Wipro brings cheer

Wipro is the firm top gainer on the BSE as its Q1FY21 numbers took everyone by surprise, beating all estimates.

The stock saw some unprecedented jump in volumes of almost 17 times, with the stock hitting the 10% UC twice – first at Rs.247.55 and second at Rs.258.80. It is currently ruling at Rs.260 and its UC for the day is now at Rs.270.05.

The company did well with IT Services revenue declining by over 5% (QoQ) to Rs.14,922 crore while revenue in US dollar fell over 7%.

The market was happy about its margins – operating profit margin rose to 19% v/s17.6% (QoQ),  helped by better utilization of employees and cost rationalization measures. This is a huge improvement over TCS’s margin which for the quarter fell 150 bps on a sequential basis.

Brokerage house Citi promptly upgraded the stock from neutral to buy and hiked the target price from Rs.230 to Rs.260.