Wipro stocks hit 52-week low today: Here we decode why

Wipro stocks hit 52-week low today: Here we decode why

Wipro's shares hit a 52-week low of ₹195.10 this morning, down 1.74% from the previous close.

The fall comes after reports that the Bengaluru-based IT giant will lose a $500 million contract with cosmetics major Estee Lauder to rival Accenture.

The stock has been under pressure for some time, having fallen over 30% in the last year against Nifty 50's nearly 11% gain.

YTD performance and market capitalization

In the year-to-date, Wipro has lost nearly 27%, making it one of the biggest losers among large-cap IT peers.

The company's shares traded at ₹196.14 as of 12:17pm with a trading volume of 83.78 lakh shares and a traded value of ₹163.98 crore.

The company's market capitalization stands at around ₹2.05 lakh crore.

Loss of Estee Lauder contract a blow for Wipro

The loss of the Estee Lauder contract is a competitive blow for Wipro as CEO Srini Pallia pushes efficiency-led large deals. Accenture winning the mandate highlights the growing competition among global IT services firms for high-value enterprise accounts in consumer and beauty segments.

Potential $100M annual revenue hit for Wipro

Wipro will lose up to $100 million annually as Estee Lauder shifts some of its IT work to Accenture.

The bulk of the work awarded to Accenture was part of a February 2021 deal won by Wipro.

If the company loses this account completely, it will lose $100 million from its topline or almost 1% of revenue.

This comes as the company faces a third consecutive year of revenue decline.