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Wipro Ltd.

Large Cap

Evaluated by 4037 users |

BSE

: 507685 |

NSE

: WIPRO |

IT - Software

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Consolidated basis
The valuation guidance of this company is based on Consolidated basis.
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Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
10 Year X-Ray
MoneyWorks4me Colour Coding
Value Creation To be investment worthy, a company has to create a shareholder value in excess of its cost of capital employed. VCI (Value Creation Index) shows how efficient has the company been in doing this.
Value Creation Index: Colour Rating Guide
  • >0.25 : Very Good
  • 0 to 0.25 : Somewhat Good
  • <0: Not Good
 Mar'04Mar'05Mar'06Mar'07Mar'08Mar'09Mar'10Mar'11Mar'12Mar'13
Return on Capital Employed
The return on capital employed gives a sense of how well a company is using its money to generate returns.
27.22%35.1%33.88%35.09%25.8%23.82%21.57%20.57%18.42%18.18%
Value Creation Index
The difference between ROCE and WACC as a Proportion of WACC reveals the extent of value created by a company.
Ie. (ROCE-WACC)/WACC
ROCE is Return on Capital Employed
WACC is Weighted Average Cost of Capital
2.531.381.621.891.331.631.400.900.64NA
Growth Parameters Growth Parameters help gauge a company's growth in the past 10 years. A value creating company needs to grow at a sustainable pace to continue creating value.
For Net Sales and EPS Growth Rate
  • >12% : Very Good
  • 8% to 12% : Somewhat Good
  • <8% : Not Good
For Debt To CFO
  • 0 to <1.5 : Very Good
  • 1.5 to <3 : Somewhat Good
  • >3 or <0: Not Good
Net Sales (Rs. Cr.)
Net Sales is calculated by deducting excise duty, sales tax and other such deductible indirect taxes from the gross sales of a company.
5,8408,16110,60314,99819,98025,70027,21331,03937,18837,430
Y-o-Y Gr. Rt.-39.7%29.9%41.5%33.2%28.6%5.9%14.1%19.8%0.7%
Adjusted EPS (Rs.)
Adjusted Earning per Share is the company’s net profit per share after adjusting for extra-ordinary/exceptional items
4.326.98.591213.3816.641921.4121.8223.57
Y-o-Y Gr. Rt.-59.7%24.5%39.7%11.5%24.4%14.2%12.7%1.9%8%
Book Value per Share (Rs.)
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
16.1322.3727.5739.0847.2554.9173.9191.56109.57107.68
Adjusted Net Profit Adjusted Net Profit is a measure of company's profitability after accounting for all costs and adjusting for one time events. 1,0071,6192,0412,9173,2594,0634,6475,2515,3625,802
Net Op. Cash Flow (Rs. Cr.)
This refers to the amount of cash a company generates from the revenues less operating expenses.
1,0031,8101,9562,8052,3063,6105,1004,0444,0096,394
Debt to Cash Flow from Ops
Debt to CFO (Cash Flow from Operations) conveys the number of years it will take for a company to repay its debt, given the cash generated from operations.
CFO: It is the amount of cash generated by the company through its core business operations without looking at the impact of its capital structure. It indicates whether the company is able to generate sufficient cash from its operations to maintain and run its operations.
0.110.030.040.141.951.581.231.311.471
CAGR
The Growth rate helps you understand how the company has performed over different time frames.
CAGR Colour Code Guide
CAGR Colour Code Guide
  • >12% : Very Good
  • 8% to 12% : Somewhat Good
  • <8% : Not Good
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales
Net Sales is calculated by deducting excise duty, sales tax and other such deductible indirect taxes from the gross sales of a company.
22.9%13.4%11.2%0.7%
Adjusted EPS
Adjusted Earning per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
20.8%12%7.5%8%
Book Value per Share
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
23.517.913.4-1.7
Key Financial Parameter The key financial ratios show the growth and sustainability of the Value Creation Index.
Performance Ratios: Colour Rating Guide
  • >12% : Very Good
  • 8% to 12% : Somewhat Good
  • <8% : Not Good
Debt to Equity Colour Rating Guide
  • 0 to 1 : Very Good
  • >1 to 2 : Somewhat Good
  • >2 or <0: Not Good
Return on Equity (%)
Return on Equity shows the amount of net profit generated as a percentage of shareholders equity. 
ROE measures a company's profitability over the money shareholders have invested. 
27.8435.8334.3135.9930.632.0929.1625.7821.6621.66
Operating Profit Margin (%)
Operating Profit Margin shows how much profit a company makes (before interest payment and taxes) on sales. It is advisable to look at the change in a company’s operating margin over time and compare the company's yearly or quarterly numbers to those of its competitors.
21.7725.1423.9422.9119.9920.1721.8620.7718.9120.46
Net Profit Margin (%)
NPM (Net Profit Margin) is the ratio of profit, net of taxes and interests to sales. It is advisable to look at changes in a company’s NPM over time and to compare them with the competitor’s NPM.
17.319.7318.9819.2516.1515.7116.9416.8314.415.59
Debt to Equity
This ratio indicates the ratio of equity to debt the company employs to finance its operating assets.
0.030.010.010.040.390.420.350.240.220.24
Working Capital Days
This is the number of days that a company will take to convert its working capital into revenue.
1109297102115126146154160176
Cash Conversion Cycle
Cash Conversion Cycle is a company's net working capital (creditors, debtors and inventory) expressed in terms of days
4343484141403820118
Management Assessment
Management Assessment
An assessment of the trustworthiness of the management based on 5 important parameters. These parameters are colour coded as
Green (Very Good), Orange (Somewhat Good) and Red (Not Good)
What do we look at?
Management Assessment: An assessment of the trustworthiness of the management based
on 5 important parameters. These parameters are colour coded as Green (Very Good),
Orange (Somewhat Good) and Red (Not Good)
Corporate Governance
Corporate Governance
This refers to a set of processes or laws that affects the way a company is directed and controlled.
Board Credentials
Board credentials
This refers to the skill sets (qualification, experience, etc.) that the management team of a company possesses.
Promoter's holding
Promoter's holding
This refers to the stake that the promoters hold in a company and proportion of shares pledged.
Transparency
Transparency
Transparency refers to the practices that a company follows in the disclosure of important and necessary information.
Integrity
Integrity
Integrity refers to the application of honest and fair business practices.

Percentage Holding
73.47%
13.62%
10.97%
1.94%

Pledged *0.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.000.00
*  Pledged shares as % of Promoter's holding (%)

Considering the significant contribution to revenues from its subsidiaries, the 10 YEAR X-RAY of Wipro Limited has been done taking in to account its consolidated results.

The performance of the company over the past 10 years has been good in all the concerned parameters. Over the past 5 years, sales, EPS and BVPS have grown at robust CAGRs of 24%, 20% and 27%. However, in FY10 and FY11, the sales and EPS growth has slowed down when compared to earlier years.

... Read more

Considering the significant contribution to revenues from its subsidiaries, the 10 YEAR X-RAY of Wipro Limited has been done taking in to account its consolidated results.

The performance of the company over the past 10 years has been good in all the concerned parameters. Over the past 5 years, sales, EPS and BVPS have grown at robust CAGRs of 24%, 20% and 27%. However, in FY10 and FY11, the sales and EPS growth has slowed down when compared to earlier years.

Return ratios: -The company has made good use of its capital over the years indicated by the ROIC and ROE number averaging 26% and 31% respectively over the past 6 years. However, the declining trend of both these numbers is a cause of concern.

Margins performance: -

The company has managed to maintain good and fairly consistent level of OPM and NPM. When compared to peers like TCS and Infosys, these margins do not look impressive. One possible reason for this is the involvement of Wipro in the consumer care and lighting which is a comparatively low margin business.

When compared to TCS and Infosys the company’s working capital management does not appear to be quite good. But this is because Wipro, along with the IT business is also involved in the consumer care and lighting business and hence it requires more working capital than its IT peers. However, the rising trend of working capital and net working capital days is something the company should keep a check on. The company is comfortably placed as far as debt is concerned as debt raised by it is at manageable levels.

On the whole, the 10 YEAR X-RAY performance of the company appears to be GREEN (Very Good).

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