WIPRO - Fundamental Analysis: Financial Health & Valuation

📊 Financial Overview: Wipro Ltd demonstrates solid fundamentals with a ROE of 17.8% and ROCE of 23.0%, indicating strong capital efficiency. The debt-to-equity ratio of 0.12 reflects a healthy balance sheet. However, the quarterly profit decline of 4.75% (₹2,614 Cr vs ₹3,696 Cr) and a negative PEG ratio (-5.24) suggest earnings pressure and valuation concerns.

💰 Valuation Metrics: Trading at a P/E of 21.0, Wipro is undervalued compared to the industry average of 29.4. The P/B ratio of ~3.9 (₹241 / ₹61.5) is reasonable, and the dividend yield of 2.49% adds income appeal. EPS stands at ₹11.5, supporting a stable earnings base.

🏢 Business Model & Competitive Edge: Wipro is a global IT services and consulting firm with a strong presence in digital transformation, cloud, cybersecurity, and AI. Its diversified client base across industries and geographies provides resilience. Strategic acquisitions and focus on innovation enhance its competitive edge.

📉 Entry Zone Recommendation: With an RSI of 42.9, the stock is approaching oversold territory. A favorable entry zone lies between ₹225–₹235, near its 52-week low of ₹225 and below both DMA levels. MACD at -1.37 indicates bearish momentum, suggesting patience before entry.

📈 Long-Term Holding Guidance: Wipro is a stable long-term investment in the IT sector. Investors may accumulate near support levels and hold with a 5+ year horizon, focusing on margin recovery and digital growth initiatives.