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5076

Wipro BSE:507685 Stock Report

Last Price

₹438.40

Market Cap

₹2.4t

7D

0.7%

1Y

-27.6%

Updated

11 Aug, 2022

Data

Company Financials +
507685 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance2/6
Financial Health6/6
Dividends4/6

507685 Stock Overview

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

Wipro Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Wipro
Historical stock prices
Current Share Price₹438.40
52 Week High₹739.80
52 Week Low₹391.00
Beta0.77
1 Month Change7.18%
3 Month Change-6.44%
1 Year Change-27.64%
3 Year Change74.56%
5 Year Change102.40%
Change since IPO27,734.99%

Recent News & Updates

Shareholder Returns

507685IN ITIN Market
7D0.7%1.4%1.1%
1Y-27.6%-5.6%8.5%

Return vs Industry: 507685 underperformed the Indian IT industry which returned -6.1% over the past year.

Return vs Market: 507685 underperformed the Indian Market which returned 8.7% over the past year.

Price Volatility

Is 507685's price volatile compared to industry and market?
507685 volatility
507685 Average Weekly Movement4.3%
IT Industry Average Movement7.0%
Market Average Movement6.4%
10% most volatile stocks in IN Market9.1%
10% least volatile stocks in IN Market4.2%

Stable Share Price: 507685 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 507685's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1945258,574Thierry Delaportehttps://www.wipro.com

Wipro Limited operates as information technology (IT), consulting, and business process services company worldwide. It operates through three segments: IT Services, IT Products, and India State Run Enterprise Services (ISRE). The IT Services segment offers IT and IT-enabled services, including digital strategy advisory, customer-centric design, technology and IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud and infrastructure, business process, cloud, mobility and analytics, research and development, and hardware and software design services to enterprises.

Wipro Fundamentals Summary

How do Wipro's earnings and revenue compare to its market cap?
507685 fundamental statistics
Market Cap₹2.40t
Earnings (TTM)₹115.51b
Revenue (TTM)₹823.70b

20.8x

P/E Ratio

2.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
507685 income statement (TTM)
Revenue₹823.70b
Cost of Revenue₹583.91b
Gross Profit₹239.79b
Other Expenses₹124.29b
Earnings₹115.51b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)21.12
Gross Margin29.11%
Net Profit Margin14.02%
Debt/Equity Ratio25.3%

How did 507685 perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

28%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is 507685 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 507685?

Other financial metrics that can be useful for relative valuation.

507685 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.8x
Enterprise Value/EBITDA14.6x
PEG Ratio1.8x

Price to Earnings Ratio vs Peers

How does 507685's PE Ratio compare to its peers?

507685 PE Ratio vs Peers
The above table shows the PE ratio for 507685 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average25.3x
HCLTECH HCL Technologies
18.4x10.8%₹2.6t
TECHM Tech Mahindra
17.7x12.2%₹946.5b
INFY Infosys
29.2x13.2%₹6.8t
LTI Larsen & Toubro Infotech
36x12.4%₹876.9b
507685 Wipro
20.8x11.5%₹2.4t

Price-To-Earnings vs Peers: 507685 is good value based on its Price-To-Earnings Ratio (20.8x) compared to the peer average (25.3x).


Price to Earnings Ratio vs Industry

How does 507685's PE Ratio compare vs other companies in the IN IT Industry?

Price-To-Earnings vs Industry: 507685 is good value based on its Price-To-Earnings Ratio (20.8x) compared to the Indian IT industry average (28x)


Price to Earnings Ratio vs Fair Ratio

What is 507685's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

507685 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.8x
Fair PE Ratio35.5x

Price-To-Earnings vs Fair Ratio: 507685 is good value based on its Price-To-Earnings Ratio (20.8x) compared to the estimated Fair Price-To-Earnings Ratio (35.5x).


Share Price vs Fair Value

What is the Fair Price of 507685 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 507685 (₹438.4) is trading below our estimate of fair value (₹585.76)

Significantly Below Fair Value: 507685 is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Wipro forecast to perform in the next 1 to 3 years based on estimates from 41 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


11.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 507685's forecast earnings growth (11.5% per year) is above the savings rate (6.8%).

Earnings vs Market: 507685's earnings (11.5% per year) are forecast to grow slower than the Indian market (18.8% per year).

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

Revenue vs Market: 507685's revenue (8.9% per year) is forecast to grow slower than the Indian market (10.8% per year).

High Growth Revenue: 507685's revenue (8.9% 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 (17.9%).


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Past Performance

How has Wipro performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


8.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 507685 has high quality earnings.

Growing Profit Margin: 507685's current net profit margins (14%) are lower than last year (17.8%).


Past Earnings Growth Analysis

Earnings Trend: 507685's earnings have grown by 8.9% per year over the past 5 years.

Accelerating Growth: 507685's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 507685 had negative earnings growth (-0.7%) over the past year, making it difficult to compare to the IT industry average (26.7%).


Return on Equity

High ROE: 507685's Return on Equity (16.8%) is considered low.


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Financial Health

How is Wipro's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: 507685's short term assets (₹585.1B) exceed its short term liabilities (₹300.5B).

Long Term Liabilities: 507685's short term assets (₹585.1B) exceed its long term liabilities (₹115.1B).


Debt to Equity History and Analysis

Debt Level: 507685 has more cash than its total debt.

Reducing Debt: 507685's debt to equity ratio has reduced from 25.6% to 25.3% over the past 5 years.

Debt Coverage: 507685's debt is well covered by operating cash flow (45.4%).

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


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.37%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 507685's dividend (1.37%) is higher than the bottom 25% of dividend payers in the Indian market (0.39%).

High Dividend: 507685's dividend (1.37%) is low compared to the top 25% of dividend payers in the Indian market (1.72%).


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 increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (28.4%), 507685's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (55.9%), 507685's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

5.5yrs

Average management tenure


CEO

Thierry Delaporte (55 yo)

2.08yrs

Tenure

₹798,090,000

Compensation

Mr. Thierry Delaporte serves as Independent Director at Compagnie de Saint-Gobain S.A. since 2022. He serves as Member of Executive Board at Wipro Limited since 2021 and serves as its MD, CEO & Director si...


CEO Compensation Analysis

Compensation vs Market: Thierry's total compensation ($USD10.10M) is above average for companies of similar size in the Indian market ($USD1.34M).

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


Leadership Team

Experienced Management: 507685's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: 507685's board of directors are considered experienced (6.3 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 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
  • Implied Market Cap: ₹2.398t
  • Shares outstanding: 5.47b
  • Website: https://www.wipro.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/11 00:00
End of Day Share Price2022/08/11 00:00
Earnings2022/06/30
Annual Earnings2022/03/31


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.