Shares of IT services major Wipro in Friday’s session zoomed nearly 5 per cent to day's high price of Rs 482.35 after the company in an exchange filing informed that it received a contract amounting to US$500 million from the leading US communication service provider.

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As part of the contract, the company will offer managed services for some products and industry-specific solutions over five years.

Morgan Stanley maintained an underweight rating on the counter with a target price of Rs 421, signifying a potential downside of nearly 9 per cent.  The brokerage believes that winning a mega-deal in an environment where discretionary spending remains weak should be construed positively. Nonetheless, despite this deal-win the brokerage said the near-term growth of the technology services and consulting company could lag peers and until the growth gap narrows, the P/E multiple gap could remain wide.

Earlier in the month, the company announced that it has collaborated with  Zscaler to introduce Wipro Cyber X-Ray, an AI-assisted decision support platform. Wipro Cyber X-Ray empowers enterprise CXOs to make optimized security investment decisions and communicate cyber values to senior leadership and the board.

Wipro Q4FY24 results

The company for Q4 posted weaker-than-expected March quarter results with profits increasing 5.2 per cent sequentially. With consolidated net profit coming in at Rs 2,835 crore during the quarter, the company registered an 8 per cent decline on a year-on-year basis. The IT services major reported a profit of  Rs 3,074.5 crore in the year-ago period.

Wipro’s share price performance

In the previous session, the company’s stock ended over 2 per cent higher at Rs 461. Meanwhile, in the last one year the stock has delivered a return of over 15 per cent.