IT major Wipro's shares rose on Friday morning after it won a $500 million (around ₹4,173.96 crore) contract from a U.S. communication service provider.
What Happened: Wipro said through the deal it will provide managed services for some products and industry-specific solutions. The company said the contract has to be executed in five years.
In May, Wipro announced joining forces with Microsoft to launch cognitive assistants for the financial sector powered by generative artificial intelligence (GenAI).
In its March quarter results, Wirpo's net profits fell 8% from the previous year to ₹2,835 crore. Its revenue from operations came at ₹22,208 crore down from ₹23,190 crore in the previous year. The company had guided for revenue from IT Services business to be in the range of $2,617 million to $2,670 million, resulting in negative 1.5% to a positive 0.5% growth in constant currency terms.
Analyst Views: Nuvama Institutional Equities maintained a "hold" call on the company with a target price of ₹460. According to the brokerage, the overall Q4 performance and guidance for the next quarter are in line with expectations.
They also see signs of gradual improvement in consulting and healthcare services. The CEO transition is expected to elongate the recovery path for Wipro. The company is expected to underperform its peers while its inexpensive valuation and dividend yield will limit the downside.
Prabhudas Lilladher also had a "hold" rating with a target price of ₹440 as they estimate a flat revenue growth and 5% year-on-year constant currency growth with margin improvement of 40 basis points and 50 basis points for FY25 and FY26, respectively.
Price Action: Shares of Wipro surged 3.33% to ₹476.35 in the morning session on Friday.
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