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Wipro

NSEI:WIPRO
Snowflake Description

Excellent balance sheet with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WIPRO
NSEI
₹1,710B
Market Cap
  1. Home
  2. IN
  3. Software
Company description

Wipro Limited operates as an information technology (IT), consulting, and business process services (BPS) company worldwide. The last earnings update was 6 days ago. More info.


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WIPRO Share Price and Events
7 Day Returns
0.2%
NSEI:WIPRO
2.6%
IN IT
0.8%
IN Market
1 Year Returns
29.3%
NSEI:WIPRO
19.3%
IN IT
-0.7%
IN Market
WIPRO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Wipro (WIPRO) 0.2% 10.6% 10.9% 29.3% 39.1% 45.1%
IN IT 2.6% 4.6% 8.5% 19.3% 49.1% 80.2%
IN Market 0.8% 2.8% 5.9% -0.7% 41.2% 72.5%
1 Year Return vs Industry and Market
  • WIPRO outperformed the IT industry which returned 19.3% over the past year.
  • WIPRO outperformed the Market in India which returned -0.7% over the past year.
Price Volatility
WIPRO
Industry
5yr Volatility vs Market

Value

 Is Wipro undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Wipro to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Wipro.

NSEI:WIPRO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 36 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 16.7%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:WIPRO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.054 (1 + (1- 35%) (5.82%))
1.063
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.06
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.063 * 8.6%)
16.69%

Discounted Cash Flow Calculation for NSEI:WIPRO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Wipro is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:WIPRO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 16.69%)
2019 71,948.59 Analyst x17 61,656.17
2020 80,912.20 Analyst x20 59,418.62
2021 86,884.95 Analyst x25 54,677.34
2022 90,296.39 Analyst x6 48,695.35
2023 94,777.20 Est @ 4.96% 43,800.12
2024 100,216.12 Est @ 5.74% 39,688.37
2025 106,511.75 Est @ 6.28% 36,147.44
2026 113,608.02 Est @ 6.66% 33,040.24
2027 121,479.58 Est @ 6.93% 30,275.54
2028 130,122.97 Est @ 7.12% 27,790.53
Present value of next 10 years cash flows ₹435,189.72
NSEI:WIPRO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹130,122.97 × (1 + 7.55%) ÷ (16.69% – 7.55%)
₹1,530,608.11
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹1,530,608.11 ÷ (1 + 16.69%)10
₹326,893.91
NSEI:WIPRO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹435,189.72 + ₹326,893.91
₹762,083.64
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹762,083.64 / 6,005.76
₹126.89
NSEI:WIPRO Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹126.89
Current discount Discount to share price of ₹288.25
= -1 x (₹288.25 - ₹126.89) / ₹126.89
-127.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Wipro is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Wipro's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Wipro's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:WIPRO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in INR ₹14.99
BSE:507685 Share Price ** BSE (2019-04-22) in INR ₹288.25
India IT Industry PE Ratio Median Figure of 84 Publicly-Listed IT Companies 16.19x
India Market PE Ratio Median Figure of 2,738 Publicly-Listed Companies 16.33x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Wipro.

NSEI:WIPRO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:507685 Share Price ÷ EPS (both in INR)

= 288.25 ÷ 14.99

19.23x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wipro is overvalued based on earnings compared to the IN IT industry average.
  • Wipro is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Wipro's expected growth come at a high price?
Raw Data
NSEI:WIPRO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.23x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 36 Analysts
7.1%per year
India IT Industry PEG Ratio Median Figure of 21 Publicly-Listed IT Companies 1.32x
India Market PEG Ratio Median Figure of 585 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

NSEI:WIPRO PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.23x ÷ 7.1%

2.69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wipro is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Wipro's assets?
Raw Data
NSEI:WIPRO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in INR ₹94.48
BSE:507685 Share Price * BSE (2019-04-22) in INR ₹288.25
India IT Industry PB Ratio Median Figure of 108 Publicly-Listed IT Companies 1.36x
India Market PB Ratio Median Figure of 3,628 Publicly-Listed Companies 1.11x
NSEI:WIPRO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:507685 Share Price ÷ Book Value per Share (both in INR)

= 288.25 ÷ 94.48

3.05x

* Primary Listing of Wipro.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wipro is overvalued based on assets compared to the IN IT industry average.
X
Value checks
We assess Wipro's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Wipro has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Wipro expected to perform in the next 1 to 3 years based on estimates from 36 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Wipro expected to grow at an attractive rate?
  • Wipro's earnings growth is positive but not above the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Wipro's earnings growth is positive but not above the India market average.
  • Wipro's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:WIPRO Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:WIPRO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 36 Analysts 7.1%
NSEI:WIPRO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 36 Analysts 5.9%
India IT Industry Earnings Growth Rate Market Cap Weighted Average 9.5%
India IT Industry Revenue Growth Rate Market Cap Weighted Average 9.4%
India Market Earnings Growth Rate Market Cap Weighted Average 18.5%
India Market Revenue Growth Rate Market Cap Weighted Average 11.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:WIPRO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 weeks ago) See Below
Future Estimates Average of up to 36 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:WIPRO Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 699,926 120,151 111,856 10
2021-03-31 658,676 111,482 104,521 34
2020-03-31 618,886 102,358 97,831 32
NSEI:WIPRO Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-03-31 585,845 90,031
2018-12-31 573,468 90,559 83,226
2018-09-30 559,563 84,730 77,494
2018-06-30 548,387 83,486 80,522
2018-03-31 544,871 84,233 80,081
2017-12-31 547,060 102,311 84,664
2017-09-30 547,248 98,869 86,387
2017-06-30 550,671 107,894 85,142
2017-03-31 550,402 92,773 84,895
2016-12-31 546,851 86,182 84,664
2016-09-30 538,578 82,054 85,939
2016-06-30 526,056 71,314 87,676

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Wipro's earnings are expected to grow by 7.1% yearly, however this is not considered high growth (20% yearly).
  • Wipro's revenue is expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:WIPRO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 weeks ago) See Below
Future Estimates Average of up to 36 Analyst Estimates (S&P Global) See Below

All data from Wipro Company Filings, last reported 3 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:WIPRO Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 19.53 22.00 16.70 7.00
2021-03-31 17.84 19.20 15.40 33.00
2020-03-31 16.53 17.59 15.00 32.00
NSEI:WIPRO Past Financials Data
Date (Data in INR Millions) EPS *
2019-03-31 14.99
2018-12-31 13.85
2018-09-30 12.69
2018-06-30 12.95
2018-03-31 12.64
2017-12-31 13.14
2017-09-30 13.39
2017-06-30 13.19
2017-03-31 13.11
2016-12-31 13.02
2016-09-30 13.16
2016-06-30 13.38

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Wipro is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Wipro's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Wipro has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Wipro performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Wipro's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Wipro's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Wipro's 1-year earnings growth exceeds its 5-year average (12.4% vs -0.3%)
  • Wipro's earnings growth has not exceeded the IN IT industry average in the past year (12.4% vs 24.5%).
Earnings and Revenue History
Wipro's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Wipro Company Filings, last reported 3 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:WIPRO Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 585,845.00 90,031.00 80,461.00
2018-12-31 573,468.00 83,226.00 83,219.00
2018-09-30 559,563.00 77,494.00 85,416.00
2018-06-30 548,387.00 80,522.00 77,858.00
2018-03-31 544,871.00 80,081.00 75,847.00
2017-12-31 547,060.00 84,664.00 71,473.00
2017-09-30 547,248.00 86,387.00 68,245.00
2017-06-30 550,671.00 85,142.00 69,452.00
2017-03-31 550,402.00 84,895.00 69,782.00
2016-12-31 546,851.00 84,664.00 70,514.00
2016-09-30 538,578.00 85,939.00 68,090.00
2016-06-30 526,056.00 87,676.00 65,526.00
2016-03-31 512,440.00 89,075.00 62,723.00
2015-12-31 497,534.00 89,415.00 60,493.00
2015-09-30 488,858.00 88,974.00 59,030.00
2015-06-30 480,561.00 87,413.00 57,668.00
2015-03-31 469,543.00 86,528.00 56,341.00
2014-12-31 464,581.00 86,072.00 55,460.00
2014-09-30 457,365.00 84,291.00 55,045.00
2014-06-30 448,281.00 82,765.00 52,669.00
2014-03-31 434,190.00 77,967.00 52,786.00
2013-12-31 412,467.00 71,467.00 50,375.00
2013-09-30 394,889.00 67,211.00 48,696.00
2013-06-30 379,326.00 62,930.00 46,465.00
2013-03-31 374,256.00 61,347.00 46,245.00
2012-12-31 322,758.00 56,973.00 35,829.00
2012-09-30 326,110.00 55,645.00 37,003.00
2012-06-30 323,689.00 53,613.00 37,031.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Wipro has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Wipro used its assets more efficiently than the IN IT industry average last year based on Return on Assets.
  • Wipro's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Wipro's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Wipro has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Wipro's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Wipro's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Wipro is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Wipro's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Wipro's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 5.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Wipro Company Filings, last reported 3 weeks ago.

NSEI:WIPRO Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 570,753.00 99,467.00 393,856.00
2018-12-31 549,679.00 103,847.00 356,259.00
2018-09-30 523,314.00 115,055.00 330,819.00
2018-06-30 501,825.00 117,728.00 324,069.00
2018-03-31 485,346.00 138,259.00 296,730.00
2017-12-31 472,845.00 131,930.00 289,231.00
2017-09-30 564,895.00 145,362.00 384,347.00
2017-06-30 543,155.00 146,199.00 371,916.00
2017-03-31 522,695.00 142,412.00 349,492.00
2016-12-31 508,324.00 156,328.00 331,553.00
2016-09-30 485,690.00 124,604.00 313,155.00
2016-06-30 491,626.00 128,666.00 319,595.00
2016-03-31 467,384.00 125,221.00 302,884.00
2015-12-31 458,602.00 97,928.00 306,535.00
2015-09-30 435,152.00 99,311.00 283,953.00
2015-06-30 431,235.00 81,784.00 277,395.00
2015-03-31 409,628.00 78,913.00 251,048.00
2014-12-31 400,049.00 69,606.00 232,366.00
2014-09-30 375,316.00 57,196.00 200,817.00
2014-06-30 366,867.00 47,201.00 204,972.00
2014-03-31 344,886.00 51,592.00 188,014.00
2013-12-31 330,853.00 47,516.00 172,827.00
2013-09-30 307,760.00 56,414.00 164,196.00
2013-06-30 301,796.00 53,666.00 164,070.00
2013-03-31 284,983.00 63,816.00 163,861.00
2012-12-31 330,930.00 63,033.00 166,612.00
2012-09-30 311,272.00 60,595.00 144,578.00
2012-06-30 304,805.00 63,933.00 139,378.00
  • Wipro's level of debt (17.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (14.9% vs 17.4% today).
  • Debt is well covered by operating cash flow (91%, greater than 20% of total debt).
  • Wipro earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Wipro's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Wipro has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.26%
Current annual income from Wipro dividends. Estimated to be 1.94% next year.
If you bought ₹2,000 of Wipro shares you are expected to receive ₹5 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Wipro's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.5%).
  • Wipro's dividend is below the markets top 25% of dividend payers in India (1.92%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:WIPRO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 36 Analyst Estimates (S&P Global) See Below
India IT Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 1.6%
India Market Average Dividend Yield Market Cap Weighted Average of 1400 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:WIPRO Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 6.44 7.00
2021-03-31 6.20 31.00
2020-03-31 4.80 32.00
NSEI:WIPRO Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-04-16 0.750 0.265
2019-01-18 0.750 0.278
2018-06-22 0.750 0.326
2018-04-30 0.750 0.376
2018-01-19 0.750 0.343
2017-06-02 0.750 0.347
2017-04-25 0.750 0.389
2016-06-03 2.250 1.217
2016-01-18 4.500 2.195
2015-04-21 5.250 2.492
2015-01-16 3.750 1.589
2014-04-17 3.000 1.457
2014-01-17 3.000 1.414
2013-04-22 2.625 1.643
2013-01-18 2.250 1.442
2012-05-16 4.500 3.199
2012-01-19 2.250 1.413
2011-04-27 2.250 1.552
2011-01-21 1.500 0.896
2011-01-20 1.500 0.857
2010-04-23 1.350 0.850
2009-04-23 0.900 0.749

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Wipro's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (20x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3x coverage).
X
Income/ dividend checks
We assess Wipro's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Wipro afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Wipro has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Abid Neemuchwala
COMPENSATION ₹182,344,918
AGE 51
TENURE AS CEO 3.2 years
CEO Bio

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. Mr. Neemuchwala served as Chief Operating Officer and President of Wipro Ltd. since April 1, 2015 until February 1, 2016. Mr. Neemuchwala served as Global Head of Business Processing Services and Process Excellence of Tata Consultancy Services Limited. He served as an Executive officer of Global Delivery at Tata Consultancy Services Limited. Mr. Neemuchwala served as Vice President of Global Delivery and Services for North America of Tata Consultancy Services Limited. He served as General Manager for India West at Tata Consultancy Services Limited and headed and expanded its operations in Mumbai, Pune and Gujarat from 2004 to 2007 and was responsible for delivering services from western India to 200 plus Indian and global customers with over 17000 people organization. He served as Regional Manager for the Midwest US and in Japan of Tata Consultancy Services Limited. Mr. Neemuchwala served as a Non-Executive Director of TCS e-Serve Limited (formerly known as Citigroup Global Services Limited) since December 2009. He serves as Director at TCS e-Serve International Limited. Mr. Neemuchwala holds Bachelor of Engg. Electronics and Communication and Master's Degree in Industrial Management from IIT, Mumbai and Bachelor of Engineering in Electronics and Communication from National Institute of Technology, Raipur, India.

CEO Compensation
  • Abid's compensation has increased by more than 20% in the past year.
  • Abid's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Wipro management team in years:

3.8
Average Tenure
52.5
Average Age
  • The tenure for the Wipro management team is about average.
Management Team

Azim Premji

TITLE
Founder
COMPENSATION
₹9M
AGE
73
TENURE
50.6 yrs

Abid Neemuchwala

TITLE
CEO & Executive Director
COMPENSATION
₹182M
AGE
51
TENURE
3.2 yrs

Bhanu Bhanumurthy

TITLE
President & COO
AGE
54
TENURE
3.2 yrs

Saurabh Govil

TITLE
President & Chief Human Resources Officer
AGE
50
TENURE
3 yrs

Jatin Dalal

TITLE
Chief Financial Officer
AGE
43
TENURE
4 yrs

K. Sanjiv

TITLE
Chief Technology Officer
AGE
54

Mohammed Khan

TITLE
VP, Compliance Officer & Company Secretary
AGE
48
TENURE
3.8 yrs

Anand Padmanabhan

TITLE
President of Business Development & Strategic Sales
AGE
55

Subbu Subrahmanyam

TITLE
Chief Global Delivery Enablement
AGE
57

Rishad Azim Premji

TITLE
Chief Strategy Officer & Member of the Board
COMPENSATION
₹59M
AGE
41
TENURE
8.6 yrs
Board of Directors Tenure

Average tenure and age of the Wipro board of directors in years:

5.1
Average Tenure
63
Average Age
  • The tenure for the Wipro board of directors is about average.
Board of Directors

Azim Premji

TITLE
Founder
COMPENSATION
₹9M
AGE
73
TENURE
50.6 yrs

Abid Neemuchwala

TITLE
CEO & Executive Director
COMPENSATION
₹182M
AGE
51
TENURE
3.2 yrs

Rishad Azim Premji

TITLE
Chief Strategy Officer & Member of the Board
COMPENSATION
₹59M
AGE
41
TENURE
3.9 yrs

Ashok Ganguly

TITLE
Independent Non-Executive Director
COMPENSATION
₹7M
AGE
81
TENURE
20.3 yrs

Narayanan Vaghul

TITLE
Lead Independent Director
COMPENSATION
₹8M
AGE
82
TENURE
4.8 yrs

Bill Owens

TITLE
Independent Director
COMPENSATION
₹21M
AGE
78
TENURE
12.8 yrs

Mahendra Sharma

TITLE
Independent Director
COMPENSATION
₹6M
AGE
71
TENURE
7.8 yrs

Ireena Vittal

TITLE
Independent Director
COMPENSATION
₹6M
AGE
50
TENURE
5.5 yrs

Patrick Ennis

TITLE
Independent Director
COMPENSATION
₹17M
AGE
54
TENURE
3 yrs

Patrick Lucien Dupuis

TITLE
Independent Director
COMPENSATION
₹17M
AGE
55
TENURE
3 yrs
Who owns this company?
Recent Insider Trading
  • Wipro insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
21. Mar 19 Sell Shrishendu Deb Individual 20. Mar 19 20. Mar 19 -4,800 ₹261.68 ₹-1,256,064
21. Mar 19 Sell Mohd Haque Individual 20. Mar 19 20. Mar 19 -4,000 ₹261.42 ₹-1,045,666
14. Mar 19 Sell Mohd Haque Individual 13. Mar 19 13. Mar 19 -1,000 ₹265.00 ₹-265,000
13. Mar 19 Sell Mohd Haque Individual 10. Mar 19 10. Mar 19 -5,000 ₹260.79 ₹-1,303,975
12. Mar 19 Sell Sharada Kumar Individual 11. Mar 19 11. Mar 19 -4,200 ₹260.10 ₹-1,092,420
12. Mar 19 Sell Azim Premji Trust Company 08. Mar 19 08. Mar 19 -26,666,667 ₹256.58 ₹-6,842,133,165
07. Mar 19 Sell Rajpal Gohar Individual 05. Mar 19 05. Mar 19 -1,980 ₹271.46 ₹-537,499
07. Mar 19 Sell Vellore Nithin Individual 06. Mar 19 06. Mar 19 -14,000 ₹279.97 ₹-3,919,545
19. Feb 19 Sell Vijayasimha Alilughatta Individual 18. Feb 19 18. Feb 19 -4,000 ₹283.12 ₹-1,132,500
20. Feb 19 Sell N Balasubramanian Individual 18. Feb 19 18. Feb 19 -20,000 ₹276.19 ₹-5,523,878
18. Feb 19 Sell Anuj Bhalla Individual 25. Jan 19 31. Jan 19 -26,667 ₹277.17 ₹-7,202,156
13. Feb 19 Sell Rajpal Gohar Individual 12. Feb 19 12. Feb 19 -6,667 ₹281.61 ₹-1,877,422
13. Feb 19 Sell Rohit Adlakha Individual 11. Feb 19 11. Feb 19 -6,953 ₹281.25 ₹-1,955,625
13. Feb 19 Sell P. Rao Individual 12. Feb 19 12. Feb 19 -40,000 ₹280.97 ₹-11,238,998
06. Feb 19 Sell Satyaki Banerjee Individual 06. Feb 19 06. Feb 19 -13,333 ₹278.92 ₹-3,718,999
05. Feb 19 Sell Vinay Firake Individual 05. Feb 19 05. Feb 19 -13,333 ₹294.72 ₹-3,929,609
01. Feb 19 Sell Vijayasimha Alilughatta Individual 31. Jan 19 31. Jan 19 -4,000 ₹274.95 ₹-1,099,800
30. Jan 19 Sell Keyur Maniar Individual 28. Jan 19 29. Jan 19 -4,441 ₹269.55 ₹-1,197,162
29. Jan 19 Sell K. Sanjiv Individual 23. Jan 19 23. Jan 19 -42,667 ₹264.18 ₹-11,271,744
29. Jan 19 Sell Vijayasimha Alilughatta Individual 28. Jan 19 28. Jan 19 -6,000 ₹271.20 ₹-1,627,200
29. Jan 19 Sell Kiran Desai Individual 28. Jan 19 28. Jan 19 -6,667 ₹270.31 ₹-1,802,100
23. Jan 19 Sell Vinay Firake Individual 22. Jan 19 22. Jan 19 -13,333 ₹277.85 ₹-3,704,632
23. Jan 19 Sell N. Kishore Individual 23. Jan 19 23. Jan 19 -6,667 ₹264.00 ₹-1,760,000
28. Jan 19 Sell Rajpal Gohar Individual 24. Jan 19 24. Jan 19 -6,667 ₹264.00 ₹-1,760,000
28. Jan 19 Sell Sunita Cherian Individual 24. Jan 19 24. Jan 19 -20,000 ₹264.00 ₹-5,279,999
25. Jan 19 Sell Raja Ukil Individual 24. Jan 19 24. Jan 19 -11,227 ₹260.41 ₹-2,923,507
24. Jan 19 Sell Saurabh Govil Individual 23. Jan 19 23. Jan 19 -20,000 ₹264.40 ₹-5,287,922
21. Jan 19 Sell N. Kishore Individual 18. Jan 19 18. Jan 19 -6,667 ₹256.50 ₹-1,710,000
21. Jan 19 Sell Vinay Firake Individual 11. Jan 19 11. Jan 19 -6,667 ₹265.31 ₹-1,768,730
12. Dec 18 Sell Saurabh Govil Individual 11. Dec 18 11. Dec 18 -13,333 ₹247.13 ₹-3,295,058
12. Dec 18 Sell Ayaskant Sarangi Individual 12. Dec 18 12. Dec 18 -11,845 ₹247.50 ₹-2,931,719
12. Dec 18 Sell Sunita Cherian Individual 11. Dec 18 11. Dec 18 -13,333 ₹247.50 ₹-3,299,999
31. Oct 18 Sell Jayanta Dey Individual 30. Oct 18 30. Oct 18 -13,333 ₹247.41 ₹-3,298,785
29. Oct 18 Sell Nagarjuna Sadineni Individual 25. Oct 18 25. Oct 18 -5,333 ₹236.71 ₹-1,262,436
25. Oct 18 Sell Krishnakumar Nandagopal Individual 03. Oct 18 03. Oct 18 -93,335 ₹245.27 ₹-22,892,462
28. Sep 18 Sell G. Srinivasan Individual 21. Sep 18 21. Sep 18 -2,333 ₹251.25 ₹-586,250
17. Sep 18 Sell B. Jyotirmayi Individual 14. Sep 18 14. Sep 18 -5,333 ₹246.19 ₹-1,313,000
17. Sep 18 Sell Srinivas Pallia Individual 14. Sep 18 14. Sep 18 -33,333 ₹244.77 ₹-8,158,990
14. Sep 18 Sell B. Jyotirmayi Individual 12. Sep 18 12. Sep 18 -5,328 ₹245.29 ₹-1,306,895
14. Sep 18 Sell Sunita Cherian Individual 12. Sep 18 12. Sep 18 -10,167 ₹243.32 ₹-2,473,718
14. Sep 18 Sell Srinivas Pallia Individual 12. Sep 18 12. Sep 18 -33,333 ₹246.20 ₹-8,206,611
10. Sep 18 Sell Surajit Roy Individual 07. Sep 18 07. Sep 18 -1,783 ₹241.80 ₹-431,050
10. Sep 18 Sell D. Singh Individual 07. Sep 18 07. Sep 18 -6,667 ₹241.90 ₹-1,612,649
10. Sep 18 Sell N. Kishore Individual 07. Sep 18 07. Sep 18 -5,333 ₹244.49 ₹-1,303,927
10. Sep 18 Sell V. Aravind Individual 07. Sep 18 07. Sep 18 -16,000 ₹242.99 ₹-3,887,775
10. Sep 18 Sell Ajay Bhaskar Individual 06. Sep 18 07. Sep 18 -10,000 ₹240.70 ₹-2,407,000
10. Sep 18 Sell B. Bhanumurthy Individual 05. Sep 18 06. Sep 18 -26,667 ₹240.53 ₹-6,398,022
06. Sep 18 Sell Prasad Bhatt Individual 30. Aug 18 30. Aug 18 -2,667 ₹224.62 ₹-599,000
05. Sep 18 Sell Surajit Roy Individual 03. Sep 18 04. Sep 18 -3,600 ₹239.07 ₹-856,278
05. Sep 18 Sell Jay Sahal Individual 03. Sep 18 04. Sep 18 -5,333 ₹234.58 ₹-1,251,071
06. Sep 18 Sell D. Singh Individual 05. Sep 18 05. Sep 18 -13,333 ₹238.33 ₹-3,177,696
06. Sep 18 Sell Rajesh Sehgal Individual 04. Sep 18 04. Sep 18 -3,048 ₹233.25 ₹-710,946
06. Sep 18 Sell Prasad Bhatt Individual 21. Aug 18 06. Sep 18 -4,000 ₹240.00 ₹-916,989
06. Sep 18 Sell Mohd Haque Individual 04. Sep 18 05. Sep 18 -23,333 ₹237.82 ₹-5,479,900
06. Sep 18 Sell B. Bhanumurthy Individual 03. Sep 18 04. Sep 18 -26,667 ₹235.31 ₹-6,247,676
05. Sep 18 Sell N. Kishore Individual 05. Sep 18 05. Sep 18 -6,667 ₹239.25 ₹-1,595,000
05. Sep 18 Sell Viswanathan Ramaswamy Individual 25. Aug 18 05. Sep 18 -7,351 ₹231.81 ₹-1,703,941
05. Sep 18 Sell Mohan Ramanan Individual 03. Sep 18 03. Sep 18 -9,211 ₹236.52 ₹-2,178,468
04. Sep 18 Sell Jayanta Dey Individual 03. Sep 18 03. Sep 18 -5,257 ₹235.78 ₹-1,239,560
04. Sep 18 Sell N. Kishore Individual 03. Sep 18 03. Sep 18 -5,819 ₹236.11 ₹-1,373,840
04. Sep 18 Sell V. Aravind Individual 03. Sep 18 03. Sep 18 -13,333 ₹235.03 ₹-3,133,705
04. Sep 18 Sell Anand Padmanabhan Individual 03. Sep 18 03. Sep 18 -200,000 ₹231.72 ₹-46,343,357
08. Aug 18 Sell T. V. Kumar Individual 06. Aug 18 06. Aug 18 -26,667 ₹207.77 ₹-5,540,598
11. Jun 18 Buy Meghdoot Thakkar Individual 07. Jun 18 07. Jun 18 4,485 ₹236.24 ₹1,059,610
05. Jun 18 Sell Venkataraman Mahadevan Individual 05. Jun 18 05. Jun 18 -4,400 ₹195.00 ₹-858,000
21. May 18 Sell Anil Jain Individual 17. May 18 17. May 18 -33,333 ₹207.00 ₹-6,900,000
03. May 18 Sell Satyaki Banerjee Individual 02. May 18 02. May 18 -3,333 ₹206.37 ₹-687,900
X
Management checks
We assess Wipro's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Wipro has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Be Worried About Insider Transactions At Wipro Limited (NSE:WIPRO)?

So before you buy or sell Wipro Limited (NSE:WIPRO), you may well want to know whether insiders have been buying or selling. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation.

Simply Wall St -

Is Wipro Limited’s (NSE:WIPRO) 14% Return On Capital Employed Good News?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Is Wipro Limited’s (NSE:WIPRO) Cash Outlook Optimistic?

If you are currently a shareholder in Wipro Limited (NSE:WIPRO), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … What is free cash flow. … Wipro generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating.

Simply Wall St -

Has Wipro Limited's (NSE:WIPRO) Earnings Momentum Changed Recently?

When Wipro Limited (NSE:WIPRO) released its most recent earnings update (31 December 2018), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were Wipro's average earnings over the past couple of years, and its industry performance. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 0.1%, indicating the rate at which WIPRO is growing has slowed down

Simply Wall St -

How Much Did Wipro Limited's (NSE:WIPRO) CEO Pocket Last Year?

Abid Neemuchwala became the CEO of Wipro Limited (NSE:WIPRO) in 2016. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … How Does Abid Neemuchwala's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Is Wipro Limited's (NSE:WIPRO) ROE Of 15% Impressive?

This article is for those who would like to learn about Return On Equity (ROE). … Our data shows Wipro has a return on equity of 15% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Why Wipro Limited's (NSE:WIPRO) High P/E Ratio Isn't Necessarily A Bad Thing

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … How Do I Calculate Wipro's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Read This Before Buying Wipro Limited (NSE:WIPRO) Shares

We don't think shareholders should simply follow insider transactions. … Wipro Insider Transactions Over The Last Year. … That means that an insider was selling shares at slightly below the current price (₹326)

Simply Wall St -

Intrinsic Calculation For Wipro Limited (NSE:WIPRO) Shows Investors Are Overpaying

How far off is Wipro Limited (NSE:WIPRO) from its intrinsic value? … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Should Wipro Limited’s (NSE:WIPRO) Weak Investment Returns Worry You?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … What is Return On Capital Employed (ROCE)? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Company Info

Description

Wipro Limited operates as an information technology (IT), consulting, and business process services (BPS) company worldwide. The company’s IT Services segment offers a range of 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 services, analytics services, BPS, research and development services, and hardware and software design services to various 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 distributes 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. The company has research collaboration agreements with Tel Aviv University for core and applied research in image and text analytics using deep learning and sparse representation models and techniques; and IISc on technologies for autonomous vehicles. Wipro Limited was founded in 1945 and is headquartered in Bengaluru, India.

Details
Name: Wipro Limited
WIPRO
Exchange: NSEI
Founded: 1945
₹1,710,441,208,700
6,005,762,671
Website: http://www.wipro.com
Address: Wipro Limited
Doddakannelli,
Sarjapur Road,
Bengaluru,
Karnataka, 560035,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 507685 Equity Shares Mumbai Stock Exchange IN INR 25. Jan 1991
NSEI WIPRO Equity Shares National Stock Exchange of India IN INR 25. Jan 1991
NYSE WIT SPON ADR EACH REP 1 ORD SHS INR2 New York Stock Exchange US USD 19. Oct 2000
DB WIOA SPON ADR EACH REP 1 ORD SHS INR2 Deutsche Boerse AG DE EUR 19. Oct 2000
WBAG WIOA SPON ADR EACH REP 1 ORD SHS INR2 Wiener Boerse AG AT EUR 19. Oct 2000
BMV WIT N SPON ADR EACH REP 1 ORD SHS INR2 Bolsa Mexicana de Valores MX MXN 19. Oct 2000
Number of employees
Current staff
Staff numbers
175,000
Wipro employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/22 12:49
End of day share price update: 2019/04/22 00:00
Last estimates confirmation: 2019/04/22
Last earnings filing: 2019/04/16
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.