Wipro Beats HCL To Become India’s 3rd Most Valuable IT Company; Only These 2 IT Firms Are Now Above Wipro
Wipro Makes A Comeback
According to the BSE data, with an m-cap of Rs 2.65 trillion Wipro stood at number 12 in the overall m-cap ranking at 09:37 am whereas HCL Technologies slipped to number 13 with an m-cap of Rs 2.62 trillion.
Apparently after a gap of 18 months, Wipro has regained this spot.
TCS, with a market-cap of Rs 11.47 trillion, is at number one position in IT companies market-cap rank and it is followed by Infosys with a market-cap of Rs 5.72 trillion.
After the IT giant reported a healthy IT services revenue growth and margins in the March quarter (Q4FY21), shares of Wipro hit a record high of Rs 494.50 on Thursday, ralling 16 per cent in the past five trading days.
During the same period, however the shares of HCL Technologies were down 2 per cent. The shares of the company hit an all-time high of Rs 1,073.55 on January 13. Today, the company shall announce its Q4FY21 results.
Led by a healthy volume growth, Wipro delivered strong results for a third quarter in a row after a muted growth over the last few years. The company, after a steep decline in Q1FY21, bounced back sharply.
What Brokerage Firms Have Got to Say About it!
According to analysts at Edelweiss Securities, coupled with a strong demand environment, the turnaround of Wipro has been led by the strategy of the new CEO. Improved execution is also likely to drive earnings going ahead. The firm is optimistic about the demand environment and this the reason why the brokerage firm maintains ‘BUY’ on the stock with an unchanged target price of Rs 550.
Deal wins, to $1.4 billion, which were up 16.7 per cent quarter on quarter (QoQ), net addition of 7,404 employees, and higher offshore up 180 bps to 54.5 per cent were the key highlights of this quarter as per the ICICI Securities.
Translating to a 2.0-4.0 per cent QoQ growth, the firm said that the Q1FY22E guidance IT services revenues would be in the range of $2,195 – 2,238 million and it doesn’t include announced acquisitions of Capco and Ampion. All the key ingredients of robust growth in the long run are possessed by Wipro, said the brokerage firm. In addition to these key ingredients, improved deal wins, higher demand in Europe, client mining, acquisition of new logos and traction in digital revenues are the reason why the brokerage firm is positive on the stock from a long term perspective.