Wipro Shares Down 55% From 2021 Peak, Raising Exit Questions for Long-Term Holders

The Quick Take

• Wipro's share price has fallen 55% from its record high of Rs 369.93 hit on October 14, 2021, delivering negative returns for investors over up to five years.
• The stock's prolonged underperformance tracks broader IT sector weakness, including slower deal ramp-ups and margin pressure from wage inflation.
• Analysts debate whether current levels offer a value entry or whether structural headwinds warrant a portfolio exit.

Wipro's sustained underperformance from its 2021 peak reflects a broader recalibration of IT sector valuations after pandemic-era highs. The stock's 55% drawdown is not unique — peers including Infosys and HCL Technologies also corrected sharply from their Covid-era peaks — but Wipro's execution challenges, including weaker revenue growth relative to Infosys, have amplified the sell-off and narrowed its valuation premium.

For investors still holding the stock, the critical question is whether the current price already discounts near-term headwinds. Wipro trades at a discount to Infosys and TCS on forward price-to-earnings, reflecting lower revenue growth visibility. The company's restructuring under CEO Srinivas Pallia has shown some early signs of deal momentum, but a meaningful re-rating requires sustained large-deal wins and evidence of margin recovery above 17%.

Key forward signals include Wipro's next quarterly earnings, which will show whether deal wins are converting to revenue and whether margins are recovering after the wage cycle impact. The broader sector outlook — particularly demand signals from US BFSI and healthcare verticals — is the macro variable that will determine whether the current price is a floor or a false support ahead of further earnings cuts.

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