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Check Before You Invest : Wipro Ltd

BSE: 507685 NSE: WIPRO ISIN: INE075A01022
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does Wipro Ltd belong to?
Wipro Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is Wipro Ltd a good quality company?
Wipro Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Wipro Ltd undervalued or overvalued?
Wipro Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Wipro Ltd a good buy now?
Wipro Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Wipro Ltd?
Wipro Ltd revenue growth is -0.8% for FY-2025 , which is below its 5 year CAGR of 7.8% , indicating slower growth.
Q.2 Gross Profit margin of Wipro Ltd?
Wipro Ltd Gross profit margin which is the profit after deduction of direct costs, is 22.9% for FY-2025 , which is in line with its 5 year median of 22.9% , indicating stable margins.
Q.3 Operating Profit Margin of Wipro Ltd?
Wipro Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 20.18% for FY-2025 , which is in line with its 5 year median of 20.18% indicating stable margins.
Q.4 Net Profit Margin of Wipro Ltd?
Wipro Ltd Net Profit Margin is 14.84% for FY-2025 , is in line with with its 5 year median of 14.84%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 22.9 22.9
Operating Profit Margin 20.18 20.18
Net Profit Margin 14.84 14.84
Q.5 Return on Asset of Wipro Ltd?
Wipro Ltd Return on Asset is 10.9%, which is in line with its 5 year historical median of 10.9%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Wipro Ltd?
Wipro Ltd Return on equity is 16.99% for FY-2025 , which is in line with its historical median of 16.99%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Wipro Ltd?
Wipro Ltd Return on capital employed is 20.27% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Wipro Ltd?
Wipro Ltd Cash conversion cycle is 11 days, above its historical median of 11 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.73 0.78
ROE 16.99 16.99
ROCE 20.27 20.27
Cash Conversion Cycle 11 days 11 days
Q.9 Debt to Equity ratio of Wipro Ltd?
Wipro Ltd Debt-to-Equity ratio is 0.20 , which is above with the industry average of 0.03 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Wipro Ltd?
Wipro Ltd Debt to cash flow from operations is 0.96 , which is at a healthy level, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Wipro Ltd?
Promoters hold 72.63% of the Wipro Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Wipro Ltd vs industry peers?
Wipro Ltd revenue CAGR is 7.82% , compared to the industry median CAGR of 11.32% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 89,088.4 1,17,927.7
Gross Profit 20,401.2 27,851.9
Operating Profit 17,930 25,544
Net Profit 13,218 17,737.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.73 1.28
ROE 16.99 26.41
ROCE 20.27 35.53
Cash Conversion Cycle (days) 10.84 44

Valuation & price assessment

Q.1 Stock return of Wipro Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 6.4% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 6.4% -0.6% 3.3% -15.4%
Q.3 Valuation ratios of Wipro Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 16.05 15.98 22.96
Price to Book 2.4 2.70 2.61
Price to Sales 2.34 2.54 4.40
EV to EBITDA 9.79 9.80 17.20

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