Wipro shares see 9-day rally: Here we decode why
What's the story
Wipro's share price continued its upward trend today, marking the ninth consecutive session of gains. The IT stock has jumped over 11% during this period, and is now trading at ₹207.08. The rally is largely attributed to investor interest in the company's ₹15,000 crore share buyback program. On April 16, Wipro's board approved a proposal to repurchase up to 60 crore equity shares through a 'tender offer.'
Buyback specifics
Buyback price set at ₹250 per share
The share buyback price for Wipro has been set at ₹250 per share, nearly 21% higher than Monday's closing price. The record date for the buyback is June 5, determining which shareholders are eligible. All shareholders holding Wipro shares as of this date will be eligible for the offer. This is Wipro's second share buyback after a ₹12,000 crore repurchase in June 2023.
Market analysis
Stock performance in different timeframes
Wipro's share price has gained 4% in one month but is down 23% on a year-to-date (YTD) basis. The IT stock has fallen over 17% in a year and 11% in two years. Over last three years, shares rose just 3%, while they have fallen over 21% in five years. Anshul Jain of Lakshmishree Investments noted that Wipro's share price is forming a double bottom pattern on daily charts, with potential for further gains if it breaks above ₹220 zone.
Financial performance
Q4 results and FY27 revenue guidance
Wipro has also released its Q4 results. The company posted a net profit of ₹3,502 crore for FY26's fourth quarter, up 12.27% from ₹3,119 crore in December quarter. However, Wipro expects a weak start to FY27 with April-June revenue guidance of $2.6-2.65 billion indicating a sequential decline of up to 2% or flat growth at best, due to delays in client engagement ramp-up and slower growth from an existing banking client.