Wipro Ltd. (WIPRO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

HCL Technologies

Infosys

Persistent Syste

LTI Mindtree

Tech Mahindra

Coforge

Mphasis

Wipro

TCS

Hexaware Tech.

L&T Technology

Why is Wipro Ltd. ?

High Management Efficiency with a high ROE of 16.48%

Company has a low Debt to Equity ratio (avg) at 0 times

Poor long term growth as Operating profit has grown by an annual rate 5.44% of over the last 5 years

Flat results in Dec 25

DEBTORS TURNOVER RATIO(HY) Lowest at 7.56 times
OPERATING PROFIT TO NET SALES (Q) Lowest at 18.24%
PBT LESS OI(Q) Lowest at Rs 3,128.60 cr.

With ROE of 15.8, it has a Very Attractive valuation with a 2.9 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -22.00%, its profits have risen by 7% ; the PEG ratio of the company is 2.7
At the current price, the company has a high dividend yield of 7.2

Majority shareholders : Promoters

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 9.44% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -22.00% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Wipro should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Wipro for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Wipro

-22.13%

-0.88

25.27%

Sensex

8.51%

0.75

11.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.15%

EBIT Growth (5y)

5.44%

EBIT to Interest (avg)

14.97

Debt to EBITDA (avg)

0.99

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

0.94

Tax Ratio

23.46%

Dividend Payout Ratio

47.83%

Pledged Shares

Institutional Holding

18.87%

ROCE (avg)

28.74%

ROE (avg)

16.48%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.88

EV to EBIT

14.46

EV to EBITDA

12.07

EV to Capital Employed

4.18

EV to Sales

2.33

PEG Ratio

2.74

Dividend Yield

7.23%

ROCE (Latest)

29.63%

ROE (Latest)

15.77%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

ROCE(HY)

Highest at 18.92%

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 13,083.70 cr

DEBT-EQUITY RATIO(HY)

Lowest at 0.19 times

NET SALES(Q)

Highest at Rs 23,555.80 cr

-6What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.56 times

OPERATING PROFIT TO NET SALES (Q)

Lowest at 18.24%

PBT LESS OI(Q)

Lowest at Rs 3,128.60 cr.

PAT(Q)

At Rs 3,119.00 cr has Fallen at -7.0%

EPS(Q)

Lowest at Rs 2.97

Loading Valuation Snapshot...

Here's what is working for Wipro

Net Sales - Quarterly

Highest at Rs 23,555.80 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 13,083.70 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Lowest at 0.19 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Wipro

Operating Profit Margin - Quarterly

Lowest at 18.24%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 3,128.60 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 3,128.60 cr has Fallen at -9.29%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 3,119.00 cr has Fallen at -7.0%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is negative

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 2.97

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debtors Turnover Ratio- Half Yearly

Lowest at 7.56 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio