Morgan Stanley retains 'underweight' call on Wipro amid organisational churn

Wipro shares have risen around 7 percent in 2023.

The Wipro stock will be in focus on December 11 after the IT services company announced the resignation of its chief growth officer (CGO) Stephanie Trautman, the latest in a string of top level exits in the company.

Global brokerage Morgan Stanley stuck to its “underweight” call on Wipro, with a share price target of Rs 370 following Trautman’s resignation.

The senior management exits over the past 12 months were a great cause of concern for investors, Morgan Stanley said. The chief growth officer had a pivotal role in managing the large-deal team. The team’s primary focus was on scouring large deals for the company via market advisers and consulting various different channels.

As the chief growth officer, Trautman used to lead "Wipro’s relationships with hyper-growth partners, provides market intelligence through advisors and analysts, enhances Wipro’s brand awareness and develops sales capabilities,” the IT firm said in a note.

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Trautman's departure follows Jatin Dalal's resignation as the chief financial officer two months ago. The departure of the Wipro veteran and seasoned leader, with 21 years of experience, marked the ninth high-level exit in the calendar year 2023.

On December 8, Wipro closed at Rs 424, higher by 1.37 percent on the NSE. Over the past year, it has seen a lot of volatility, clocking gains of around 7 percent. In comparison, the benchmark Nifty 50 has surged around 15 percent during the period.

Over the past few months, Wipro has started integrating the strategic pursuits team, formerly under the CGO, into strategic market units (SMUs). Doing so, CEO and MD Thierry Delaporte said, would allow Wipro to build on the processes and approaches developed by the CGO and bring this experienced team closer to clients and on-the-ground sales teams.

“This integrated approach will help us uncover new growth opportunities, enhance our speed to market as well as success rate in deal wins,” he said.

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