Wipro stock has shown exponential growth since surged since Thierry Delaporte became CEO and MD of the firm. On Thursday, the Wipro stock surge helped the firm to cross the $3 trillion market cap. Tata Consultancy Services and Infosys are the other two Indian IT business giants who have crossed Rs 3 trillion marks.
Wipro Hit Rs 3 Trillion Market Cap
The year 2021 has become one of the productive years for Wipro. The stock surge has sent Wipro to Rs 3 Trillion market cap club. Total 13 listed firms have reached this mark in India. From the Indian IT sector, Wipro is the third company to do so. TCS and Infosys are the other two Indian IT firms that have already reached Rs 3 trillion market capitalization.
Today morning, Wipro stock surged to Rs 550 in the early trading that helped the firm to reach Rs 3.01 trillion. India’s benchmark equity index Sensex rose 0.6% to 52,169 points.
The company recorded the lowest stock value in June 2020. Since then, the firm saw a stock value surge by 164% up to now. In 2021 itself, Wipro’s share has increased by 41%.
Among 14 Indian firms that have crossed Rs 3 trillion, Wipro ranks 14th in terms of market cap. with a market cap of Rs 14.05 trillion, Reliance Industries ranks first among all Indian listed firms.
TCS and HDFC Bank rank 2nd and 3rd respectively with Rs 11.58 trillion and Rs 8.33 trillion among 13 listed firms.
How Wipro Reached $3 Trillion Market Cap?
Financial experts credit Thierry Delaporte for the Wipro stock surge. Since the time he joined Wipro as CEO and Managing Director, he brought a lot of changes to Wipro. At the top management level, he slashed a 25 person team to four.
Under Thierry’s leadership, Wipro signed one of the biggest deals with German retailer Metro. Overall, the company won $7.1 billion deals. Out of that, $2.6 billion belongs to the large contract signed in the second half of 2021.
Talking about the latest Wipro policies and the surge in stocks, ICICI Direct in a note to its investors, said:
“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% YoY dollar revenue growth in FY22E (of which 13% is organic and rest through acquisition) and 13% YoY in FY23E.”
Elara further added:
“The new CEO’s strategy refresh, which could: revive growth on improving win rates and the 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.”
