Wipro Touches 3 Tn in Market Capitalisation

For the first time, Wipro touches ?3 trillion in market and has turned to be the third Indian IT firm to achieve this milestone.

The stock has struck a record high of 550 in early trade and its market capitalisation stood at 3.01 trillion. India's benchmark equity index Sensex rose 0.6 percent to 52,169 points.

Tata Consultancy Services and Infosys are the two IT companies that have achieved this feat. India has a total of 13 listed firms that have crossed the $3 trillion m-cap. Wipro now ranks 14th.

Reliance Industries is India's most valued company with a market capitalisation of 14.05 trillion, followed by Tata Consultancy Services Ltd and HDFC Bank with m-cap of 11.58 trillion and 8.33 trillion, respectively.

Wipro stock has surged since Thierry Delaporte joined as CEO and MD of the company. Delaporte slashed the top ranks of leadership from 25 people to four. The firm won its largest deal ever from German retailer Metro and has seen strong deal wins of $7.1 billion of which $2.6 billion are large deals in second half of 2021, and healthy traction in digital technologies like cloud, customer experience and cyber securities in fourth quarter.

This, coupled with the restructuring of organisation, client mining and aspiration to win one large deal every quarter will lead to sustained revenue growth in the longer run, analysts said.

ICICI Direct says, "We believe Wipro’s strong full services capabilities across applications, infra, BPS and engineering will help in winning integrated deals and help win large deals as seen in recent quarters. Hence, we expect the company to register 21 percent YoY dollar revenue growth in FY22E (of which 13 percent is organic and rest through acquisition) and 13 percent YoY in FY23E."

Brokerage firm Elara Capital has retained its 'buy' rating on the stock with a target price of 529 on "24x FY23E EPS of rs.22".

Elara says, "The new CEO’s strategy refresh, which could: revive growth on improving win rates and underlying uptick in digital demand and drive higher profitability. Strong cash conversion, net cash at Rs34500 crore and strong capital allocation provide cushion to our call."