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Wipro: Turning A New Chapter In The Growth Story With Capco

Apr. 08, 2021 5:36 PM ETWipro Limited (WIT)4 Comments


  • Wipro announces the acquisition of Capco for $1.45 billion.
  • The deal makes sound strategic rationale, but the price paid seems expensive relative to Capco's growth profile.
  • In addition to the added risks involved with the integration, Wipro will also see near-term EPS dilution, which could weigh on the shares.
  • I like the steps taken by the new management, but remain neutral at current levels.

Wipro corporation office facade in Silicon Valley
Photo by Michael Vi/iStock Editorial via Getty Images

Wipro (NYSE:WIT), a major India-listed IT services company with main businesses across financial services, retail, and healthcare, boldly opened a new chapter in its growth story with the acquisition

Data by YCharts

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Analyst with a keen interest in the global markets, always sifting through company filings in search of compelling opportunities. Approach is heavily centered on the notion that one needs to be non-consensus right in making investment decisions. A keen follower of value investing legends such as Peter Cundill, Seth Klarman, and more recently, Rupal Bhansali.

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