Wipro becomes third IT company to hit $4 trn market-cap after these two – Brokerage bullish on stock

Amid better-than-expected second-quarter results in the financial year 2021-22, the shares of Wipro have jumped around 10 per cent, aiding the market capitalisation to touch the $4-trillion mark on the BSE intraday trade on Thursday. The stock also hit a fresh 52-week high to Rs 739.8 per share. 

Wipro, an index heavyweight, became the third Indian IT major, after Tata Consultancy Services (TCS) and Infosys. Wipro is also the 13th company across the market on the BSE to achieve this feat on Thursday.  

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The other 12 companies with over $4 trillion market-cap are Reliance Industries, TCS, HDFC Bank, HUL, Infosys, HDFC, ICICI Bank, Bajaj Finance, ITC, SBI, Kotak Mahindra, and Bharti Airtel.  

The shares of Wipro at around 02:12 pm were trading almost 6 percent to Rs 712.65 per share on the BSE as compared to a 0.77 per cent rise in the BSE Sensex during the same time. 

The global brokerage firm Macquarie has maintained an outperform call on Wipro, while raising a price target to Rs 780 per share after the results announcement of the company.  

The brokerage said strong execution led to a revenue beat in Q2, similarly, deal wins remain healthy with $580 million of wins in Q2 and also raises FY22-24 EPS estimate by 2-3 per cent. 

Bengaluru-based IT service provider Wipro reported strong revenue growth for the Q2 at 8.1 per cent on quarter-on-quarter and 28.8 per cent year-on-year, the company said on Wednesday.   

It recorded a net income of Rs 29.3 billion ($395.2 million) for the reporting quarter, an increase of 18.9 per cent YoY, while Earnings Per Share (EPS) for the quarter was at ₹5.36 ($0.071), an increase of 23.8 per cent YoY. 

The company said that it expects revenue from our IT Services business to be in the range of $2,631 million to $2,683 million, which translates to a sequential growth of 2 to 4 per cent.