On Monday morning, Wipro shares experienced the largest decline over four years as investors penalized India’s fourth-largest IT services company for subpar growth
Despite its competitors’ discussions of a resurgence in client spending and their robust results.
The Nifty IT index was down 0.3% due to the company’s shares declining by approximately 8% as of 10:46 a.m. IST.
Wipro reported a decrease in revenue for the June quarter on Friday and anticipates that IT services revenue in the current quarter will fluctuate between a 1% decrease and a +1 percent increase.
Tata Consultancy Services, Infosys, and HCLTech reported robust results, which have sparked optimism for a recovery in demand in the $254 billion sector.
Since the release of the results on Friday, at least six analysts have decreased their ratings on Wipro’s stock, and three have decreased their target price, according to LSEG data.
Wipro’s deal victories decreased by 11% from the previous year, while Infosys, which discloses the number of bookings exceeding $50 million, reported a 78% increase in contract wins from the previous year.
Jefferies analysts noted in a client note that Wipro’s growth remains challenging, as evidenced by its broad-based revenue pressures, muted guidance, and lackluster deal wins. Morgan Stanley analysts anticipate that Wipro will continue to underperform its peers shortly.