BSE:507685

Stock Analysis Report

Wipro

Market Cap

₹1.5t

Last Updated

2019/11/13 12:37 UTC

Data Sources

Company Financials +

Executive Summary

Wipro Limited operates as an information technology (IT), consulting, and business process services (BPS) company worldwide.

Snowflake

Fundamentals

Solid track record with excellent balance sheet.

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NSEI:HCLTECH

Share Price & News

How has Wipro's share price performed over time and what events caused price changes?

Latest Share Price and Events

Stable Share Price: 507685 has not had significant price volatility in the past 3 months.

Market Performance

7 Day Return

-1.5%

507685

-2.5%

IN IT

-0.6%

IN Market

1 Year Return

3.8%

507685

6.6%

IN IT

5.0%

IN Market

Return vs Industry: 507685 underperformed the Indian IT industry which returned 6.6% over the past year.

Return vs Market: 507685 underperformed the Indian Market which returned 5% over the past year.

Shareholder returns

507685IndustryMarket
7 Day-1.5%-2.5%-0.6%
30 Day3.9%1.5%5.9%
90 Day0.6%-2.9%8.2%
1 Year4.1%3.8%9.6%6.6%7.0%5.0%
3 Year53.4%51.8%82.6%71.8%36.1%29.2%
5 Year24.4%19.2%60.9%45.9%38.6%25.8%

Price Volatility Vs. Market

How volatile is Wipro's share price compared to the market and industry in the last 5 years?

Simply Wall St News

No news available

Valuation

Is Wipro undervalued compared to its fair value and its price relative to the market?

15.25x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: 507685 (₹252.75) is trading above our estimate of fair value (₹139.5)

Significantly Below Fair Value: 507685 is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: 507685 is poor value based on its PE Ratio (15.2x) compared to the IT industry average (10.7x).

PE vs Market: 507685 is poor value based on its PE Ratio (15.2x) compared to the Indian market (13.3x).

Price to Earnings Growth Ratio

PEG Ratio: 507685 is poor value based on its PEG Ratio (3x)

Price to Book Ratio

PB vs Industry: 507685 is overvalued based on its PB Ratio (2.8x) compared to the IN IT industry average (1x).

Next Steps

Future Growth

How is Wipro forecast to perform in the next 1 to 3 years based on estimates from 35 analysts?

5.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 507685's forecast earnings growth (5% per year) is below the savings rate (7.6%).

Earnings vs Market: 507685's earnings (5% per year) are forecast to grow slower than the Indian market (19% per year).

High Growth Earnings: 507685's earnings are forecast to grow, but not significantly.

Revenue vs Market: 507685's revenue (5.3% per year) is forecast to grow slower than the Indian market (11.2% per year).

High Growth Revenue: 507685's revenue (5.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 507685's Return on Equity is forecast to be low in 3 years time (17.3%).

Next Steps

Past Performance

How has Wipro performed over the past 5 years?

0.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 507685 has high quality earnings.

Growing Profit Margin: 507685's current net profit margins (16.6%) are higher than last year (13.8%).

Past Earnings Growth Analysis

Earnings Trend: 507685's earnings have grown by 0.3% per year over the past 5 years.

Accelerating Growth: 507685's earnings growth over the past year (28.2%) exceeds its 5-year average (0.3% per year).

Earnings vs Industry: 507685 earnings growth over the past year (28.2%) exceeded the IT industry 10.3%.

Return on Equity

High ROE: 507685's Return on Equity (19.4%) is considered low.

Return on Assets

Return on Capital Employed

Next Steps

Financial Health

How is Wipro's financial position?

Financial Position Analysis

Short Term Liabilities: 507685's short term assets (₹509.2B) exceeds its short term liabilities (₹212.4B)

Long Term Liabilities: 507685's short term assets (509.2B) exceeds its long term liabilities (53.8B)

Debt to Equity History and Analysis

Debt Level: 507685's debt to equity ratio (18.3%) is considered satisfactory

Reducing Debt: 507685's debt to equity ratio has increased from 14.2% to 18.3% over the past 5 years.

Debt Coverage: 507685's debt is well covered by operating cash flow (132.5%).

Interest Coverage: 507685 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Inventory Level: 507685 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 507685's debt is covered by short term assets (assets are 5.4x debt).

Next Steps

Dividend

What is Wipro's current dividend yield, its reliability and sustainability?

0.30%

Current Dividend Yield

Dividend Yield vs Market

company0.3%marketbottom25%0.6%markettop25%2.4%industryaverage1.6%forecastin3Years2.2%

Current dividend yield vs market & industry

Notable Dividend: 507685's dividend (0.3%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: 507685's dividend (0.3%) is low compared to the top 25% of dividend payers in the Indian market (2.36%).

Stability and Growth of Payments

Stable Dividend: 507685's dividend payments have been volatile in the past 10 years.

Growing Dividend: 507685's dividend payments have fallen over the past 10 years.

Current Payout to Shareholders

Dividend Coverage: Unable to calculate sustainability of dividends as 507685 has not reported any payouts.

Future Payout to Shareholders

Future Dividend Coverage: 507685's dividends in 3 years are forecast to be well covered by earnings (36.6% payout ratio).

Next Steps

Management

What is the CEO of Wipro's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure

CEO

Abid Neemuchwala (52yo)

3.8yrs

Tenure

₹3,950,532

Compensation

Mr. Abidali Z. Neemuchwala, also known as Abid, M.Tech has been Chief Executive Officer and Executive Director of Wipro Ltd. since February 1, 2016 and serves as its Managing Director since July 31, 2019.  ...

CEO Compensation Analysis

Compensation vs Market: Abid's total compensation ($USD3.95M) is above average for companies of similar size in the Indian market ($USD1.14M).

Compensation vs Earnings: Abid's compensation has been consistent with company performance over the past year.

Management Age and Tenure

3.8yrs

Average Tenure

51yo

Average Age

Experienced Management: 507685's management team is considered experienced (3.8 years average tenure).

Board Age and Tenure

3.6yrs

Average Tenure

56yo

Average Age

Experienced Board: 507685's board of directors are considered experienced (3.6 years average tenure).

Insider Trading

Insider Buying: 507685 insiders have sold more shares than they have bought in the past 3 months.

Recent Insider Transactions

Sell₹5,161,00204 Nov 19
Jayanta Dey
EntityIndividual
Shares20,000
Max Price₹258.05
Buy₹4,000,00005 Sep 19
David D'Lima
EntityIndividual
Shares16,000
Max Price₹250.00
Sell₹2,634,66603 Sep 19
Hiral Chandrana
EntityIndividual
Shares10,000
Max Price₹263.47
Sell₹2,337,50022 Aug 19
Raja Ukil
EntityIndividual
Role
Chief Information Officer
Senior VP & Chief Information Officer
Shares9,350
Max Price₹250.00
Buy₹7,265,62921 Aug 19
Prasad Gantasai
EntityIndividual
Shares27,200
Max Price₹267.12
Sell₹7,887,35621 Aug 19
Prasad Gantasai
EntityIndividual
Shares25,900
Max Price₹305.75
Sell₹2,023,57505 Aug 19
Aparna Iyer
EntityIndividual
Shares7,500
Max Price₹269.81
Sell₹3,102,25530 Jul 19
Gaurav Kedia
EntityIndividual
Shares11,922
Max Price₹289.40
Sell₹13,229,72023 Jul 19
Jatin Dalal
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares50,000
Max Price₹264.59
Sell₹19,760,07523 Jul 19
Saurabh Govil
EntityIndividual
Role
Co-President
President & Chief Human Resources Officer
Shares75,000
Max Price₹263.47
Sell₹1,334,80009 Jul 19
Nandini Matiyani
EntityIndividual
Shares4,700
Max Price₹284.00
Sell₹8,206,87514 Jun 19
N Balasubramanian
EntityIndividual
Shares27,538
Max Price₹298.02
Sell₹7,336,95014 Jun 19
Amit Bajoria
EntityIndividual
Shares24,600
Max Price₹298.25
Buy₹8,037,90013 Jun 19
Prasad Gantasai
EntityIndividual
Shares27,000
Max Price₹297.70
Buy₹7,144,80013 Jun 19
Anil Raibagi
EntityIndividual
Role
Senior Key Executive
Head of M & A and Senior VP
Shares24,000
Max Price₹297.70
Buy₹1,905,28013 Jun 19
Sharmila Paranjpe
EntityIndividual
Shares6,400
Max Price₹297.70
Buy₹1,984,76513 Jun 19
Surajit Roy
EntityIndividual
Shares6,667
Max Price₹297.70
Sell₹14,610,65913 Jun 19
Dipak Bohra
EntityIndividual
Shares49,066
Max Price₹297.78
Buy₹3,850,15413 Jun 19
Ashok Philipose
EntityIndividual
Shares12,933
Max Price₹297.70
Buy₹2,421,19413 Jun 19
Vellore Nithin
EntityIndividual
Shares8,133
Max Price₹297.70
Buy₹5,715,84013 Jun 19
Ayaskant Sarangi
EntityIndividual
Shares19,200
Max Price₹297.70
Buy₹7,442,50013 Jun 19
K. Sanjiv
EntityIndividual
Role
Chief Technology Officer
Chief Technology Officer
Shares25,000
Max Price₹297.70
Sell₹7,300,00006 Jun 19
Santhosh Nair
EntityIndividual
Shares25,000
Max Price₹292.00
Sell₹3,435,60303 Jun 19
Viswanathan Ramaswamy
EntityIndividual
Shares12,000
Max Price₹288.02
Sell₹2,006,86303 Jun 19
Ayaskant Sarangi
EntityIndividual
Shares7,015
Max Price₹286.08
Sell₹5,757,99930 May 19
Vijayasimha Alilughatta
EntityIndividual
Shares20,000
Max Price₹287.90
Sell₹14,301,09030 May 19
Santhosh Nair
EntityIndividual
Shares49,644
Max Price₹288.07
Sell₹7,212,49920 May 19
Santhosh Nair
EntityIndividual
Shares25,000
Max Price₹288.50
Sell₹4,478,31913 May 19
Mohammed Khan
EntityIndividual
Shares15,400
Max Price₹290.80
Sell₹5,121,60608 May 19
Mohd Haque
EntityIndividual
Shares16,777
Max Price₹313.38
Sell₹4,422,10729 Apr 19
Saurabh Govil
EntityIndividual
Role
Co-President
President & Chief Human Resources Officer
Shares15,000
Max Price₹294.81
Sell₹1,392,30025 Apr 19
Keyur Maniar
EntityIndividual
Shares4,750
Max Price₹293.12
Sell₹1,502,15425 Apr 19
Vinay Firake
EntityIndividual
Shares5,000
Max Price₹300.43
Sell₹1,134,17925 Apr 19
Keyur Maniar
EntityIndividual
Shares3,910
Max Price₹290.07
Sell₹7,381,25025 Apr 19
Dipak Bohra
EntityIndividual
Shares25,000
Max Price₹295.25
Sell₹4,366,45825 Apr 19
Saurabh Govil
EntityIndividual
Role
Co-President
President & Chief Human Resources Officer
Shares15,000
Max Price₹291.10
Sell₹789,31223 Apr 19
Keyur Maniar
EntityIndividual
Shares2,740
Max Price₹288.07
Sell₹1,345,67423 Apr 19
Amit Bajoria
EntityIndividual
Shares4,666
Max Price₹288.40
Sell₹1,256,06421 Mar 19
Shrishendu Deb
EntityIndividual
Shares4,800
Max Price₹261.68
Sell₹1,045,66621 Mar 19
Mohd Haque
EntityIndividual
Shares4,000
Max Price₹261.42
Sell₹265,00014 Mar 19
Mohd Haque
EntityIndividual
Shares1,000
Max Price₹265.00
Sell₹1,303,97513 Mar 19
Mohd Haque
EntityIndividual
Shares5,000
Max Price₹260.79
Sell₹1,092,42012 Mar 19
Sharada Kumar
EntityIndividual
Shares4,200
Max Price₹260.10
Sell₹6,842,133,16512 Mar 19
Azim Premji Trust
EntityCompany
Shares26,666,667
Max Price₹256.58
Sell₹537,49907 Mar 19
Rajpal Gohar
EntityIndividual
Shares1,980
Max Price₹271.46
Sell₹3,919,54507 Mar 19
Vellore Nithin
EntityIndividual
Shares14,000
Max Price₹279.97
Sell₹5,523,87820 Feb 19
N Balasubramanian
EntityIndividual
Shares20,000
Max Price₹276.19
Sell₹1,132,50019 Feb 19
Vijayasimha Alilughatta
EntityIndividual
Shares4,000
Max Price₹283.12
Sell₹7,202,15618 Feb 19
Anuj Bhalla
EntityIndividual
Shares26,666.67
Max Price₹277.17
Sell₹1,955,62513 Feb 19
Rohit Adlakha
EntityIndividual
Shares6,953.33
Max Price₹281.25
Sell₹11,238,99813 Feb 19
P. Rao
EntityIndividual
Shares40,000
Max Price₹280.97
Sell₹1,877,42213 Feb 19
Rajpal Gohar
EntityIndividual
Shares6,666.67
Max Price₹281.61
Sell₹3,718,99906 Feb 19
Satyaki Banerjee
EntityIndividual
Shares13,333.33
Max Price₹278.92
Sell₹3,929,60905 Feb 19
Vinay Firake
EntityIndividual
Shares13,333.33
Max Price₹294.72
Sell₹1,099,80001 Feb 19
Vijayasimha Alilughatta
EntityIndividual
Shares4,000
Max Price₹274.95
Sell₹1,197,16230 Jan 19
Keyur Maniar
EntityIndividual
Shares4,441.33
Max Price₹269.55
Sell₹1,802,10029 Jan 19
Kiran Desai
EntityIndividual
Shares6,666.67
Max Price₹270.31
Sell₹1,627,20029 Jan 19
Vijayasimha Alilughatta
EntityIndividual
Shares6,000
Max Price₹271.20
Sell₹11,271,74429 Jan 19
K. Sanjiv
EntityIndividual
Role
Chief Technology Officer
Chief Technology Officer
Shares42,666.67
Max Price₹264.18
Sell₹5,279,99928 Jan 19
Sunita Cherian
EntityIndividual
Shares20,000
Max Price₹264.00
Sell₹1,760,00028 Jan 19
Rajpal Gohar
EntityIndividual
Shares6,666.67
Max Price₹264.00
Sell₹2,923,50725 Jan 19
Raja Ukil
EntityIndividual
Role
Chief Information Officer
Senior VP & Chief Information Officer
Shares11,226.67
Max Price₹260.41
Sell₹5,287,92224 Jan 19
Saurabh Govil
EntityIndividual
Role
Co-President
President & Chief Human Resources Officer
Shares20,000
Max Price₹264.40
Sell₹1,760,00023 Jan 19
N. Kishore
EntityIndividual
Shares6,666.67
Max Price₹264.00
Sell₹3,704,63223 Jan 19
Vinay Firake
EntityIndividual
Shares13,333.33
Max Price₹277.85
Sell₹1,710,00021 Jan 19
N. Kishore
EntityIndividual
Shares6,666.67
Max Price₹256.50
Sell₹1,768,73021 Jan 19
Vinay Firake
EntityIndividual
Shares6,666.67
Max Price₹265.31
Sell₹3,299,99912 Dec 18
Sunita Cherian
EntityIndividual
Shares13,333.33
Max Price₹247.50
Sell₹2,931,71912 Dec 18
Ayaskant Sarangi
EntityIndividual
Shares11,845.33
Max Price₹247.50
Sell₹3,295,05812 Dec 18
Saurabh Govil
EntityIndividual
Role
Co-President
President & Chief Human Resources Officer
Shares13,333.33
Max Price₹247.13

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Management Team

  • K. Sanjiv (55yo)

    Chief Technology Officer

    • Tenure: 0yrs

  • Abid Neemuchwala (52yo)

    CEO, MD & Executive Director

    • Tenure: 3.8yrs
    • Compensation: ₹3.95m

  • Milan Rao (48yo)

    President of Mkt

    • Tenure: 2.1yrs

  • Anand Padmanabhan (56yo)

    President of Strategic Sales & Geographies

    • Tenure: 0yrs

  • Bhanu Bhanumurthy (55yo)

    President & COO

    • Tenure: 3.8yrs

  • Saurabh Govil (51yo)

    President & Chief Human Resources Officer

    • Tenure: 3.6yrs

  • Jatin Dalal (44yo)

    Chief Financial Officer

    • Tenure: 4.6yrs
    • Compensation: ₹881.21k

  • Raja Ukil (50yo)

    Senior VP & Chief Information Officer

    • Tenure: 0yrs

  • L. Subramanian (51yo)

    Senior Vice President

    • Tenure: 0yrs

  • Anil Raibagi (49yo)

    Head of M & A and Senior VP

    • Tenure: 0yrs

Board Members

  • Azim Premji (74yo)

    Founder Chairman

    • Tenure: 0.3yrs
    • Compensation: ₹262.05k

  • Bill Owens (79yo)

    Independent Director

    • Tenure: 13.3yrs
    • Compensation: ₹23.40m

  • Patrick Ennis (55yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: ₹18.47m

  • Mahendra Sharma (72yo)

    Lead Independent Director

    • Tenure: 0.3yrs
    • Compensation: ₹7.33m

  • Abid Neemuchwala (52yo)

    CEO, MD & Executive Director

    • Tenure: 3.8yrs
    • Compensation: ₹3.95m

  • Patrick Lucien Dupuis (56yo)

    Independent Director

    • Tenure: 3.6yrs
    • Compensation: ₹18.47m

  • Rishad Azim Premji (42yo)

    Chairman

    • Tenure: 0.3yrs
    • Compensation: ₹987.65k

  • Arundhati Bhattacharya (63yo)

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: ₹2.13m

  • Ireena Vittal (51yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: ₹7.33m

Company Information

Wipro Limited's company bio, employee growth, exchange listings and data sources

Key Information

  • Name: Wipro Limited
  • Ticker: 507685
  • Exchange: BSE
  • Founded: 1945
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹1.458t
  • Shares outstanding: 5.69b
  • Website: https://www.wipro.com

Number of Employees

Location

  • Wipro Limited
  • Doddakannelli
  • Sarjapur Road
  • Bengaluru
  • Karnataka
  • 560035
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
507685BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 1991
WIPRONSEI (National Stock Exchange of India)YesEquity SharesININRJan 1991
WITNYSE (New York Stock Exchange)ADR EACH REP 1 ORD INR2USUSDOct 2000
WIOADB (Deutsche Boerse AG)ADR EACH REP 1 ORD INR2DEEUROct 2000
WIT NBMV (Bolsa Mexicana de Valores)ADR EACH REP 1 ORD INR2MXMXNOct 2000
WIOAWBAG (Wiener Boerse AG)ADR EACH REP 1 ORD INR2ATEUROct 2000

Biography

Wipro Limited operates as an information technology (IT), consulting, and business process services (BPS) company worldwide. It operates in three segments: IT Services, IT Products, and India State Run Ent ...

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 12:37
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.