, the company denied all such rumors in a statement2.
- Wipro’s CEO Thierry Delaporte said he was “starting to see early signs” of a return to growth in IT consulting, especially in the Capco business that the company acquired in 20211.
- Wipro’s stock has rallied 30.6% over the past three months, while the Nifty IT index has gained 9.8%1. Analysts expect the stock to rise further, up to ₹490-520 in the short-term, if it can sustain around ₹440-4452.
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