IT company Wipro Ltd was in focus following its investors day held last week. Its management remains upbeat on growth momentum and expects margins to be stable. According to the management, demand environment is strong and broad based with all industry verticals witnessing good traction. Within geographies, its earlier growth driver, the US – continues to grow, while Europe has witnessed strong acceleration, the management said.
This IT giant aspires to be the orchestrator of choice for customers on Cloud deals, allowing it to partner both with clients and Hyperscalers. Also it reiterated its plan to invest $1 billion in building its Fullstride Cloud service and plans to continue to invest in other high growth areas, the management added.
The management added that investment in the sales channels via lateral leadership hires, a large deals team, and strategic partnerships, are expected to power growth.
Shares of the company traded flat on the National Stock Exchange on Monday despite weakness in the markets.
Analysts at Kotak Institutional Equities are of the view that Wipro has made good progress on turnaround plans outlined by its CEO at the analysts’ day. “The company will build on initial success to pursue ambition to be an industry and growth leader. Wipro aims to play the role of an orchestrator for clients’ technology ecosystem to help drive business outcomes and value from cloud investments,” it said in a report. While the turnaround is progressing well, it is more than adequately discounted in its full valuations, added Kotak analysts.
Sharing a similar view, analysts at Motilal Oswal Financial Services Ltd said, “We maintain our Neutral stance as a successful turnaround from its growth is aptly priced into our estimates and valuation.”
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