Wipro Limited has achieved a figure of Rs 4 trillion (ie Rs 4 lakh crore) in market capitalization.
Wipro Limited has achieved a figure of 4 trillion rupees (ie Rs 4 lakh crore) in market capitalization on Thursday. The reason for this is that the IT company’s earnings in the September quarter were better than expected and its shares have jumped. Some brokerages have increased their target price for the company’s stock after earnings. It is the third IT company and the 13th listed Indian company to have achieved the Rs 4 trillion mark in market capitalization.
Shares of Wipro have reached a record high of Rs 739.90 per share on Thursday. At 1 pm, the stock is trading at Rs 730 on the BSE, a jump of 8.4 per cent from its previous close.
Only 12 Indian listed companies have so far achieved the market cap figure of Rs 4 trillion. These include Reliance Industries Limited, Tata Consultancy Services, HDFC Bank, Hindustan Unilever Limited, Infosys, HDFC Limited, ICICI Bank, Bajaj Finance, ITC, Kotak Mahindra Bank, Bharti Airtel Limited.
What do experts say?
Axis Capital said in a note to its investors that Wipro has developed a strong business structure over the past few years. He has several long-term contracts with the world’s largest banks. With this, the EBITDA margin is expected to increase in the near term due to depreciating rupee, lower travel cost and lower on-site expenses. The brokerage company has given a buy rating for the stock and has a target price of Rs 655.
Apart from this, brokerage company BoB Capital Markets has raised the rating for the stock and put it on buy and has increased the target price by 25 percent to Rs 840 per share. At the same time, Motilal Oswal has increased the target price to Rs 710, which is an increase of 6 percent.
Company’s profit fell 9.6% in the second quarter
Let us tell you that Wipro said on Wednesday that the company’s consolidated net profit fell 9.6 percent to Rs 2,930.7 crore in the quarter ending September. The company’s consolidated revenue grew by 7.7 per cent to Rs 19,667.4 crore in the quarter. The reason for the decline in the company’s profit has been the payment of higher taxes and sharp rise in costs. For the quarter, the IT services segment grew 6.9 per cent in US dollar terms. It has reached $2.58. The growth of the company in the IT services segment in rupee terms was 8.1 per cent on a quarterly basis. Wipro said it expects revenue growth of 2-4 per cent in the December quarter.
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Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.