Recent Price Movement and Market Context
On 23 Feb 2026, Wipro Ltd. recorded its lowest price in the past year at Rs.206.6, continuing a four-day losing streak that has resulted in a cumulative decline of 4.12%. The stock underperformed its sector by 0.88% on the day, while the broader Sensex index advanced by 0.62%, closing at 83,331.97 points. Notably, the Sensex is trading just 3.39% below its 52-week high of 86,159.02, supported by gains in mega-cap stocks. In contrast, Wipro’s share price has fallen 32.54% over the last 12 months, significantly lagging the Sensex’s positive 10.65% return over the same period.
Wipro’s current trading levels are below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish momentum. The stock’s 52-week high stands at Rs.303.45, highlighting the extent of the recent decline.
Financial Performance and Valuation Metrics
Wipro’s financial indicators reveal a mixed picture. The company’s operating profit has grown at a modest annual rate of 5.44% over the past five years, which is considered subdued relative to sector peers. The latest quarterly results showed flat performance, with operating profit to net sales ratio at a low 18.24%, and profit before tax (excluding other income) at Rs.3,128.60 crore, marking the lowest levels in recent quarters.
Additionally, the company’s debtors turnover ratio for the half-year period stands at 7.56 times, indicating slower collection efficiency compared to historical averages. These factors contribute to the stock’s downgrade from a Hold to a Sell rating on 17 Feb 2026, reflected in its current Mojo Score of 47.0 and a Mojo Grade of Sell. The market capitalisation grade remains at 1, underscoring concerns about the company’s scale relative to its valuation.
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Comparative Performance and Sector Positioning
Over the last three years, Wipro has consistently underperformed the BSE500 index, with negative returns over one year and three months periods. This underperformance contrasts with the broader Computers - Software & Consulting sector, which has generally maintained positive momentum. Despite this, Wipro maintains a high dividend yield of 5.24% at the current price level, which is attractive relative to many peers.
From a valuation standpoint, the company trades at a price-to-book value of 2.6, which is a premium compared to the average historical valuations of its sector peers. The price-earnings-to-growth (PEG) ratio stands at 2.5, reflecting a valuation that factors in moderate profit growth of 7% over the past year. While the company’s return on equity (ROE) remains robust at 16.48%, indicating efficient management, this has not translated into commensurate share price appreciation.
Balance Sheet and Shareholding Structure
Wipro’s balance sheet remains conservative, with an average debt-to-equity ratio of zero, signalling a debt-free position that reduces financial risk. The majority shareholding is held by promoters, providing stability in ownership structure. However, the stock’s recent price action suggests that market participants are weighing these positives against the company’s subdued growth and valuation concerns.
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Summary of Key Metrics
To summarise, Wipro Ltd. currently trades at Rs.206.6, its lowest level in 52 weeks, reflecting a 32.54% decline over the past year. The stock’s performance contrasts sharply with the Sensex’s 10.65% gain during the same period. The company’s operating profit growth remains modest at 5.44% annually over five years, with recent quarterly results showing flat trends. Despite a strong ROE of 16.48% and a debt-free balance sheet, valuation premiums and below-par profitability ratios have weighed on the stock’s price.
Wipro’s dividend yield of 5.24% remains a notable feature, offering income potential at current prices. However, the stock’s position below all major moving averages and its downgrade to a Sell rating by MarketsMOJO on 17 Feb 2026 underscore the challenges faced by the company in regaining upward momentum.
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