This IT company races ahead of TCS, Tech Mahindra in giving return, its name is…, share price is…

Amidst a strong performance by IT majors in this financial year, Wipro has surged ahead of other giants like Tata Consultancy Services (TCS), Infosys and HCL Technologies, and Tech Mahindra, in giving strong returns to investors. According to available data, Wipro has given an amazing 47% return in the last one year, followed by Tech Mahindra Limited (45.72%), HCL Technologies Limited (43.85%), Infosys Limited (33.46%) and TCS (24.81%).
Owing to its stellar performance, brokerage firms have changed Wipro’s rating from ‘Hold’ to ‘Buy’ and raised target price to Rs 700 from Rs 520. The brokerage has retained its earnings for Wipro and raised its target valuation to 25 times to estimated FY27 EPS from 20 times due to sharp growth recovery.
According to major brokerage firms, Wipro stands at a turning point with the IT giant recently appointing a new CEO, giving rise to new hopes and expectations, which it has lived up to so far. As per Nuvama Institutional Equities, the IT sector received a major boost after the Fed cut interest rates in September 2024 and improved macro dynamics in the US and Wipro will also benefit from this.
The brokerage predicted that many segments of Wipro’s portfolio will see strong recovery in the coming quarters, with its consulting arm (mainly Capco) growing strongly for the last two quarters.
Notably, Wipro’s had appointed Srini Pallia as its new CEO in April 2024 — the first time it has appointed a CEO from outside the company in nearly 14 years. The gambit of appointing an ‘outsider’ at the helm has prove to be successful for the company.
Wipro’s stock closed at Rs 583.85 with a fall of 0.87 percent at the end of trading on Wednesday even as the company has given a 4.52 percent return to investors in the last month, and a whopping 145.62% return in the last five years.
Established by Azim Premji, Wipro Limited, which is headquartered in Bengaluru, is the fourth largest IT company in India, behind TCS, Infosys and HCL Tech. The IT major has around 2.33 lakh employees.