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Wipro Ltd WIPRO

Morningstar Rating
INR 527.35 +12.50 (2.43%)
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Company Report

Wipro Is a Leading IT Services Vendor With a Global Footprint

Wipro is a leading global IT services provider with the typical menu of offerings, from software implementation to digital transformation consulting to servicing entire business operations teams. We think Wipro merits a narrow economic moat rating, similar to many of its peers, as we believe it benefits from switching costs and intangible assets, although we also see it benefiting from a cost advantage. Forays into the higher-value realm of industrial engineering will help ensure that Wipro does not miss out on substantial growth trends in the overall IT services industry.

Price vs Fair Value

WIPRO is trading at a 46% premium.
Price
INR 514.85
Fair Value
INR 574.00
Uncertainty
Medium
1-Star Price
INR 185.10
5-Star Price
INR 311.00
Economic Moat
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Capital Allocation
Wpthxsd

Bulls Say, Bears Say

Bulls

Wipro could benefit from greater margin expansion than expected in our base case as more automated tech solutions decrease the variable costs associated with each incremental sale.

Bears

Wipro could suffer greater wage hikes than expected, leading to aggressive margin contraction if automation and mix shift benefits prove to be smaller in scale.

Is it the right time to buy, sell, or hold?
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News

Trading Information

Previous Close Price
INR 514.85
Day Range
INR 514.10535.80
52-Week Range
INR 375.05545.90
Bid/Ask
INR 527.10 / INR 527.35
Market Cap
INR 2.75 Tril
Volume/Avg
15.4 Mil / 8.1 Mil

Key Statistics

Price/Earnings (Normalized)
23.46
Price/Sales
3.04
Dividend Yield (Trailing)
0.19%
Dividend Yield (Forward)
0.19%
Total Yield
5.59%

Company Profile

Wipro is a leading global IT services provider, with 175,000 employees. Based in Bengaluru, this India IT services firm leverages its offshore outsourcing model to derive over half of its revenue (57%) from North America. The company offers traditional IT services offerings: consulting, managed services, and cloud infrastructure services as well as business process outsourcing as a service.
Sector
Technology
Industry
Information Technology Services
Stock Style Box
Large Core
Total Number of Employees
230,000

Competitors

Valuation

Metric
WIPRO
INFY
ACN
Price/Earnings (Normalized)
23.4626.6025.54
Price/Book Value
3.617.307.46
Price/Sales
3.044.163.00
Price/Cash Flow
18.4920.4717.62
Price/Earnings
WIPRO
INFY
ACN

Financial Strength

Metric
WIPRO
INFY
ACN
Quick Ratio
2.472.121.03
Current Ratio
2.582.311.16
Interest Coverage
11.1869.91169.13
Quick Ratio
WIPRO
INFY
ACN

Profitability

Metric
WIPRO
INFY
ACN
Return on Assets (Normalized)
9.61%20.35%16.59%
Return on Equity (Normalized)
15.44%33.45%35.29%
Return on Invested Capital (Normalized)
11.76%27.28%27.22%
Return on Assets
WIPRO
INFY
ACN
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Information Technology Services Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Accenture PLC Class A
ACN
JtfmfllsvvGzck$190.1 Bil
International Business Machines Corp
IBM
GcklcQknvld$158.9 Bil
Fiserv Inc
FI
LvzdvyyjNtkbzc$87.7 Bil
Infosys Ltd ADR
INFY
HjctjkkfMjxhb$77.7 Bil
Fidelity National Information Services Inc
FIS
VctndnfjZwsnl$41.9 Bil
Cognizant Technology Solutions Corp Class A
CTSH
NpzzdvwlJpdzlcg$33.8 Bil
Wipro Ltd ADR
WIT
TpbbychMjggr$32.2 Bil
Broadridge Financial Solutions Inc
BR
GvzltrdFljsxy$23.3 Bil
CGI Inc Class A
GIB
JqzbfqgJdrxrdv$22.7 Bil
Jack Henry & Associates Inc
JKHY
YcqxbxnnwqXbyn$12.1 Bil

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