Wipro
Market Cap
₹1.1t
Last Updated
2020/05/29 12:50 UTC
Data Sources
Company Financials +
Executive Summary
Wipro Limited operates as an information technology (IT), consulting, and business process services (BPS) company worldwide.
Rewards
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
| 507685 | Industry | Market | |
|---|---|---|---|
| 7 Day | 12.5% | 0.002% | 3.8% |
| 30 Day | 17.6% | 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 Year | 3.7%2.7% | 47.5%38.6% | -9.6%-14.4% |
| 5 Year | 5.9%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).
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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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 4.25yrs | ₹3.95m | 0.028% ₹316.1m | |
| President & COO | 4.25yrs | no data | 0.0053% ₹60.7m | |
| President & Chief Human Resources Officer | 4.08yrs | no data | 0.0030% ₹34.4m | |
| President & CFO | 0.33yr | ₹881.21k | 0.0025% ₹28.7m | |
| Chief Technology Officer | no data | no data | 0.00068% ₹7.7m | |
| President of Mkt | 2.58yrs | no data | 0.0037% ₹42.5m | |
| President of Strategic Sales & Geographies | no data | no data | 0.0019% ₹21.4m | |
| Senior Vice President | no data | no data | 0.0029% ₹33.4m | |
| Head of M & A and Senior VP | no data | no data | 0.00023% ₹2.6m | |
| Senior VP & Chief Information Officer | no data | no data | 0.0026% ₹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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, MD & Executive Director | 4.25yrs | ₹3.95m | 0.028% ₹316.1m | |
| Founder Chairman | 0.83yr | ₹262.05k | 4.22% ₹47.9b | |
| Independent Director | 13.83yrs | ₹23.40m | no data | |
| Independent Director | 4.08yrs | ₹18.47m | no data | |
| Lead Independent Director | 0.75yr | ₹7.33m | no data | |
| Independent Director | 4.08yrs | ₹18.47m | no data | |
| Chairman | 0.83yr | ₹987.65k | 0.031% ₹346.4m | |
| Independent Director | 1.33yrs | ₹2.13m | no data | |
| Independent Director | 6.58yrs | ₹7.33m | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 507685 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Jan 1991 |
| WIPRO | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Jan 1991 |
| WIT | NYSE (New York Stock Exchange) | SPON ADR 1 SH | US | USD | Oct 2000 | |
| WIOA | DB (Deutsche Boerse AG) | SPON ADR 1 SH | DE | EUR | Oct 2000 | |
| WIT N | BMV (Bolsa Mexicana de Valores) | SPON ADR 1 SH | MX | MXN | Oct 2000 | |
| WIOA | WBAG (Wiener Boerse AG) | SPON ADR 1 SH | AT | EUR | Oct 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/05/29 12:50 |
| End of Day Share Price | 2020/05/29 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2020/03/31 |
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.