Wipro achieves market cap of ₹4 trillion, third IT company to do so

3rd IT company to achieve this and 13th listed Indian firm ₹4 trillion in market capitalization.

Wipro shares hit record high ₹739.90 each on Thursday. At 1 pm, the stock traded ₹730 on the BSE, up 8.4% from its previous close.

Only 12 Indian listed firms, including Reliance Industries Ltd., Tata Consultancy Services, HDFC Bank, Hindustan Unilever Ltd., Infosys, HDFC Ltd., ICICI Bank, Bajaj Finance, ITC, Kotak Mahindra Bank, Bharti Airtel Ltd., have violated it so far. ₹4 trillion market cap mark.

Wipro reports 19% growth in net profit on Wednesday ₹2,931 crore for the quarter ended September, revenue up 30% year-on-year ₹19,667 crore on the back of volume-led growth in markets and business lines. Its revenue in dollar terms grew 8.1% sequentially in constant currency to $2.58 billion, surpassing the $10 billion milestone of an annual revenue run rate.

Wipro, which only provided a forecast for the quarter ahead, said it expects revenue growth in the range of 2-4% for the December quarter, especially in an environment of demand for services related to digital transformation Inspired by improvement.

“This suggests that Wipro, unlike its history, will begin to exhibit general industry seasonality (wherein the sequential growth rate for the company in 2H V/s 1H was always higher). Wipro also continues to pursue new levels of recruitment similar to peers. and suggests that the pipeline remains strong and initiatives around account management are beginning to show results in improving client metrics”, JM Financial said in a note to its investors.

Its commentary in areas such as BFSI, hi-tech media, life sciences and communications remains positive. The retail vertical is expected to recover gradually across geographies in the near future. was on operating cash flow ₹1,879 crore. To ensure on-time deliveries, IT services recruitment remained strong with the closures at 2,21,365.

“Over the years, Wipro has actively built a resilient business structure. With multiple long-term contracts with world’s leading brands, depreciation in INR, lower travel costs and lower on-site expenses, EBITDA margins are likely to expand in the near term,” Axis Capital said in a note to its investors.

The brokerage firm has recommended buy rating on the stock, assigning 28 times P/E multiple to Wipro’s FY24E earnings. ₹To reach the target price of 27.7/share ₹655 per share, representing an increase of 15% over the current market price.

Wipro signed nine major deals in the second quarter of the fiscal with a total contract value of $580 million. Management indicated that 18% growth in deal wins TCV in the first half (ACV – 29%) and strong deal pipeline in markets with a good mix of small and large deals gives good revenue visibility.

Brokerage firm BoB Capital Markets has upgraded the stock to buy and raised its target price by 25% ₹840 per share. Moti Oswal has increased its target price ₹710, up 6%.