Wipro share price surged as much as 9.5 per cent to Rs 471.75 apiece, a fresh 52-week high, on BSE on Friday, a day after the IT firm posted the best results in the last 10 years.
Wipro share price surged as much as 9.5 per cent to Rs 471.75 apiece, a fresh 52-week high, on BSE on Friday, a day after the IT firm posted the best results in the last 10 years. So far in today’s session, 5.98 crore shares of Wipro have exchanged hands on NSE, while 29.44 lakh shares have been traded on BSE. Wipro was the third IT company to announce fourth quarter earnings this week, following TCS and Infosys. The share prices of TCS and Infosys, respectively, were the top Sensex losers on the very next day of the earnings, as they missed analysts estimates. Wipro has registered another quarter of strong growth with net profit rising by 27.78 per cent on-year. “Technically, due to strong results, Wipro charts look better than both TCS and Infosys, and a daily close above above Rs 461 should lead to targets of Rs 475 and Rs 515 in the coming weeks,” AR Ramachandran, Co-founder & Trainer, Tips2Trades, told Financial Express Online.
Wipro also said that the interim dividend of Re 1 which was announced in January this year, will be considered as the final dividend for the financial year 2020-21. Wipro continues to outperform, after the company indicated that the Wipro’s higher growth momentum was led by a good deal book and execution and guided strong momentum to continue, Ashis Biswas, Head of Technical Research at CapitalVia Global Research, told Financial Express Online. It may be noted that for the quarter ended March, Infosys posted a 2.6 per cent drop in consolidated net profit to Rs 5,078 crore, which was lower than analysts’ expectations of Rs 5,170.2 crore. Despite Infosys announcement of pay increases in January, the period’s attrition rate grew to 15.2 per cent from 10 per cent the previous quarter as the demand for professional talent in the sector soared. “This factor is primarily responsible for the stock’s underperformance,” Biswas added. While TCS stock witnessed profit booking after a significant double-digit rise over the last quarter. Even though the company reported a robust quarterly number.
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Wipo shares have surpassed the previous 52-week high of Rs 467.20 apiece, touched on January 13 this year. Nifty IT index was the top sectoral gainer so far in intraday deals, led by gains in Wipro, Coforge, L&T Infotech, Oracle Financial Services Software, HCL Technologies, Tech Mahindra and Mindtree, which were up in the range of 1-9 per cent.
Analysts at Reliance Securities said that during the fourth quarter of FY21, Wipro reported sequential constant currency growth of 3% and EBIT margin of 21% which was ahead of expectations. On the other hand, TCS largely reported inline print whereas Infosys missed on revenues with elevated attrition levels. “Wipro also reported strong deal wins of US$1.4bn which improves FY22 growth visibility. We highlight that Wipro currently trades at ~22% discount to larger peers and current improved growth visibility and increasing client relevance supports case for re-rating,” Suyog Kulkarni, Senior Research Analyst at Reliance Securities, told Financial Express Online.
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