Wipro outshines TCS, Infosys and others with a 31% jump in share price over the last two months

Wipro outshines TCS, Infosys and others with a 31% jump in share price over the last two months
Wipro’s bull run leaves TCS, Infosys and others in the dust as it hits ₹3 lakh crore market cap BCCL
  • Indian IT behemoth Wipro touched the ₹3 lakh crore market cap milestone on June 3.
  • Thursday’s high comes after the company announced its new partnership with Finastra, a fintech giant that serves 90 of the top 100 banks globally.
  • With Wipro focusing on the banking sector, the company’s stock has rallied by over 31% with TCS, Infosys, HCL Tech and Tech Mahindra showing muted share price movement in the last two months.
The Indian information technology (IT) giant, Wipro, touched the ₹3 lakh crore ($41 billion) market cap milestone in early trade on June 3. In the last two months, its stock has far outperformed its peers.

Wipro outshines TCS, Infosys and others with a 31% jump in share price over the last two months
Wipro's share price from 1 April 2021 to 3 June 2021BI India

Wipro’s share price has rallied by over 31% since April 1, whereas the stocks of other IT companies — Tata Consultancy Services (TCS), Infosys, HCL Tech and Tech Mahindra — have, more or less, stagnated. Among top five IT players in India, HCL Tech was the worst performing with its share price dipping by nearly 6%.
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CompanyIncrease in share price since 1 April 2021
Wipro31%
Tech Mahindra2.5%
TCS1.2%
Infosys-0.4%
HCL Tech-5.9%
Source: Compiled using BSE data
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Wipro is expected to bring in more revenue than its peers this year


In the fourth quarter, Wipro net profit grew by 27% as compared to the same three months the year before. This was the company’s best result in nearly a decade. The last time it delivered double-digit growth in its quarterly net profit was in FY16.

Barring Wipro, most IT companies have seen muted share price movement since the results of the previous financial year came out.

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Wipro outshines TCS, Infosys and others with a 31% jump in share price over the last two months
Performance of the top 5 Indian IT companies over the last two monthsBI India

However, all five of the top IT companies in India are bullish about their prospects in the ongoing financial year. Riding the wave of outsourcing and cloud adoption, IT players are aiming for double-digit revenue growth.

CompanyRevenue guidance (in constant currency terms)Operating margin guidance
TCSDoes not issue guidanceDoes not issue guidance
Infosys12-14%22-24%
HCL TechDouble-digit growth19-21%
Wipro8-10%
Tech MahindraDouble-digit growth in enterprise, and single digit growth in telecomLess than 15%

With its focus on growing the banking, financial services and insurance segment (BFSI), expected recovery in manufacturing, and lead in healthcare, analysts predict that Wipro will deliver higher revenue growth than its peers over the next two years.

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Wipro outshines TCS, Infosys and others with a 31% jump in share price over the last two months
Expected revenue growth of top 5 Indian IT companies in India in FY 22 and FY 23BI India

Wipro management disclosed they don’t see overall spending coming down anytime soon, during the fourth-quarter earnings call. Cloud solutions account for 25% to 30% of Wipro’s revenue and it is growing much faster than the average growth of the company.

What is driving Wipro’s share price rally?


Wipro has seen a flurry of activity this week. The jump in Wipro’s share price comes after the IT giant announced its new partnership with Finastra — a fintech giant that serves 90 of top 100 banks globally — to help its client banks with their digital transformation.

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Wipro said that the new partnership is focused on its clients in the Asia-Pacific region. This includes India’s largest public sector bank — the State Bank of India (SBI) — and ING Australia, the fourth biggest bank on the island nation.

The company also sold its entire stake in Denim Group, a application security firm, for a consideration of $22.42 million. That’s triple what Wipro paid for its 33.33% stake back in march 2018.

Furthermore, the enterprise picked up a minority stake in Squadcast, an incident response platform that helps software engineers do on-call scheduling, for $1.2 million.

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