BSE:507685

Stock Analysis Report

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Executive Summary

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

Rewards

Earnings grew by 7.9% over the past year

Risk Analysis

No risks detected for 507685 from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

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

12.5%

507685

0.002%

IN IT

3.8%

IN Market


1 Year Return

-25.8%

507685

-11.2%

IN IT

-20.9%

IN Market

Return vs Industry: 507685 underperformed the Indian IT industry which returned -9.4% over the past year.

Return vs Market: 507685 underperformed the Indian Market which returned -21.7% over the past year.


Shareholder returns

507685IndustryMarket
7 Day12.5%0.002%3.8%
30 Day17.6%5.3%0.5%
90 Day-3.9%-4.2%-14.8%
1 Year-25.5%-25.8%-8.2%-11.2%-19.3%-20.9%
3 Year3.7%2.7%47.5%38.6%-9.6%-14.4%
5 Year5.9%2.0%50.1%35.9%13.0%2.4%

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?

12.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 507685 (₹212.55) is trading above our estimate of fair value (₹124)

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 (12.8x) compared to the IT industry average (8x).

PE vs Market: 507685 is poor value based on its PE Ratio (12.8x) compared to the Indian market (9.9x).


Price to Earnings Growth Ratio

PEG Ratio: 507685 is poor value based on its PEG Ratio (12.5x)


Price to Book Ratio

PB vs Industry: 507685 is overvalued based on its PB Ratio (2.2x) compared to the IN IT industry average (0.7x).


Next Steps

Future Growth

How is Wipro forecast to perform in the next 1 to 3 years based on estimates from 37 analysts?

1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 507685's forecast earnings growth (1% per year) is below the savings rate (7.2%).

Earnings vs Market: 507685's earnings (1% per year) are forecast to grow slower than the Indian market (16.8% per year).

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

Revenue vs Market: 507685's revenue (2.6% per year) is forecast to grow slower than the Indian market (6.9% per year).

High Growth Revenue: 507685's revenue (2.6% 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 (15.4%).


Next Steps

Past Performance

How has Wipro performed over the past 5 years?

1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 507685 has high quality earnings.

Growing Profit Margin: 507685's current net profit margins (15.9%) are higher than last year (15.4%).


Past Earnings Growth Analysis

Earnings Trend: 507685's earnings have grown by 1.4% per year over the past 5 years.

Accelerating Growth: 507685's earnings growth over the past year (7.9%) exceeds its 5-year average (1.4% per year).

Earnings vs Industry: 507685 earnings growth over the past year (7.9%) exceeded the IT industry 5.4%.


Return on Equity

High ROE: 507685's Return on Equity (17.5%) is considered low.


Next Steps

Financial Health

How is Wipro's financial position?


Financial Position Analysis

Short Term Liabilities: 507685's short term assets (₹519.9B) exceed its short term liabilities (₹216.4B).

Long Term Liabilities: 507685's short term assets (₹519.9B) exceed its long term liabilities (₹41.3B).


Debt to Equity History and Analysis

Debt Level: 507685's debt to equity ratio (14%) is considered satisfactory.

Reducing Debt: 507685's debt to equity ratio has reduced from 18.1% to 14% over the past 5 years.

Debt Coverage: 507685's debt is well covered by operating cash flow (129%).

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


Balance Sheet


Next Steps

Dividend

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

0.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 507685's dividend (0.47%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.85%).

High Dividend: 507685's dividend (0.47%) is low compared to the top 25% of dividend payers in the Indian market (3.59%).


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: With its low payout ratio (6%), 507685's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 507685's dividends in 3 years are forecast to be well covered by earnings (33% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Abid Neemuchwala (52yo)

4.25yrs

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 ($USD3.95M) is above average for companies of similar size in the Indian market ($USD1.08M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Abidali Neemuchwala
CEO, MD & Executive Director4.25yrs₹3.95m0.028% 316.1m
B. Bhanumurthy
President & COO4.25yrsno data0.0053% 60.7m
Saurabh Govil
President & Chief Human Resources Officer4.08yrsno data0.0030% 34.4m
Jatin Dalal
President & CFO0.33yr₹881.21k0.0025% 28.7m
K. Sanjiv
Chief Technology Officerno datano data0.00068% 7.7m
Milan Rao
President of Mkt2.58yrsno data0.0037% 42.5m
Anand Padmanabhan
President of Strategic Sales & Geographiesno datano data0.0019% 21.4m
L. Subramanian
Senior Vice Presidentno datano data0.0029% 33.4m
Anil Raibagi
Head of M & A and Senior VPno datano data0.00023% 2.6m
Raja Ukil
Senior VP & Chief Information Officerno datano data0.0026% 29.1m

4.1yrs

Average Tenure

51yo

Average Age

Experienced Management: 507685's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Abidali Neemuchwala
CEO, MD & Executive Director4.25yrs₹3.95m0.028% 316.1m
Azim Premji
Founder Chairman0.83yr₹262.05k4.22% 47.9b
William Owens
Independent Director13.83yrs₹23.40mno data
Patrick Ennis
Independent Director4.08yrs₹18.47mno data
Mahendra Sharma
Lead Independent Director0.75yr₹7.33mno data
Patrick Lucien Dupuis
Independent Director4.08yrs₹18.47mno data
Rishad Azim Premji
Chairman0.83yr₹987.65k0.031% 346.4m
Arundhati Bhattacharya
Independent Director1.33yrs₹2.13mno data
Ireena Vittal
Independent Director6.58yrs₹7.33mno data

4.1yrs

Average Tenure

56yo

Average Age

Experienced Board: 507685's board of directors are considered experienced (4.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 507685 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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: ₹1.134t
  • 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)SPON ADR 1 SHUSUSDOct 2000
WIOADB (Deutsche Boerse AG)SPON ADR 1 SHDEEUROct 2000
WIT NBMV (Bolsa Mexicana de Valores)SPON ADR 1 SHMXMXNOct 2000
WIOAWBAG (Wiener Boerse AG)SPON ADR 1 SHATEUROct 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 Enterprise (ISRE). The company’s IT services segment offers IT and IT-enabled services, including digital strategy advisory, customer-centric design, technology consulting, IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, infrastructure, analytics, business process, research and development, and hardware and software design services to enterprises. It serves customers in various industry verticals, such as banking, financial services, and insurance; health business; consumer business; energy, natural resources, and utilities; manufacturing; technology; and communications. The company’s IT Products segment provides a range of third-party IT products comprising enterprise platforms, networking solutions, software and data storage products, contact center infrastructure, enterprise security, IT optimization technologies, video solutions, and end-user computing solutions. It serves enterprises in various industries primarily in the India market, which comprise the government, defense, IT and IT-enabled services, telecommunications, manufacturing, utilities, education, and financial services sectors. Its ISRE segment offers IT services to entities and/or departments owned or controlled by the Government of India and/or various Indian State Governments. The company has a research collaboration agreement with Tel Aviv University for core and applied research in image and text analytics; a collaboration with Indian Institute of Science to develop solutions for autonomous systems, robotics, and 5G; a strategic partnership with Google for cloud adoption and digital transformation; and a strategic alliance with Smart Energy Water. Wipro Limited was founded in 1945 and is based in Bengaluru, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/29 12:50
End of Day Share Price2020/05/29 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.