Wipro has moved higher by 5% to Rs 577, extending its past two days gain, on back of heavy volumes on the bourses. The stock opened at Rs 558 and touched a low of Rs 554 on the BSE. At 1215 hours, a combined 2.07 million shares changed hands on the counter on the NSE and BSE.
Shares of Wipro, the country’s third largest software services player, has rallied 7% in past three trading sessions as compared to 0.28% fall in Tata Consultancy Services and 1% decline in Infosys.
The BSE IT sector index S&P BSE IT has gained 0.44%, while benchmark S&P BSE Sensex down 0.27% during the same period.
According to analyst, Wipro is among few companies which have levers to improve margins in the face of the rupee’s appreciation.
Most tier-I companies are functioning with utilisation levels near 80% and might find it difficult to improve further. Wipro has utilisation of 74% and can easily improve it in case of a currency upswing; its onsite revenue mix is 54%, says analyst.
Analyst at Centrum Broking maintains Buy rating on the stock with a new 1-year target price of Rs 640 per share.
Given Wipro’s headroom in utilization, a two-step rerating is possible if growth gap with peers closes over FY15 and margins improve through utilization and internal efficiency improvements, says analyst in a recent report.
Shares of Wipro, the country’s third largest software services player, has rallied 7% in past three trading sessions as compared to 0.28% fall in Tata Consultancy Services and 1% decline in Infosys.
The BSE IT sector index S&P BSE IT has gained 0.44%, while benchmark S&P BSE Sensex down 0.27% during the same period.
According to analyst, Wipro is among few companies which have levers to improve margins in the face of the rupee’s appreciation.
Most tier-I companies are functioning with utilisation levels near 80% and might find it difficult to improve further. Wipro has utilisation of 74% and can easily improve it in case of a currency upswing; its onsite revenue mix is 54%, says analyst.
Analyst at Centrum Broking maintains Buy rating on the stock with a new 1-year target price of Rs 640 per share.
Given Wipro’s headroom in utilization, a two-step rerating is possible if growth gap with peers closes over FY15 and margins improve through utilization and internal efficiency improvements, says analyst in a recent report.