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Wipro surpasses Cognizant in market valuation

Wipro has left Cognizant behind in market capitalization. It stands tall after Accenture, TCS, and Infosys as the fourth most valuable IT services firm in the whole world. This has led to a renewed growth in confidence of the investors in the Bengaluru-based company almost a year after the new CEO Thierry Delaporte was appointed.

There was a growth in Wipro’s ADR from 2.4% to $7.4 a piece on NYSE. This has provided the company with a market cap of $38.1 billion. Cognizant rose to 1.2% at $71.5 in morning trade on the Nasdaq. It also had a market cap of $37.7 billion.

The revenue growth of Cognizant for the past two years was a bit slow. This is a surprising occurrence as the New York-based company had overcome Wipro in terms of revenue a decade ago, and it is still dominating the field. Cognizant had earned a revenue of $16.5 billion during the fiscal year 2020, which was more than double of that of Wipro, whose revenue during the fiscal year was $8.1 billion.

Delaporte has redefined the service lines of Wipro for better focus, which has helped the company to turnaround for the better. The company made its largest deal with German retailer Metro and has made some healthy digital deals. Since Delaporte joined the company, Wipro’s shares have risen 127%.