Following the departure of Wipro's CEO, traders may find themselves lacking in optimistic outlooks. Wipro has been witnessing a string of high-level departures lately, culminating in the CEO's exit. This trend suggests a lack of stability within the company, potentially indicating discord between stakeholders and management.
Rishad Premji, Azim Premji's son and a major stakeholder in Wipro, appears to be facing challenges in steering the company in the right direction. The frequent turnover of top executives at Wipro is causing concern among investors and market observers. Whether due to overly ambitious goals or ineffective strategies, the company's initiatives seem to be falling short.
Wipro experienced a significant 15% decline in net income in 2023 compared to the previous year, painting a picture of survival rather than prosperity over the past three years.
In a manner reminiscent of the negative market sentiment surrounding Infosys (Infy) shares after Sikka's departure in 2017, Wipro's future prospects seem uncertain. The CEO, a seasoned employee occupying a high-ranking position, may encounter challenges in implementing changes to enhance the company's performance and reputation.
Given these circumstances, it is conceivable that Wipro's stock price could plummet by as much as 20% in the near future. The short-term target for Wipro's share price is anticipated to fall within the range of Rs 390 to Rs 380 from the current 485 level.
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