Shares of Wipro hit a fresh record high of Rs 467, up 2 per cent, on the BSE on Wednesday ahead of the October-December quarter (Q3FY21) results. The information technology (IT) consulting & software company will announce its results after market hours today.
In the past one month, Wipro has outperformed the market by surging 32 per cent as compared to an 8 per cent rise in the S&P BSE Sensex. However, in the past three months, post the July-September quarter (Q2FY21) results, the stock has moved in line with Sensex and gained 23 per cent as against a 22 per cent gain in the benchmark index.
Wipro has signed a mega-deal with Metro that provides minimum revenue commitment of $700 million over a period of 5 years and minimum $1 billion in case the deal gets extended by another four years to a total duration of 9 years. Aggression in new management is clearly visible as Wipro has announced decent amount of deal wins (5) in this year which includes Marelli, Verifone, Fortum, EON, and John Lewis.
Analysts at Prabhudas Lilladher believe cultural shift and growth focus was long overdue in Wipro and the brokerage firm sees bold management initiatives translating into large deal wins for the company. In the analyst meet, management mentioned: Execution = Accelerated growth X Sustained margins, along with healthy cash conversion and optimal use of cash. With multiple deal wins’ management has proved their mettle in execution, it said in a company update.
Meanwhile, analysts expect Wipro to post decent revenue growth, minimum-to-no impact on EBIT (earnings before interest and tax) margins and a 5-10 per cent year-on-year (YoY) jump in its net profit for the Q3FY21. CLICK HERE FOR BROKERAGES VIEW