Wipro: Wipro jumps 5% on big contract, but brokerages unsure
The Wipro company reached the $500 Million from US Communication related company. Already company received project from Nokia employees service desk in the April month. Two Big orders received by Wipro it continue upto 5 years contract.
Wipro Market price has broken Descending channel in upside
Wipro Stock Soars on Big US Contract, But Brokerages Remain Cautious
Wipro shares surged over 5% in early trading on June 6th, fueled by news of a major $500 million contract with a leading US communication service provider over five years.
Positive Short-Term Impact:
The significant deal is a positive sign for Wipro, particularly considering the current environment of cautious spending in the IT sector.
Brokerage Skepticism:
Despite acknowledging the win, some brokerages remain skeptical about Wipro’s near-term prospects.
Morgan Stanley maintains its “underweight” recommendation on Wipro, with a target price below the current market value. They believe Wipro’s growth might lag behind competitors, impacting its valuation.
Investec acknowledges a potential 1% revenue boost from the deal in FY25 but maintains a “sell” call on the stock.
Significance of the Deal:
This marks the first major contract secured under Wipro’s new CEO, Srinivas Pallia, who took over in April 2024.
It’s the second multi-million dollar deal for Wipro since March 2024, following an agreement with Nokia.
The Toll collections in the may month rose to Rs.536 cr, IRB infra is benefitted by Highway toll collections, From June month Toll rates are rising, it is increasing the company net revenue in the next quarter.
IRB INFRASTRUCTURE Market price is moving in box pattern and market has reached resistance area of the pattern
Shares of IRB Infrastructure Developers experienced a notable uptick of almost 4 percent in trading activity on June 7. This surge was triggered by the company’s announcement of a substantial increase in toll collections for the month of May.
The toll collections for May demonstrated a significant year-on-year rise of 30 percent, reaching Rs 536 crore. Amitabh Murarka, Deputy CEO of IRB Infra, emphasized the consistency and strength of growth across all of the company’s managed highway assets in India. He attributed this positive performance to the recent implementation of the annual toll tariff revision on June 3, combined with the encouraging GDP figures. Murarka expressed confidence in the continuation of this favorable trend in toll collections in the forthcoming quarters.
Market sentiment towards the stock has remained strong, fueled by expectations of robust growth prospects amidst the government’s emphasis on capital expenditure (capex).
Additionally, brokerage firm CLSA identified IRB Infra as a key beneficiary of the Modi government’s return to power, anticipating increased infrastructural capex. CLSA’s analysis suggested that the government’s imminent 100-day plan, aimed at expediting initiatives under Modi 3.0, would involve significant orders in the infrastructure and defense sectors. This aligns with broader market expectations of accelerated government spending in these areas.
Garden Reach: Garden Reach Shipbuilders Up 6% on Rs 500 Cr DRDO Bid
The Garden Reach company received the order Rs.500 cr from DRDO Indian Defense company and is under negotiation. The BJP Leading in the election is the Good support this company, Garden Reach company is going to do Vessels manufacturing in the Defense sector.
GARDEN REACH SHIPB Market price has broken Ascending channel in upside
Garden Reach Shipbuilders Stock Surges on DRDO Contract Bid
Shares of Garden Reach Shipbuilders & Engineers (GRSE) jumped significantly on June 7th, driven by news that the company emerged as the lowest bidder for a major contract from the Defence Research and Development Organisation (DRDO).
Key Points:
Contract Potential: GRSE is the frontrunner for a DRDO contract valued around Rs 500 crore to build a research vessel. However, it’s important to note that the contract is still under negotiation and not yet finalized.
Recovering from Election Jitters: The earlier correction was attributed to concerns about a potential change in government policy following a weaker-than-expected showing by the Bharatiya Janata Party (BJP). However, GRSE has since recovered most of those losses, gaining around 16% in the past two trading sessions.
Underlying Factors:
Defense Focus: GRSE is a key player in India’s defense sector and is seen as a major beneficiary of the government’s push for self-reliance in defense equipment manufacturing (indigenisation).
Government Continuity Hopes: Despite a reduced majority for the BJP-led government, analysts believe policy continuity in the defense sector is likely. This expectation of continued support has boosted investor sentiment towards GRSE.
Long-Term Performance: Despite the recent volatility, GRSE’s stock price is still up over 55% year-to-date.
Overall, the news of the potential DRDO contract and hopes for continued government support have fueled a significant rise in GRSE’s share price. However, it’s crucial to remember that the contract is not yet finalized and the broader market environment can still influence the stock’s performance.
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