Wipro’s shares saw a significant surge on October 14, after the company announced that its board will discuss a proposal for issuing bonus shares in its upcoming meeting. The stock price reached an intraday high of ₹545.35 and closed at ₹550.70 per share, showing a gain of 4.04%. Bonus shares, which are issued free of cost to existing shareholders, do not impact the company’s overall market capitalization. The proposal for these bonus shares will be reviewed by Wipro’s board in a meeting scheduled for October 16-17, 2024. Investors can seek expert advice from IIFL by contacting their customer care number for queries related to gold, NCDs, NBFC, insurance, and NPS.
Infosys (NYSE: INFY), a leading technology company, has announced a quarterly cash dividend of 0.20 per share of Class A Common Stock. The company will also release its Q2 earnings report on Thursday, October 10, 2024. Investors can purchase shares of Infosys through any online brokerage. Other companies in Infosys's space include Wipro (NYSE:WIT), The Hackett Group (NASDAQ:HCKT), Alpha Technology Group (NASDAQ:ATGL), ASGN (NYSE:ASGN), and Research Solutions (NASDAQ:RSSS). With a consensus price target of $20.70, there is no analysis for Infosys currently.
Experts from IIFL Securities anticipate a marginal revenue decline and a moderate growth in profit after tax for IT giant Wipro's first quarter results. Despite wage hikes and slower growth, the company is expected to see higher end revenue results. However, analysts predict a decline in EBIT margins due to muted revenue growth offset by productivity improvements. Investors should watch out for the company's guidance for the quarter and important management insights.
As Srini Pallia is set to take over as Wipro's new CEO, analysts predict the company's stock to underperform in the near-future due to projected loss of market share and a challenging business environment. With reports suggesting Wipro is losing clients in various sectors, the company will have to navigate both internal and external challenges in order to turn their business around. These factors, combined with the company's already expensive valuations, paint a challenging picture for Wipro's growth potential in the coming years.
Shares of IT giants Infosys and Wipro experienced declines on Wall Street influenced by Accenture's revised revenue projection for 2024, reflecting the cautious economic outlook. The consulting firm's share price tumbled over 9% following its updated forecast, anticipating subdued demand for its services due to economic headwinds. This development highlights the broader challenges faced by the IT and consulting sector, with businesses tightening budgets and limiting spending on additional services. Indian IT majors such as TCS and Infosys have previously reported subdued results, in line with this trend of reduced industry spending. Accenture's third-quarter revenue forecast fell below market estimates and new bookings experienced a decline, contributing to the negative sentiment.
Wipro's share price saw a 10% increase and hit a new 52-week high after reporting higher-than-expected Q3 numbers. The company's net profit increased by 1.8% and operating margin stood at 16%, beating estimates. However, brokerages are divided in their opinions, with some raising EPS estimates while others maintain a cautious stance due to weak Q4 guidance and soft deal. The company's acquisition of Capco in 2021 and strong performance in consulting and AI are expected to drive growth in the future.