An Indian Stock That’s Blasting Off
By Paul Goodwin, Chief Analyst, Cabot China & Emerging Markets Report
February 10, 2015
Originally from Cabot Wealth Advisory
Wipro (WIT) was originally founded in 1945 as Western Indian Vegetable Products Limited. Then, in 1981, the company dipped its toe into the burgeoning tech movement and never looked back. Since then, WIT has become a tech giant in India, having played a significant role in the global tech outsourcing boom that swept Western business eight to ten years ago.
Wipro is a global IT consulting and outsourcing company with over 150,000 employees on six continents. Any company that has a need for insight into business practices, analytics, applications, Cloud computing, EcoEnergy or just about any other aspect of modern business, can find help from Wipro.
The company has been a model of slow, steady growth, with revenue increasing by double digits in three of the last five quarters and earnings up 23% or more in three of those same five quarters.
Investors see Wipro as a company that’s perfectly positioned to become a huge part of India’s developing information infrastructure as the pro-business climate there builds the pressure for growth.
WIT has run quickly from 11 on January 15 to 13.5 in recent trading. This move builds on a base that dates back to the stock’s correction in April 2014. Support at 11 has been strong for many months, and the stock’s blastoff is a sign that investors are starting to get their bets down on the strong economic future of India.