Wipro achieves milestone, touches Rs 3 lakh crore mark in market capitalization

On Thursday, Wipro Limited touches Rs 3 lakh crore mark in market capitalization. After Tata Consultancy Services and Infosys, Wipro becomes the third IT company to reach this milestone. India altogether have 13 firms that have reached 3 lakh crore mark in market-cap. Wipro’s share got raised by 1 percent to scale its new lifetime of Rs 550. This led its market-cap to surpass the 3.01 lakh crore mark .

The company’s stock retreated to Rs 543.80 on Thursday, 11:15 am . At that moment, BSE Sensex was trading 217.88 points, or 0.43 percent, higher at that time. In terms of market-cap, Wipro competed with Bharati Airtel and Asian Paints. With almost Rs 14 lakh crore market cap, Reliance Industries became one of the most valued Indian Company. Tata Consultancy Services, HDFC bank reached Rs 11.6 lakh crore and 8.35 lakh crore respectively.

In 2018, the company earned a 33.33 percent stake in Denim Group and Denim Group Management, LLC, an independent application security firm for $8.83 million. On Wednesday, Wipro informed that it sold its entire stake in Denim Group for a consideration of $22.42 million. The Company’s stock began to grow when Thierry Delaporte joined Wipro as its CEO and MD. In 2021, the shares of IT service providers increased by 40 percent and 157 percent considering the last one year.

Under the leadership of Thierry Delaporate, Wipro earned its largest deal from German retailer Metro. The company witnessed deal wins of Rs 7.1 billion of which $2.6 billion are large deals in the second half of 2021. Wipro too experienced healthy transaction like cloud customer experience and cyber securities in fourth quarter. According to analysts with restructuring of organization, client mining and aspiration to win one large deal every quarter will lead to sustained revenue growth in the longer run.

ICICI Direct in a note to its investor  stated, ” We believe Wipro’s strong full service capabilities across applications, infra, BPS and engineering will help in winning integrated deals and help win large deals as seen in recent quarters. Hence, we expect the company to register 20 percent YoY dollar revenue growth in FY22E(of which 13 percent is organic and rest through acquisition) and 13 percent YoY in FY23E”.

Brokerage firm Elara Capital stated,” The new CEO strategy refresh , which could: revive growth on improving win rates and underlying uptick in digital demand and drive higher profitability. Strong cash conversion, net cash at Rs 34500 crore and strong capital allocation provide cushion to our call.”

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