Wipro shares rise over 2% on Q4 results, hopes rise for new CEO turnaround

Wipro share price: Shares of Wipro, India's fourth-largest software services exporter, rose on Monday after company posted better-than-expected fourth-quarter results. stock price increase comes amidst optimism surrounding new CEO Srinivas Pallia's ability to le a turnaround.

Wipro shares surged by as much as 2.4 per cent on Monday, buoyed by better-than-expected fourth-quarter results. Analysts expressed optimism about company's future under leership of new CEO Srinivas Pallia.

As of 10:10 am, Wipro's shares were up 1.8 per cent at Rs 460.60, leing gains on Nifty IT index (.NIFTYIT), which rose by 0.3 per cent.

Despite this uptick, Wipro's stock has faced challenges this year, declining by about 4 per cent. In comparison, larger rivals Tata Consultancy Services (TCS.NS) and Infosys (INFY.NS) have recorded gains of 1.4 per cent and a decline of 8.5 per cent respectively.

Wipro's fourth-quarter revenue and profit exceeded estimates, prompting optimism among investors. CEO Srinivas Pallia stressed a growth-oriented strategy, aiming to navigate through challenges such as reduced client spending stemming from high-interest rates, geopolitical risks, and economic uncertainties plaguing $254 billion IT services industry in India.

Analysts are cautiously optimistic about Wipro's future trajectory under Pallia's leership. Ambit Capital noted that Pallia would need to build upon organisational simplifications undertaken during Thierry Delaporte's tenure and enhance deal wins. Meanwhile, Nirmal Bang Institutional Equities expressed confidence that Pallia could achieve industry-matching or even leing growth within a three-year timeframe.

Earlier in week, Wipro's larger competitors, Infosys and Tata Consultancy Services, reported lower-than-expected fourth-quarter revenue figures.

Following Wipro's results, at least nine analysts revised ir target price downward, according to LSEG data. ditionally, at least 11 analysts downgred stock. median target price for "sell"-rated stock has decreased from Rs 455 rupees on March 22 to Rs 445.

(With Reuters inputs.)