⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
WIPRO - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | WIPRO | Market Cap | 2,53,795 Cr. | Current Price | 242 ₹ | High / Low | 324 ₹ |
| Stock P/E | 21.1 | Book Value | 61.5 ₹ | Dividend Yield | 4.55 % | ROCE | 23.0 % |
| ROE | 17.8 % | Face Value | 2.00 ₹ | DMA 50 | 252 ₹ | DMA 200 | 255 ₹ |
| Chg in FII Hold | -0.23 % | Chg in DII Hold | 0.52 % | PAT Qtr | 2,782 Cr. | PAT Prev Qtr | 2,614 Cr. |
| RSI | 41.0 | MACD | -6.21 | Volume | 2,26,14,353 | Avg Vol 1Wk | 1,47,84,032 |
| Low price | 225 ₹ | High price | 324 ₹ | PEG Ratio | -5.28 | Debt to equity | 0.12 |
| 52w Index | 17.0 % | Qtr Profit Var | -2.06 % | EPS | 11.5 ₹ | Industry PE | 23.9 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT rose from 2,614 Cr. to 2,782 Cr., though YoY profit variation is slightly negative (-2.06%).
- Margins & Returns: ROCE at 23.0% and ROE at 17.8% highlight strong efficiency and profitability.
- Debt Ratios: Debt-to-equity at 0.12 indicates low leverage, ensuring financial stability.
- Cash Flows: Dividend yield of 4.55% provides attractive shareholder returns, supported by consistent cash generation.
💹 Valuation Indicators
- P/E Ratio: 21.1 vs industry average of 23.9 → trades at a slight discount.
- P/B Ratio: Current Price / Book Value ≈ 3.93 → moderately above intrinsic value.
- PEG Ratio: -5.28 → negative, signaling weak growth outlook relative to valuation.
- Intrinsic Value: Current price (242 ₹) appears fair, supported by strong returns and dividend yield.
🏢 Business Model & Competitive Advantage
- Global IT services provider with diversified offerings across consulting, digital, and technology solutions.
- Strong efficiency ratios (ROCE, ROE) provide competitive edge.
- Attractive dividend yield enhances shareholder value.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 230 ₹ – 240 ₹, near support levels and 52-week low zone.
- Long-Term Holding: Suitable for conservative investors seeking steady returns; staggered accumulation recommended due to weak growth signals.
✅ Positive
- Strong ROCE (23%) and ROE (17.8%) highlight efficiency.
- Dividend yield of 4.55% provides attractive income.
- Quarterly PAT improved sequentially from 2,614 Cr. to 2,782 Cr.
⚠️ Limitation
- PEG ratio (-5.28) signals weak growth outlook.
- Quarterly profit variation (-2.06%) shows earnings pressure.
- Stock trading below both 50 DMA (252 ₹) and 200 DMA (255 ₹), indicating weak momentum.
📉 Company Negative News
- RSI at 41.0 and negative MACD (-6.21) suggest bearish technical outlook.
- FII holdings decreased (-0.23%), showing reduced foreign investor confidence.
📈 Company Positive News
- DII holdings increased (+0.52%), reflecting domestic institutional support.
- Strong dividend yield continues to attract long-term investors.
🏭 Industry
- Industry P/E at 23.9 indicates sector trades at slightly higher multiples.
- IT services sector benefits from digital transformation and global outsourcing demand.
- WIPRO trades at a discount compared to peers, offering potential value if growth stabilizes.
🔎 Conclusion
WIPRO demonstrates strong fundamentals with high efficiency and attractive dividend yield, but faces weak growth signals and bearish technical momentum. Entry is advisable near 230 ₹ – 240 ₹ for long-term investors, with staggered accumulation to mitigate risks. Overall, the company remains strategically positioned in IT services, though valuation and growth outlook warrant cautious optimism.