All the big IT companies in the country have made strong profits in the last one year. But in the race for profitability, Wipro has left other big companies behind. Especially companies like TCS, Infosys and HCL Tech lagged behind.
In fact, Wipro has delivered an excellent return of 47 per cent in the last one year. After this, Tech Mahindra Limited (45.72 percent), HCL Technologies Limited (43.85 percent), Infosys Limited (33.46 percent) and TCS (24.81 percent) have given returns.
New target for Wipro shares
Meanwhile, the brokerage maintained its earnings estimates for IT giant Wipro but raised its target valuation to 25 times from 20 times estimated FY27 EPS due to strong growth recovery. The brokerage has now given Wipro a ‘Buy’ rating from ‘Hold’ and increased the target price from Rs 520 to Rs 700.
Nuvama Institutional Equities says Wipro is once again at that inflection point: where there is a new CEO, new expectations, new expectations. According to the brokerage, after the Federal Reserve’s interest rate cut in September 2024 and improving macro dynamics in the United States, the IT sector will receive a boost and Wipro will also benefit from it.
Apart from this, Nuwama said there are segments in Wipro’s portfolio that will see a strong recovery in the coming quarters. Its consulting arm (mainly Capco) has been growing for the last two quarters.
Successfully experiment with a new external CEO
Let us tell you that Wipro has appointed Pallia as the new CEO in April 2024. After appointing an external face as CEO for 14 years, the company has now opted for an internal face as an experiment. Which so far has been a success for the company.
At the end of trading on Wednesday, Wipro shares closed at Rs 583.85 down 0.87 per cent. In the last one month it has given a return of around 4.52 percent. While in 5 years Wipro has given a return of 145.62% to investors.
Notably, Wipro Limited is India’s fourth largest IT company, headquartered in Bengaluru. It was founded by Azim Premji. There are around 2.33 lakh employees in this company. The largest IT companies are TCS, Infosys and HCL Tech.
