Slow revenue growth, execution problems remain Wipro's Achilles heel

Analysts expect the 44% valuation discount to stay

The Wipro stock has underperfored its larger IT peers and the sector over the last year. 

Since its lows in November, Wipro has clawed back with gains of just 4 per cent, while the sector has bounced back by 18 per cent. While the large buyback has supported the stock, sluggish performance in recent quarters and a muted guidance have kept the lid on the upside. 

Manik Taneja and Devanshu Bansal of Emkay Global believe the relative underperformance will continue in FY20, as sectoral weakness could lead to moderation in growth in the financial services vertical (32 per cent of revenues). The