Wipro shares hit new 52-week high after it secures 4-year extension of contract with Marelli- Grow Mudra

Wipro shares hit new 52-week high after it secures 4-year extension of contract with Marelli

27 Nov , 2024 By : Debdeep Gupta

Shares of Wipro gained by a percent to hit a fresh 52-week high of Rs 595 apiece on November 27 after the IT services player secured a four-year contract extension with Italy-based Marelli, a global leader in automotive solutions, valued at $100 million.

The extended partnership aims to drive Marelli’s cloud transformation while enhancing operational efficiency, fostering innovation, and expediting time-to-market for their products and services.

Under the project, Wipro’s FullStride Cloud Services will play a central role in migrating Marelli’s Milan Data Centre and local server rooms to a centralized cloud infrastructure. This strategic move will consolidate operations, enabling Marelli to respond quickly to market dynamics and maintain a competitive edge in the rapidly evolving automotive landscape.

Expressing enthusiasm about the collaboration, Graziella Neuvéglise, Regional Head and Managing Director for Southern Europe at Wipro, and the Executive Sponsor for Marelli said, “We are excited to begin a new chapter in our strategic partnership with our trusted partner, Marelli. Our wide-ranging expertise alongside our deep understanding of their needs means we will deliver a modernization program specifically tailored to their needs."

The project will also involve upgrading employee support services with AI-powered virtual assistants, bolstering security through vulnerability management, and streamlining application maintenance services. These initiatives are designed to foster long-term operational efficiency and reduce the need for costly rework in the future.

On November 26, Wipro shares reached a 52-week high of Rs 590 per share, marking a remarkable rise of over 24 percent year-to-date, significantly outperforming the Nifty 50’s 10 percent gain during the same period.

Despite the stock’s recent rally, broker sentiment on Wipro remains mixed. Out of 41 brokerages covering the stock, 8 maintained a “buy” rating, 24 advocated a “sell” call, and 9 suggested a “hold” rating.