Wipro CEO Thierry Delaporte's resignation: Shares fall as quick turnaround unlikely
Wipro on Monday fell around 1% to the day's low at Rs 479 on BSE after investors were left surprised by the sudden exit of the Bengaluru-based IT major's CEO and MD Thierry Delaporte. About half of the brokerages have a sell rating on the Nifty IT stock as they believe that transition could create uncertainty in the near term before boosting hopes of a potential turnaround.
Among global brokerages, CITI has a sell rating on Wipro with a target price of Rs 440, CLSA Rs 445 with a sell rating, and Morgan Stanley Rs 450 with an underweight call. Jefferies has an underperform rating on Wipro with a target price of Rs 470 while Nomura has maintained a reduced rating with an unchanged target price of Rs 410.
«We believe the revenue growth recovery for Wipro is going to be slow and unlikely to change significantly due to the CEO change in the near term. We would keep a close eye on his strategy in the coming quarters. We expect Wipro to lag its peer set growth rate in FY25,» said Nomura analyst Abhishek Bhandari.
Investors will await clarity on any strategic or organisational changes and capital allocation from new CEO and MD Srini Pallia.
Pallia has been with Wipro since 1992 and has held numerous leadership roles, including President of Wipro’s Consumer Business Unit and Global Head of Business Application Services. Most recently, he served as the CEO for Americas 1, Wipro’s largest and fastest-growing market, where he led a wide range of industry sectors. Srini will be based out of New Jersey, US and would be the
