Current Rating and Its Significance
MarketsMOJO’s 'Buy' rating for Wipro Ltd. indicates a positive outlook on the stock, suggesting that investors may consider adding or holding the stock in their portfolios. This recommendation is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. The rating was revised from 'Hold' to 'Buy' on 02 January 2026, reflecting an improvement in the company’s overall mojo score from 68 to 75. This score is a composite measure that integrates various financial and market indicators to assess the stock’s attractiveness.
Here’s How Wipro Ltd. Looks Today
As of 05 January 2026, Wipro Ltd. demonstrates a robust profile across multiple dimensions. The company’s market capitalisation firmly places it in the large-cap category within the Computers - Software & Consulting sector, signalling stability and investor confidence. Despite a slight dip in the stock price on the day (-2.66%), the medium-term performance remains encouraging, with a 3-month gain of 8.69% and a modest 1-month increase of 0.77%. The year-to-date return stands at -0.53%, while the one-year return is -11.02%, reflecting some volatility but also underlying strength in fundamentals.
Quality Assessment
Wipro’s quality grade is rated as 'good', underpinned by high management efficiency and strong profitability metrics. The company boasts a return on equity (ROE) of 16.48%, which is a key indicator of how effectively management is using shareholders’ funds to generate profits. This level of ROE is well above average for the sector, signalling operational excellence and prudent capital allocation. Additionally, Wipro maintains a low debt-to-equity ratio, averaging zero, which minimises financial risk and enhances balance sheet strength. The majority shareholding by promoters further adds to governance stability and strategic continuity.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Valuation Perspective
Wipro’s valuation is considered 'very attractive' as of 05 January 2026. The stock trades at a price-to-book (P/B) ratio of 3.3, which is reasonable relative to its historical averages and peer group valuations. This suggests that the market is pricing the stock fairly, if not conservatively, given the company’s growth prospects. The price-earnings-to-growth (PEG) ratio stands at 1.4, indicating that earnings growth is reasonably aligned with the stock price, a positive sign for value-conscious investors. Furthermore, Wipro offers a high dividend yield of 4.1%, providing an additional income stream that enhances total shareholder returns.
Financial Trend Analysis
The financial grade for Wipro is currently 'flat', reflecting steady but unspectacular growth trends. Despite the stock’s one-year return of -11.02%, the company’s profits have risen by 15% over the same period, highlighting improving operational performance. This divergence between earnings growth and stock price suggests potential undervaluation or market caution, which the 'Buy' rating seeks to capitalise on. Investors should note that the company’s consistent profitability and low leverage position it well to navigate sectoral challenges and capitalise on emerging opportunities.
Technical Outlook
From a technical standpoint, Wipro is rated 'bullish'. The stock’s recent price movements and momentum indicators support a positive near-term trend. While the stock experienced a minor pullback of 2.66% on the latest trading day, the broader technical signals suggest resilience and potential for further appreciation. This technical strength complements the fundamental backdrop, reinforcing the rationale behind the current 'Buy' rating.
Summary for Investors
In summary, Wipro Ltd.’s 'Buy' rating by MarketsMOJO as of 02 January 2026 reflects a balanced assessment of quality, valuation, financial trends, and technical factors. The company’s strong ROE, low debt, attractive valuation metrics, steady profit growth, and bullish technical indicators combine to present a compelling investment case. Investors looking for exposure to the Computers - Software & Consulting sector may find Wipro’s current profile favourable, especially given its dividend yield and large-cap stability.
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Investor Considerations
While the 'Buy' rating signals confidence, investors should remain mindful of the broader market environment and sector-specific risks. The stock’s recent volatility and negative one-year return highlight the importance of a long-term perspective. Wipro’s strong fundamentals and dividend yield provide a cushion against short-term fluctuations, but ongoing monitoring of earnings trends and market conditions is advisable. The company’s zero debt position and promoter backing add layers of security, making it a potentially attractive option for investors seeking a blend of growth and income in the technology consulting space.
Outlook
Looking ahead, Wipro’s ability to sustain profit growth and capitalise on digital transformation trends will be key drivers of its stock performance. The current 'Buy' rating reflects optimism that the company’s quality and valuation metrics will continue to support shareholder value creation. Investors should consider this rating as part of a diversified portfolio strategy, balancing sector exposure with individual stock fundamentals and technical signals.
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