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Business News/ Markets / Stock Markets/  Wipro share price in focus as CEO Thierry Delaporte resigns; Here’s how the stock is expected to open today?
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Wipro share price in focus as CEO Thierry Delaporte resigns; Here’s how the stock is expected to open today?

Stock market analysts believe that Wipro share price is likely to react positively to the news of the appointment of Srinivas Pallia as the new CEO and MD.

Wipro share price has risen around 31% in the last one year. During Delaporte's tenure, Wipto stock has yielded returns exceeding 121% over the past 14 quarters. (Image: Reuters)Premium
Wipro share price has risen around 31% in the last one year. During Delaporte's tenure, Wipto stock has yielded returns exceeding 121% over the past 14 quarters. (Image: Reuters)

Wipro share price will be in focus on Monday after the company announced that its CEO and MD Thierry Delaporte resigned from his position on April 6 and Srinivas Pallia will succeed him as the IT giant's new MD and CEO.

Wipro shares ended on Friday 0.49% lower at 485 apiece on the National Stock Exchange (NSE). 

Stock market analysts believe that Wipro share price is likely to react positively to the news of the appointment of Srinivas Pallia as the new CEO and MD.

“The market is likely to react positively to the appointment of Srinivas Pallia, a veteran Wipro leader with extensive industry knowledge, as the new CEO. We can expect a move towards 525 levels in the coming days," Santosh Meena, Head of Research, Swastika Investmart Ltd. told Livemint.

He further said that the stock is likely to gain and move to 525 levels in the upcoming days.

Read here: Wipro MD Thierry Delaporte resigns, Srinivas Pallia to succeed as CEO

Dipeshkumar Mehta, Senior Research Analyst at Emkay Global Financial Services believes the appointment of Srini, a Wipro veteran, will confirm a smooth transition and sustain current growth strategies with only some tweaking to ensure better execution. 

“Srini will find him in action from day 1 as the company is facing its own challenges in addition to broader industry headwinds like muted demand, weak discretionary spending, Gen AI disruptions, uncertain macros, and uncertainties linked with election year in key markets. We retain our estimates and await more clarity on leadership transition and any tweaking in growth strategies," Mehta said.

Emkay Global maintained its ‘Add’ rating on Wipro stock with a target price of 500 per share, at 19x its Mar-26E EPS.

The tech major further informed in a regulatory filing to the stock exchanges that Delaporte's term as CEO, originally scheduled to conclude in July 2025, was unexpectedly shortened when he resigned in the late hours of Saturday.

“The Board of Directors noted the resignation of Mr. Thierry Delaporte with effect from April 6, 2024. He will be relieved from the employment of the Company with effect from the close of business hours on May 31, 2024," said Wipro.

Wipro's stock price growth has lagged its peers in recent years, raising concerns several senior leaders exited during Thierry Delaporte's tenure as CEO.

Also Read: Wipro's stock price rose 121% during Thierry Delaporte's tenure, revenue up 47% in last 14 quarters

Under his tenure since July 2020, the Wipro stock price has surged by 121.43%. The shares of the fourth-largest technology company have risen around 31% in the last one year.

During Delaporte's tenure, the stock has yielded returns exceeding 121% over the past 14 quarters.

Regarding Wipro's financials, the technology giant witnessed a substantial 47% surge in revenue from July 1, 2020, through the third quarter of fiscal 2023-24 (Q3FY24). Additionally, under Delaporte's leadership as Wipro CEO, the net profit also experienced a commendable increase of 5.5%.

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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 07 Apr 2024, 04:56 PM IST
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