WIPRO - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | WIPRO | Market Cap | 2,10,460 Cr. | Current Price | 201 ₹ | High / Low | 273 ₹ |
| Stock P/E | 17.4 | Book Value | 60.7 ₹ | Dividend Yield | 5.48 % | ROCE | 23.9 % |
| ROE | 19.2 % | Face Value | 2.00 ₹ | DMA 50 | 207 ₹ | DMA 200 | 232 ₹ |
| Chg in FII Hold | 0.10 % | Chg in DII Hold | -0.52 % | PAT Qtr | 3,037 Cr. | PAT Prev Qtr | 2,782 Cr. |
| RSI | 48.0 | MACD | 0.14 | Volume | 1,62,38,219 | Avg Vol 1Wk | 2,53,71,697 |
| Low price | 186 ₹ | High price | 273 ₹ | PEG Ratio | 1.78 | Debt to equity | 0.13 |
| 52w Index | 16.3 % | Qtr Profit Var | 3.91 % | EPS | 11.6 ₹ | Industry PE | 21.6 |
📊 Financials: WIPRO demonstrates strong fundamentals with ROCE at 23.9% and ROE at 19.2%, reflecting efficient capital utilization. Debt-to-equity ratio is low (0.13), ensuring financial stability. EPS of ₹11.6 supports earnings, while quarterly PAT improved (₹2,782 Cr → ₹3,037 Cr, +3.91%), showing consistent profitability.
💹 Valuation: Current P/E of 17.4 is below industry average (21.6), suggesting attractive valuation. PEG ratio of 1.78 indicates growth is fairly priced. P/B ratio (~3.3) is reasonable relative to book value. Dividend yield of 5.48% adds strong income support for investors.
🏢 Business Model & Advantage: WIPRO operates in IT services and consulting, benefiting from global outsourcing demand and digital transformation. Competitive advantage lies in scale, diversified service offerings, and strong client relationships. Institutional support remains mixed, with FII holdings slightly up (+0.10%) but DII holdings down (-0.52%).
📈 Entry Zone: Attractive accumulation near ₹190–₹200 (close to support and below DMA 50). Current price (₹201) is near fair entry, with resistance at ₹260–₹270.
⏳ Long-Term Holding: Strong candidate for 3–5 year horizon given consistent profitability, attractive valuations, and high dividend yield. Partial profit booking advised near ₹265–₹270 resistance zones.
Positive
- Strong ROCE (23.9%) and ROE (19.2%)
- Low debt-to-equity (0.13)
- Dividend yield of 5.48% provides strong income support
- EPS of ₹11.6 supports valuation
- FII holdings increased (+0.10%)
Limitation
- DII holdings decreased (-0.52%)
- Moderate PEG ratio (1.78) suggests growth is fairly priced, not cheap
- Technical weakness with price below DMA 200 (₹232)
Company Negative News
- Domestic institutional confidence weakened (DII -0.52%)
- Stock trading below long-term DMA 200 indicates technical pressure
Company Positive News
- Quarterly PAT growth (+3.91%)
- Strong dividend payout supports investor returns
- FII inflows (+0.10%) reflect foreign confidence
Industry
- Industry P/E at 21.6 reflects moderate valuations
- IT services sector supported by digital transformation and outsourcing demand
Conclusion
WIPRO is fundamentally strong with attractive valuations, high dividend yield, and consistent profitability. Entry is ideal near ₹190–₹200, with profit booking advised near ₹265–₹270. Long-term investors can hold for 3–5 years, benefiting from sector growth and strong fundamentals.