Wipro Ltd. Stock Falls to 52-Week Low of Rs.208.4 Amidst Continued Underperformance

Stock Price Movement and Market Context

On 20 Feb 2026, Wipro’s share price reached Rs.208.4, the lowest level recorded in the past year. This new low comes after two consecutive days of declines, although the stock showed a modest gain following this period. The price is notably below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained downward trend in the short to long term.

In contrast, the broader market, represented by the Sensex, experienced a sharp recovery after a negative start, closing at 82,877.60 points, up 0.46% for the day. The Sensex remains within 3.96% of its 52-week high of 86,159.02, supported by gains in mega-cap stocks. This divergence highlights Wipro’s relative underperformance amid a generally positive market environment.

Performance Metrics and Financial Indicators

Wipro’s one-year stock performance stands at -32.62%, significantly lagging behind the Sensex’s 9.44% gain over the same period. The stock’s 52-week high was Rs.316.5, underscoring the extent of the decline. Over the last five years, the company’s operating profit has grown at a modest annual rate of 5.44%, a factor contributing to the cautious market sentiment.

Quarterly financials reveal further pressures. The operating profit to net sales ratio is at a low 18.24%, while the profit before tax (PBT) excluding other income has fallen by 9.29% to Rs.3,128.60 crore. Additionally, the debtors turnover ratio for the half-year period is at 7.56 times, the lowest recorded, signalling potential inefficiencies in receivables management.

Long-Term and Relative Performance

Wipro’s performance over the last three years and one year has been below the BSE500 benchmark, reflecting persistent challenges in maintaining competitive growth. The company’s Mojo Score currently stands at 47.0, with a Mojo Grade of Sell, downgraded from Hold on 17 Feb 2026. This rating reflects the market’s assessment of the company’s growth prospects and financial health.

Market capitalisation metrics also indicate a Grade 1 status, suggesting limited market cap strength relative to peers. Despite these concerns, Wipro maintains a high dividend yield of 5.21% at the current price level, which remains attractive for income-focused investors.

Balance Sheet and Valuation Insights

On the positive side, Wipro exhibits strong management efficiency, with a return on equity (ROE) of 16.48%, signalling effective utilisation of shareholder funds. The company’s average debt-to-equity ratio is effectively zero, indicating a conservative capital structure with minimal leverage.

Valuation metrics show a price-to-book value of 2.6, which is higher than the average historical valuations of its peers. The company’s PEG ratio stands at 2.5, reflecting the relationship between its price-to-earnings ratio and earnings growth rate. Over the past year, profits have increased by 7%, despite the stock’s negative return, highlighting a disconnect between earnings growth and share price performance.

Shareholding and Sector Position

The majority shareholding in Wipro remains with promoters, providing a stable ownership structure. The company operates within the Computers - Software & Consulting sector, which has seen mixed performance in recent months. While the sector overall has shown resilience, Wipro’s relative underperformance has been notable.

Despite the current price weakness, the stock’s high dividend yield of 5.21% remains a key feature, reflecting the company’s commitment to returning value to shareholders through dividends.

Summary of Key Financial and Market Data

To summarise, Wipro Ltd. has experienced a significant decline to Rs.208.4, its 52-week low, amid a backdrop of subdued profit growth, lower operating margins, and underwhelming turnover ratios. The stock’s downgrade to a Sell grade and its position below all major moving averages underscore the challenges faced. However, strong management efficiency, low leverage, and a high dividend yield provide some counterbalance to the prevailing market sentiment.

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