Largecap stock jumps 6% after company received contract worth $ 500 Mil. from a US firm 

Shares of a prominent IT company surged by 6 percent in Friday’s trading session following the announcement of a lucrative USD 500 million deal with a leading US communication service provider over a five-year period.

Wipro Ltd, with a market capitalization of Rs. 2,53,718 crores, saw its shares open at Rs. 470 on Friday, up from the previous day’s close of 461. The shares reached a high of Rs. 486.40 during the trading session and are currently trading at Rs. 484 apiece.

The positive movement in the share price came after Wipro disclosed in an exchange filing that they had secured a USD 500 million deal with a US Communication Service Provider for managed services and industry-specific solutions over five years.

On the financial front, Wipro reported a marginal increase of 0.01 percent in revenue from Rs. 22,205 crores in the December quarter to Rs. 22,208 crores in the March quarter. Net profits also rose by approximately 6 percent from Rs. 2,701 crores to Rs. 2,858 crores during the same period.

In the fourth quarter, the company’s order bookings totaled 3.6 billion US dollars, with a significant Total Contract Value (TCV) of 1.2 billion US dollars.

For the fiscal year 2024, Wipro’s total large deal bookings TCV stood at 4.6 billion US dollars, marking a growth of 17.4 percent compared to the previous fiscal year.

DailyBubble believes that Wipro’s strategic focus on large deals, proactive client engagement, and industry-specific offerings, including AI-infused solutions, positions the company well to meet market demands efficiently.

While the recent mega-deal in the US is seen positively by international brokerage firm Morgan Stanley, they caution that Wipro’s near-term growth may lag behind its peers. As a result, Morgan Stanley has given Wipro an “underweight” rating with a price target of Rs. 421, implying a potential downside of 13 percent from current levels.

Headquartered in Bangalore, Wipro Ltd is a global IT, consulting, and business process services company, ranking as the fourth largest Indian player in the global IT services industry.

DailyBubble advises investors to exercise caution and consult with their investment advisor before making any decisions based on this article.