Azim Premji’s stock among the worst-performing blue-chip stock!
Well, the culprits seem to be a lack of short-term deals and the weakness in key sectors like banking, financial services, insurance, technology, and telecom
In the ever-evolving world of stocks and investments, there are stories that captivate our imagination, stories of ordinary people who, with a bit of foresight and a dash of luck, turned a modest sum into unimaginable wealth. One such story revolves around the Indian IT giant, Wipro, and how an initial investment of just Rs 10,000 could have transformed into a staggering fortune over the decades and real multibagger. It's a tale that leaves us in awe of the potential of the stock market, but it's not all sunshine and rainbows.
Picture this: You put Rs 10,000 into Wipro some years back, and you sit back, confident that your investment will blossom. After all, this is the company that Azim Premji built, a name synonymous with success and innovation. Fast forward to today, and you're in for a shock - your Rs 10,000 has dwindled by almost half. Yes, you heard it right, the stock that once promised fortunes has done quite the opposite.
Wipro's recent performance has been far from spectacular. Over the past two years, the stock has nosedived by a whopping 46 per cent. That's right, nearly half its value wiped out, and that's despite giving it ample time to flourish. Even the Nifty IT index, which includes other tech giants, took a hit, but it's nothing compared to Wipro's plight. The Nifty IT index dropped by 14.33 per cent, a tough hit indeed, but Wipro's staggering 46 per cent plunge is the headline grabber here.
But wait, the plot thickens. It's not all gloom and doom for Wipro. Despite its abysmal stock performance, the company has seen a streak of robust order inflows for the last four quarters. This gives us a glimmer of hope, a tiny ray of sunshine in the dark clouds hovering over the stock. However, a muted guidance for the upcoming quarters, ranging from -3.5 per cent to -1.5 per cent QoQ CC growth for Q2 FY24, has raised questions. What's holding Wipro back?
Well, the culprits seem to be a lack of short-term deals and the weakness in key sectors like banking, financial services, insurance, technology, and telecom. These sectors have historically been the bread and butter for IT companies, but in Wipro's case, they've become roadblocks on the path to success.
Amidst all of this, one name still looms large over Wipro's fate - Azim Premji, the former chairman and a well-known philanthropist. As of September 2023, he's the fifth richest Indian billionaire, and he individually holds a substantial stake of 4.43 per cent in the company. That translates to a staggering 225,808,537 shares of Wipro.
So, dear readers, we're left with a question - do you hold shares of Wipro, and do you believe in the potential of a strong comeback?
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Disclaimer: The article is for informational purposes only and not investment advice.