BSE:507685

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

₹3.2t

Last Updated

2021/08/01 12:05 UTC

Data Sources

Company Financials +

Executive Summary

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


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 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.


Market Performance


7 Day Return

-2.1%

507685

0.4%

IN IT

0.2%

IN Market


1 Year Return

109.1%

507685

60.5%

IN IT

54.1%

IN Market

Return vs Industry: 507685 exceeded the Indian IT industry which returned 60.5% over the past year.

Return vs Market: 507685 exceeded the Indian Market which returned 54.1% over the past year.


Shareholder returns

507685IndustryMarket
7 Day-2.1%0.4%0.2%
30 Day8.9%1.7%1.7%
90 Day20.3%14.4%12.0%
1 Year109.5%109.1%63.3%60.5%56.2%54.1%
3 Year183.8%181.2%109.7%97.2%37.3%30.3%
5 Year192.0%187.1%197.8%170.0%81.9%66.7%

Long-Term 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?

28.19x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 507685 (₹586.6) is trading above our estimate of fair value (₹368.63)

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


Price To Earnings Ratio

PE vs Industry: 507685 is good value based on its PE Ratio (28.2x) compared to the Indian IT industry average (32.5x).

PE vs Market: 507685 is poor value based on its PE Ratio (28.2x) compared to the Indian market (23.5x).


Price to Earnings Growth Ratio

PEG Ratio: 507685 is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: 507685 is overvalued based on its PB Ratio (5.4x) compared to the IN IT industry average (2.1x).


Future Growth

How is Wipro forecast to perform in the next 1 to 3 years based on estimates from 31 analysts?

9.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 507685's forecast earnings growth (9.8% per year) is above the savings rate (6.8%).

Earnings vs Market: 507685's earnings (9.8% per year) are forecast to grow slower than the Indian market (20.5% per year).

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

Revenue vs Market: 507685's revenue (9.7% per year) is forecast to grow slower than the Indian market (12.3% per year).

High Growth Revenue: 507685's revenue (9.7% 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 (19.9%).


Past Performance

How has Wipro performed over the past 5 years?

5.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 507685 has high quality earnings.

Growing Profit Margin: 507685's current net profit margins (17.8%) are higher than last year (15.9%).


Past Earnings Growth Analysis

Earnings Trend: 507685's earnings have grown by 5.6% per year over the past 5 years.

Accelerating Growth: 507685's earnings growth over the past year (19.7%) exceeds its 5-year average (5.6% per year).

Earnings vs Industry: 507685 earnings growth over the past year (19.7%) exceeded the IT industry 19.5%.


Return on Equity

High ROE: 507685's Return on Equity (19.8%) is considered low.


Financial Health

How is Wipro's financial position?


Financial Position Analysis

Short Term Liabilities: 507685's short term assets (₹508.4B) exceed its short term liabilities (₹230.5B).

Long Term Liabilities: 507685's short term assets (₹508.4B) exceed its long term liabilities (₹110.1B).


Debt to Equity History and Analysis

Debt Level: 507685's debt to equity ratio (19.6%) is considered satisfactory.

Reducing Debt: 507685's debt to equity ratio has reduced from 24.4% to 19.6% over the past 5 years.

Debt Coverage: 507685's debt is well covered by operating cash flow (120.6%).

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


Balance Sheet


Dividend

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

0.17%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 507685's dividend (0.17%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.34%).

High Dividend: 507685's dividend (0.17%) is low compared to the top 25% of dividend payers in the Indian market (1.41%).


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 (4.8%), 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 (22% payout ratio).


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Thierry Delaporte (54 yo)

1

Tenure

₹668,069,540

Compensation

Mr. Thierry Delaporte serves as Member of Executive Board at Wipro Limited since 2021 and serves as its MD, CEO & Director since July 6, 2020. He served as Intelligent Industry Executive at Capgemini SE si...


CEO Compensation Analysis

Compensation vs Market: Thierry's total compensation ($USD8.99M) is above average for companies of similar size in the Indian market ($USD1.27M).

Compensation vs Earnings: Insufficient data to compare Thierry's compensation with company performance.


Leadership Team

Experienced Management: 507685's management team is considered experienced (3.4 years average tenure).


Board Members

Experienced Board: 507685's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


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: ₹3.203t
  • Shares outstanding: 5.46b
  • Website: https://www.wipro.com

Number of Employees


Location

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

Listings


Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/01 12:05
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.