Wipro stock rebounds 12% from November low, hovers near 52-week high
Wipro have bounced back strongly, gaining 12% to ₹422 apiece from the November low of ₹377. This resurgence has positioned the stock in close proximity to its 52-week high of ₹443.75 apiece.
Also Read: Mega deals dried up at Wipro before team lead’s departure Despite the recent recovery, the stock remains 43% below its all-time high of ₹739.85 apiece. In its recent note, domestic brokerage firm Motilal Oswal said that Wipro's business has been lackluster over the last six quarters, following a robust FY22 performance after Thierry Delaporte assumed the role of CEO in July 2020.
Also Read: Cyient stock more than doubled investor wealth in less than a year; should you buy? The brokerage pointed out that demand softness in key verticals (BFSI and consumer) and high exposure to discretionary consulting verticals (especially Capco) have weighed on Wipro's operational performance, despite significant internal changes to improve decision-making and refresh business leadership. While uncertainties surround the timeline for macroeconomic recovery in key markets, the brokerage said that easing inflation and lower interest rates could stimulate discretionary spending.
Also Read: InCred raises FY24 Nifty target to 23,191; lists 6 key reasons Given the high consulting exposure, the brokerage said Wipro could be among the early beneficiaries of a demand revival. It said this can act as an upside surprise for the stock with low expectations and a large valuation gap with peers (16% and 23% discount to large-cap and overall peer median FY25 P/E).
"We believe that the current valuation of 18x FY25E EPS is relatively inexpensive and can improve once the macroeconomic environment improves. We keep a close watch on macro-recovery and
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