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WIPR

Wipro NSEI:WIPRO Stock Report

Last Price

₹418.75

Market Cap

₹2.3t

7D

3.3%

1Y

-23.5%

Updated

24 Jun, 2022

Data

Company Financials +
WIPRO fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance3/6
Financial Health6/6
Dividends4/6

WIPRO 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₹418.75
52 Week High₹739.85
52 Week Low₹402.05
Beta0.75
1 Month Change-5.87%
3 Month Change-30.60%
1 Year Change-23.52%
3 Year Change49.29%
5 Year Change116.12%
Change since IPO12,824.44%

Recent News & Updates

Jun 16
Here's Why Wipro (NSE:WIPRO) Has Caught The Eye Of Investors

Here's Why Wipro (NSE:WIPRO) Has Caught The Eye Of Investors

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...

Jun 03
We Think Wipro (NSE:WIPRO) Can Manage Its Debt With Ease

We Think Wipro (NSE:WIPRO) Can Manage Its Debt With Ease

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

May 22
Estimating The Fair Value Of Wipro Limited (NSE:WIPRO)

Estimating The Fair Value Of Wipro Limited (NSE:WIPRO)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Wipro Limited...

Shareholder Returns

WIPROIN ITIN Market
7D3.3%4.4%2.3%
1Y-23.5%-6.1%-0.9%

Return vs Industry: WIPRO underperformed the Indian IT industry which returned -5.1% over the past year.

Return vs Market: WIPRO underperformed the Indian Market which returned -1.7% over the past year.

Price Volatility

Is WIPRO's price volatile compared to industry and market?
WIPRO volatility
WIPRO Average Weekly Movement4.4%
IT Industry Average Movement7.1%
Market Average Movement6.9%
10% most volatile stocks in IN Market9.9%
10% least volatile stocks in IN Market4.5%

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

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

About the Company

FoundedEmployeesCEOWebsite
1945240,000Thierry 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?
WIPRO fundamental statistics
Market Cap₹2.30t
Earnings (TTM)₹122.19b
Revenue (TTM)₹790.93b

18.8x

P/E Ratio

2.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WIPRO income statement (TTM)
Revenue₹790.93b
Cost of Revenue₹555.87b
Gross Profit₹235.06b
Other Expenses₹112.87b
Earnings₹122.19b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)22.29
Gross Margin29.72%
Net Profit Margin15.45%
Debt/Equity Ratio23.0%

How did WIPRO perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

27%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

WIPRO 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/Revenue2.7x
Enterprise Value/EBITDA13.5x
PEG Ratio2x

Price to Earnings Ratio vs Peers

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

WIPRO PE Ratio vs Peers
The above table shows the PE ratio for WIPRO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average22.7x

Price-To-Earnings vs Peers: WIPRO is good value based on its Price-To-Earnings Ratio (18.8x) compared to the peer average (22.7x).


Price to Earnings Ratio vs Industry

How does WIPRO's PE Ratio compare vs other companies in the Indian IT Industry?

Price-To-Earnings vs Industry: WIPRO is good value based on its Price-To-Earnings Ratio (18.8x) compared to the Indian IT industry average (25.4x)


Price to Earnings Ratio vs Fair Ratio

What is WIPRO'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.

WIPRO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.8x
Fair PE Ratio34.6x

Price-To-Earnings vs Fair Ratio: WIPRO is good value based on its Price-To-Earnings Ratio (18.8x) compared to the estimated Fair Price-To-Earnings Ratio (34.6x).


Share Price vs Fair Value

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

Below Fair Value: WIPRO (₹418.75) is trading below our estimate of fair value (₹510.04)

Significantly Below Fair Value: WIPRO is trading below fair value, but not by a significant amount.


Price to Earnings Growth Ratio

PEG Ratio: WIPRO is poor value based on its PEG Ratio (2x)


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Future Growth

How is Wipro forecast to perform in the next 1 to 3 years based on estimates from 38 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


9.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WIPRO's forecast earnings growth (9.3% per year) is above the savings rate (6.7%).

Earnings vs Market: WIPRO's earnings (9.3% per year) are forecast to grow slower than the Indian market (17.5% per year).

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

Revenue vs Market: WIPRO's revenue (10.1% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: WIPRO's revenue (10.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WIPRO's Return on Equity is forecast to be low in 3 years time (19.1%).


Discover growth companies

Past Performance

How has Wipro performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


8.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: WIPRO has high quality earnings.

Growing Profit Margin: WIPRO's current net profit margins (15.4%) are lower than last year (17.4%).


Past Earnings Growth Analysis

Earnings Trend: WIPRO's earnings have grown by 8.6% per year over the past 5 years.

Accelerating Growth: WIPRO's earnings growth over the past year (13.2%) exceeds its 5-year average (8.6% per year).

Earnings vs Industry: WIPRO earnings growth over the past year (13.2%) underperformed the IT industry 38.6%.


Return on Equity

High ROE: WIPRO's Return on Equity (18.6%) is considered low.


Discover strong past performing companies

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: WIPRO's short term assets (₹620.8B) exceed its short term liabilities (₹308.3B).

Long Term Liabilities: WIPRO's short term assets (₹620.8B) exceed its long term liabilities (₹112.2B).


Debt to Equity History and Analysis

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

Reducing Debt: WIPRO's debt to equity ratio has reduced from 25.7% to 23% over the past 5 years.

Debt Coverage: WIPRO's debt is well covered by operating cash flow (73%).

Interest Coverage: WIPRO 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

  • Future Dividend Coverage


1.43%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: WIPRO's dividend (1.43%) is higher than the bottom 25% of dividend payers in the Indian market (0.44%).

High Dividend: WIPRO's dividend (1.43%) is low compared to the top 25% of dividend payers in the Indian market (1.9%).


Stability and Growth of Payments

Stable Dividend: WIPRO's dividend payments have been volatile in the past 10 years.

Growing Dividend: WIPRO's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (26.8%), WIPRO's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (36.3%), WIPRO's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

1.7yrs

Average management tenure


CEO

Thierry Delaporte (54 yo)

1.92yrs

Tenure

₹798,298,011

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 ($USD10.21M) is above average for companies of similar size in the Indian market ($USD1.25M).

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


Leadership Team

Experienced Management: WIPRO's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: WIPRO's board of directors are considered experienced (6.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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: WIPRO
  • Exchange: NSEI
  • Founded: 1945
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Implied Market Cap: ₹2.295t
  • Shares outstanding: 5.48b
  • 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 Analysis2022/06/24 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
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.