Wipro Share Price could remain bullish as the company board is considering bonus issue. The stock has not performed as some of the biggest companies in the IT sector and we could see rerating for the company if the quarterly results are better than market expectations. Wipro, one of India's leading IT services companies, will consider issuing bonus shares at a board meeting scheduled for October 16-17, 2024. The announcement coincides with the company's Q2 FY25 results, which will be released on October 17. This move follows Wipro's recent performance, where it reported a modest 4.6% year-on-year increase in net profit for Q1 FY25, despite a 3.8% decline in revenue. As Wipro continues to focus on its ai360 strategy and prepares for an AI-driven future, the bonus issue could signal confidence in its growth prospects and commitment to shareholder value.

Bonus Share Issue on the Agenda

Wipro’s board of directors is set to evaluate the possibility of issuing bonus shares at its upcoming meeting on October 16-17, 2024. According to the regulatory filing, this consideration will be in accordance with the Companies Act, 2013, and the Securities and Exchange Board of India (SEBI) regulations. If approved, the bonus share issuance could enhance liquidity in the stock market, making shares more accessible to investors and reinforcing shareholder confidence.

Q2 FY25 Results Announcement

Coinciding with the potential bonus share discussion, Wipro will announce its Q2 FY25 financial results on October 17, 2024. The market is keenly watching these results as the IT giant aims to demonstrate its ability to deliver strong bookings and sustained profitability amid global economic challenges. CEO and MD Srini Pallia expressed optimism about Wipro’s growth trajectory in the second quarter, particularly as the company builds on its AI-focused ai360 strategy.

Wipro’s Q1 FY25 Performance

In Q1 FY25, Wipro posted a year-on-year increase of 4.6% in consolidated net profit, reaching ₹3,003.2 crore. However, the company experienced a 3.8% decline in revenue, which totaled ₹21,963.8 crore. Despite this revenue contraction, Wipro remains confident in its ability to improve profitability and drive growth in the upcoming quarters. The firm’s focus on leveraging emerging technologies such as artificial intelligence (AI) and its ai360 strategy is central to its long-term vision for growth.

Wipro’s Commitment to AI and Future Growth

As Wipro continues to build on its ai360 strategy, which emphasizes artificial intelligence across all business functions, the company is positioning itself for an AI-driven future. CEO Srini Pallia highlighted Wipro’s ongoing efforts to prepare its workforce for this transformation, ensuring that the company remains at the forefront of AI innovation. This commitment to AI is expected to drive future profitability and growth, keeping Wipro competitive in a rapidly evolving digital landscape.

Market Reaction and Stock Performance

Wipro’s stock performance reflects investor confidence, with shares closing at ₹528.95 on Friday, marking a 0.77% increase from the previous day’s close on the Bombay Stock Exchange (BSE). The anticipation of the company’s Q2 results and the potential bonus share issuance has generated positive sentiment in the market. Should the bonus share proposal move forward, it could further bolster investor sentiment and enhance the stock’s liquidity.

Looking Ahead

With the board set to consider issuing bonus shares and Wipro's focus on AI-driven strategies, the company is positioning itself for future growth and innovation. Investors will closely monitor the outcome of the upcoming board meeting and the company’s Q2 FY25 results, as Wipro continues to navigate challenges while remaining committed to delivering value for shareholders and adapting to technological advancements in the industry.