Wipro’s (WIPR.NS) shares fell sharply on Monday morning, experiencing their biggest drop in over four years, as investors reacted negatively to the company’s weak growth. This downturn came as Wipro lagged behind rivals, who reported strong results and a rebound in client spending.
By 10:46 a.m. IST, Wipro’s shares had dropped about 8%, impacting the Nifty IT index (.NIFTYIT), which was down 0.3%. On Friday, Wipro announced a decline in revenue for the June quarter and forecasted IT services revenue for the current quarter to fluctuate between a 1% decline and a 1% increase.
In contrast, Tata Consultancy Services (TCS.NS), Infosys (INFY.NS), and HCLTech (HCLT.NS) all posted robust results, sparking optimism about a recovery in the $254 billion IT sector. Since Wipro’s results, at least six analysts have downgraded the company’s stock, and three have reduced their target prices, according to LSEG data.
Wipro reported an 11% decrease in deal wins compared to last year, while Infosys saw a 78% increase in contract wins over the same period. Analysts from Jefferies and Morgan Stanley have noted Wipro’s ongoing revenue pressures, weak guidance, and declining deal wins, suggesting that growth remains a significant challenge for the company and that it is likely to continue underperforming its peers.
