The third largest software exporter came on the top performer charts at BSE on Friday, just after they announced a share buyback offer. The offer lifts the price from the previous day close of 269 to 290. On Friday morning Wipro share opened at 282 and made 52 weeks high of 290.90. However, analysts seem not too confident with the company’s future prospects, and the research and brokerage firm Morgan Stanley maintained its ‘underweight’ rating on Wipro shares with a target price of Rs 240. Although Morgan Stanley said that Wipro has surprised on profit earnings for the last two consecutive quarters.
As estimated the buyback plan is of 11,000 crores which worth 8.4% of the current market capitalization of 1.4 lakh crore and becomes the second-biggest buyback offer in 18 years. On Thursday Wipro announced flattish numbers with 0.9% sequential growth in revenue for the June 2017 quarter and its net profit at Rs 2,083 crore during the first quarter ended in June.
The long term picture is still hazy for the traders and investors.But the buyback decision can add some fuel with the upside of the price of 320 in the coming weeks.While the overall sentiments are negative till 240 for this quarter.
Wipro Limited is a Indian software technology giant headquartered in Bangalore, it got demerged with Non Information Technology services for operational ease. Company was established in 1945. Wipro entered into Information Technology sector in 1980-81. Currently Azim Premji is spear heading the group.