Azim Premji-Backed IT Stock Jumps 4.3 Per Cent With 2.5 Times Spurt In Volume As Board Is Likely To Announce Bonus Shares
The stock is up by 46.5 per cent from its 52-week low is Rs 375 per share.
On Monday, the Indian stock market witnessed a positive close, with the BSE Sensex Index gaining 0.73 per cent to reach 81,973. Amidst this green backdrop, a Large-Cap IT stock backed by the renowned entrepreneur Azim Premji caught the market's attention. This particular stock experienced a significant surge, jumping 4.3 per cent to an intraday high of Rs 551.70 per share from its previous closing of Rs 528.95 per share. As the trading day concluded, shares of this company were trading at Rs 549.45 per share, representing a 3.88 per cent increase. Notably, there was a remarkable spurt in trading volume for this stock on BSE, with 2.50 times the average daily volume being traded.
The buzzing stock name is WIPRO LIMITED.
The Board of Directors of Wipro Limited will meet on October 16, 2024 and October 17, 2024 to discuss a proposal for issuing bonus shares. This potential move is aligned with the provisions of the Companies Act, 2013, SEBI regulations, and aims to reward existing shareholders. The company will promptly disclose the outcome of this meeting to the relevant stock exchanges.
Wipro Ltd is a leading global information technology, consulting, and business process services (BPS) company. It is the fourth-largest Indian player in the global IT services industry, following TCS, Infosys, and HCL Technologies.
DSIJ's 'Large Rhino' service recommends blue chip stocks of Large Cap companies that have leadership positions in their category. If this interests you, do download the service details here.
Business Segments:
1) IT Services Segment (99.7 per cent in Q1 FY25): Wipro offers a comprehensive suite of IT services, including digital strategy advisory, customer-centric design, consulting, application development, and systems integration. In FY24, revenue from this segment declined by 4 per cent year-over-year (YoY), and in Q1 FY25, it decreased by 1.2 per cent quarter-over-quarter (QoQ). However, operating profit margins improved from 15.6 per cent in FY23 to 16 per cent in FY24 and further to 16.5 per cent in Q1 FY25.
2) IT Products Segment (0.3 per cent in Q1 FY25): Wipro provides third-party IT products such as computing, networking solutions, and software products. Revenue from this segment decreased by 32 per cent YoY in FY24 due to a strategic shift towards offering products as complements to services.
Market Position: Wipro is the fourth-largest Indian player in the global IT services outsourcing industry in terms of revenue.
The company has a market cap of Rs 2,87,442 crore with a PE of 26x, an ROE of 15 per cent and an ROCE of 17 per cent. The stock is up by 46.5 per cent from its 52-week low is Rs 375 per share. Investors should keep an eye on this large-cap IT stock.
Disclaimer: The article is for informational purposes only and not investment advice.