Wipro to gain from buyback plan, but re-rating is unlikely anytime soon

Volatile and inconsistent growth of key business verticals likely to impact top line growth

Though the buyback announcement would support Wipro’s stock in the short term, cashing in on the demand opportunities will be a key trigger. Wipro’s sequential revenue growth in the March 2019 quarter (Q4) in constant currency terms fell to 1 per cent, from around 2-3 per cent in the last two quarters. The Q4 growth is also lower than the Street’s expectations of 2 per cent, as well as Infosys’ and Tata Consultancy Services’ (TCS) numbers.

According to Sanjeev Hota, head of research at Sharekhan, Wipro is unlikely to be re-rated unless it regains revenue growth momentum. 

This looks difficult, considering the