WIPRO - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 3.6

💻 Fundamental Analysis of Wipro Ltd (WIPRO)

(One of India’s top IT services firms — global presence in consulting, cloud, and digital transformation)

✅ Strengths

Solid Financials

ROCE: 19.5%, ROE: 16.6% — strong capital efficiency

EPS: ₹12.9, with Qtr Profit Var: +10.9% — stable earnings

Dividend Yield: 2.38% — attractive for long-term holders

Reasonable Valuation

P/E: 19.6 vs Industry PE: 29.1 — undervalued relative to peers

Book Value: ₹79.1 vs Price: ₹252 — ~3.2x book, fair for IT sector

Debt-to-Equity: 0.23 — low leverage, healthy balance sheet

Volume Surge

Current volume significantly above 1-week average — strong market interest

⚠️ Concerns

PEG Ratio: 8.56 — high, suggests valuation not fully supported by growth

MACD: -1.53, RSI: 39.8 — bearish technical signals, near oversold

FII Hold ↓ 0.19% — foreign investors trimming

52W Index: 26.9% — significant drawdown from highs

PAT Qtr: ₹3,330 Cr vs Prev Qtr: ₹3,570 Cr — slight decline in profits

Price below DMA 50 & 200 — weak short-term trend

📉 Ideal Entry Price Zone

Entry Zone: ₹230–₹245

Near support and below moving averages

Offers better margin of safety with improving fundamentals

🧭 Long-Term Investment Outlook

Wipro is a stable long-term candidate in the IT services space, especially for investors seeking dividend yield and moderate growth. While not as aggressive as peers like Infosys or TCS, its valuation and capital efficiency make it suitable for conservative portfolios.

Holding Period: 3–5 years

Reassess if ROE drops below 14% or PEG remains >6.0

Watch for digital transformation wins, margin expansion, and global deal flow

🚪 Exit Strategy (If Already Holding)

Partial Exit Zone: ₹280–₹300

If price rebounds toward resistance and RSI crosses 60

Full Exit

If ROE drops below 12% or PEG remains elevated

If price breaks below ₹225 and fails to recover

If quarterly profit growth stagnates or reverses

Reinvest: On dips near ₹230 if fundamentals remain intact and technicals improve

Would you like a peer comparison with Infosys, HCL Tech, or Tech Mahindra to evaluate sector positioning and growth potential?

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