WIPRO - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | WIPRO | Market Cap | 2,13,130 Cr. | Current Price | 203 ₹ | High / Low | 273 ₹ |
| Stock P/E | 17.6 | Book Value | 60.7 ₹ | Dividend Yield | 5.42 % | ROCE | 23.9 % |
| ROE | 19.2 % | Face Value | 2.00 ₹ | DMA 50 | 202 ₹ | DMA 200 | 227 ₹ |
| Chg in FII Hold | 0.10 % | Chg in DII Hold | -0.52 % | PAT Qtr | 3,037 Cr. | PAT Prev Qtr | 2,782 Cr. |
| RSI | 58.9 | MACD | -1.00 | Volume | 4,26,52,368 | Avg Vol 1Wk | 2,37,70,454 |
| Low price | 186 ₹ | High price | 273 ₹ | PEG Ratio | 1.80 | Debt to equity | 0.13 |
| 52w Index | 19.2 % | Qtr Profit Var | 3.91 % | EPS | 11.6 ₹ | Industry PE | 20.7 |
📊 Core Financials:
WIPRO has delivered stable financials with quarterly PAT rising from 2,782 Cr. to 3,037 Cr. (↑3.91%). ROCE at 23.9% and ROE at 19.2% are strong, reflecting efficient capital utilization. Debt-to-equity is low at 0.13, indicating a healthy balance sheet. EPS stands at 11.6 ₹, supported by consistent profitability and strong cash flows.
💹 Valuation Indicators:
The stock trades at a P/E of 17.6, below the industry average of 20.7, suggesting undervaluation. P/B ratio is ~3.34 (Price 203 ₹ / Book Value 60.7 ₹), which is moderate. PEG ratio of 1.80 indicates growth is priced at a premium but still reasonable. Intrinsic value appears higher than current levels, offering margin of safety.
🏢 Business Model & Competitive Advantage:
WIPRO operates in IT services and consulting, with global presence and diversified offerings. Its competitive advantage lies in scale, brand recognition, and strong client relationships. High ROCE and ROE highlight superior capital efficiency, though growth has been slower compared to top peers.
🎯 Entry Zone & Long-Term Guidance:
Current price (203 ₹) is near its 50 DMA (202 ₹) but below 200 DMA (227 ₹), showing neutral-to-bearish momentum. RSI at 58.9 indicates moderate strength, while MACD (-1.00) shows mild negative momentum. A good entry zone would be 195–205 ₹ if undervaluation persists. Long-term holding is favorable given strong fundamentals, high dividend yield (5.42%), and sector resilience.
Positive
- 📈 Quarterly PAT growth (↑3.91%).
- 💰 Strong ROCE (23.9%) and ROE (19.2%).
- 📊 Attractive P/E (17.6) vs industry average (20.7).
- 🌍 Dividend yield high at 5.42%.
Limitation
- ⚠️ EPS modest at 11.6 ₹ relative to market cap.
- 📉 PEG ratio high (1.80), growth priced at premium.
- 📉 FII holdings slightly reduced (+0.10% net change negligible) and DII holdings reduced (-0.52%).
- 📉 Price below 200 DMA, weak long-term momentum.
Company Negative News
📰 No major negative news reported recently, but slower growth compared to peers and reduced institutional holdings raise concerns.
Company Positive News
📰 Quarterly earnings improved with PAT rising to 3,037 Cr. Dividend yield remains attractive at 5.42%, and fundamentals highlight strong capital efficiency.
Industry
🏭 Industry P/E stands at 20.7, slightly higher than WIPRO’s valuation. The IT services sector remains resilient, driven by digital transformation, cloud adoption, and consulting demand.
Conclusion
✅ WIPRO is financially strong with efficient capital utilization, attractive dividend yield, and undervaluation compared to industry peers. Best suited for long-term investors who can accumulate near 195–205 ₹. Short-term traders should remain cautious due to weak technical momentum despite strong fundamentals.
Would you like me to extend this into a peer comparison to evaluate how WIPRO stacks up against Infosys, TCS, and HCL Tech?