[Infographics] Wipro Stock | 8 Fundamental Explanation On Why Wipro Is Important in Investment

Wipro is a leading global information technology, consulting, and business process services company. The company harness the power of cognitive computing, hyper-automation, robotics, cloud, analytics, and emerging technologies to help its clients adapt to the digital world and make them successful.

A company recognized globally for its comprehensive portfolio of services, a strong commitment to sustainability, and good corporate citizenship.

The company began its business as a vegetable oil manufacturer in 1945 at Amalner, a small town in Western India, and thereafter, forayed into soaps and other consumer care products. During the early 1980s, it entered the Indian IT industry by manufacturing and selling mini computers.

In the 1990s, the company leveraged its hardware R&D design and software development expertise and began offering software services to global clients. In 2013, it demerged the non-IT Diversified Businesses. With a track record of several years in IT Services, the company is focused entirely on the global Information Technology business.

Wipro is listed on National Stock Exchange and Bombay Stock Exchange in India and New York Stock Exchange in the US.

The business area of the company

The Company is engaged in IT Software, Services, and related activities.

Service Offerings

  • Data, Analytics & AI
  • Applications
  • Digital Operations and Platforms
  • Consulting
  • Infrastructure Services

Wipro Stock Today

WIPRO LTD
WIPRO.NS
₹ 559.80
0.19688125%
Marketcap
3.06T
Volume
₹ 5,601,177.00
Shares
5,466,420,224
Range
₹ 554.60 - ₹ 565.50
52 Week Range
₹ 461.10 - ₹ 739.85
WIPRO LTD
sector
Technology
industryInformation Technology Services
addressDoddakannelli, Bengaluru, India
countryIndia
phone91 80 2844 0011
websitehttps://www.wipro.com
WIPRO LTD
₹ 559.80
Open ₹ 560.00
High ₹ 565.50
Marketcap 3.06T
Close ₹ 559.80
Low ₹ 554.60
Volume ₹ 5,601,177.00

Wipro Stock Chart

Wipro stock Index presence

NIFTYITNIFTY100NIFTYSERVICE
NIFTYALLO30NIFTY200NIFTY500
NV20BSEITNFTQTLO30
BSE500ALLCAPBSE100
LRGCAPSPBSQIPCARBONEX
S&PDIVSTABLENIFTYALPHASHA500
NIFTYEQWGTNIFTY50NIFTY100WEIGHT
NIFTYLGEMID250NFTALQLV30NT100LOW30
NT100ALP30SNSX50NIFTYLOWVOL
BSE200BSE100LARGECAPTMCTECK
SPBSMOIPESG100SPBSLVIP
S&PLARGEMIDCAP  

Wipro Infographics

Wipro Infographics
Wipro Infographics by Kamlesh Rode created in figma.com

Wipro Overview

Wipro Infographics - overview
Wipro Infographics – overview

Key takeaways

  • Intrinsic value is high than the current price of the stock.
  • This stock had given higher returns than fixed-deposits.
  • Very low dividend return given by this stock
  • This stock is not in ASM/GSM list
PE RatioSector PEPB RatioSector PBDividend YieldSector Div Yld
36.3741.977.1310.10.14%1.03%

Read more about PE ratio with infographics | Read more about dividend and dividend yield with infographics

Financials of Wipro

wipro Infographics - financials
wipro Infographics – financials

Income Table

Financial YearFY 2019FY 2020FY 2021
Total Revenue61,632.7063,865.5064,338.60
EBITDA14,226.4015,070.2017,175.10
PBIT12,279.7012,984.7014,411.70
PBT11,542.2012,251.9013,902.90
Net Income9,003.709,722.3010,796.40
EPS14.9216.5519.29
DPS111
Payout ratio0.070.060.05
EPS and DPS in ₹. Other numbers except for Payout Ratio in ₹ cr

Income Statement

Lower than Industry Revenue Growth

Over the last 5 years, revenue has grown at a yearly rate of 3.57%, vs industry avg of 8.74%

Lower than Industry Net Income

Over the last 5 years, net income has grown at a yearly rate of 3.92%, vs industry avg of 7.27%

Decreasing Market Share

Over the last 5 years, market share decreased from 15.55% to 12.39%

Balance Sheet Table

Financial YearFY 2018FY 2019FY 2020FY 2021
Current Assets50,615.6057,190.6051,985.1052,318.60
Non Current Assets24,775.2025,395.8029,014.5030,247.20
Total Assets75,390.8082,586.4080,999.6082,565.80
Current Liabilities20,729.5021,435.0021,639.3023,004.00
Non Current Liabilities6,494.004,465.103,851.104,511.00
Total Liabilities27,223.5025,900.1025,490.4027,515.00
Total Equity48,167.3056,686.3055,509.2055,050.80
Total Liabilities & Shareholder’s Equity75,390.8082,586.4080,999.6082,565.80
Total Common Shares Outstanding603.17603.39571.34547.91
Shares outstanding numbers in cr. Other numbers in ₹ cr

Balance Sheet

Higher than Industry Debt to Equity Ratio

Over the last 5 years, debt to equity ratio has been 22.07%, vs industry avg of 11.44%

Lower than Industry Current Ratio

Over the last 5 years, current ratio has been 242.7%, vs industry avg of 265.49%

Cash Flow Table

Financial YearFY 2018FY 2019FY 2020FY 2021
Net Change in Cash-979.211,759.90-1,442.102,555.90
Changes in Working Capital-2,898.20201.6-3,024.00-199.3
Capital Expenditures2,187.002,278.102,349.701,957.70
Free Cash Flow6,236.309,353.507,714.6012,797.30
All numbers in ₹ cr

Cash Flow Statement

Lower than Industry Free Cash Flow Growth

Over the last 5 years, free cash flow growth has been 14.54%, vs industry avg of 22.01%

Peers of Wipro

Wipro Infographics - Peers
Wipro Infographics – Peers
StockPE RatioPB RatioDividend Yield
Wipro Ltd36.377.130.14%
Tata Consultancy Services Ltd43.5516.211.00%
Infosys Ltd41.1110.361.44%
HCL Technologies Ltd32.295.990.75%

Key takeaways

  • TCS have highest PE ratio than Wipro.
  • PB ratio of TCS is higher than peers.

Read more about PE ratio with infographics and Dividend infographics

Wipro Shareholdings

Wipro Infographics - shareholding
Wipro Infographics – shareholding

Promoter Holdings Trend

Total Promoter Holding

In last 6 months, promoter holding in the company has almost stayed constant

Low Pledged Promoter Holding

Pledged promoter holdings is insignificant

Institutional Holdings Trend

Mutual Fund Holding

In last 3 months, mutual fund holding of the company has almost stayed constant

Foreign Institutional Holding

In last 3 months, foreign institutional holding of the company has almost stayed constant

InvestorsDec-18Mar-19Jun-19Sep-19Dec-19Mar-20Jun-20Sep-20Dec-20Mar-21Jun-21Sep-21
Promoters74.373.8573.8374.0474.0474.0474.0274.0274.0173.0273.0273.02
FIIs9.278.938.248.358.428.457.848.398.469.219.839.69
DIIs6.786.56.866.9777.027.616.496.086.165.692.05
Public9.1910.2610.6410.210.1110.0910.1310.7211.0911.2511.1114.92
Others0.470.450.430.430.430.40.390.380.360.350.340.32

Wipro Dividend/Split

Wipro Infographics - Dividend
Wipro Infographics – Dividend

Dividend table

Cash DividendDividend/ShareEx Date
Interim₹1.0022-Jan-21
Cash DividendDividend/ShareEx Date
Interim₹1.0024-Jan-20
Cash DividendDividend/ShareEx Date
Interim₹1.0029-Jan-19
Cash DividendDividend/ShareEx Date
Interim₹1.0031-Jan-18
Cash DividendDividend/ShareEx Date
Interim₹2.002-Feb-17

Stock Split table

BuybackRatioEx Date
Tender Offer10-Dec-20
BuybackRatioEx Date
Tender Offer20-Jun-19
BonusRatioEx Date
1:3 Bonus Issue of Equity Shares1:036-Mar-19
BuybackRatioEx Date
Tender Offer14-Sep-17
BonusRatioEx Date
1:1 Bonus Issue of Equity Shares1:0113-Jun-17
BuybackRatioEx Date
Tender Offer5-May-16
DemergerRatioEx Date
11-Apr-13

Read more about dividend and dividend yield with infographics

Strength and Limitations

Strength

The company has an effective cash conversion ratio of 126.51.

Limitations

The company has delivered poor Income growth of 4.00% over the past 3 years.

Expert Forecast

Wipro Infographics - Expert Forecast
Wipro Infographics – Expert Forecast

The stock forecast of Wipro stock for the year 2023

HIGH

Rs.828

MEDIAN

Rs.690

LOW

Rs.478

Future stock price targets of Wipro stock

Target of WiproFuture Stock Price
2023720 to 750
2025950 to 1000
20301950 to 2000
20353800 to 4000
20407000 to 8000

Please Note

All the views and contents mentioned in this blog are merely for educational purposes and are not recommendations or tips offered to any person(s) with respect to the purchase or sale of the stocks/futures. I do not accept any liability/loss accruing from the use of any content from this blog. All readers of this blog must rely on their own discretion and neither any analyst nor any publisher shall be responsible for the outcome.

Stock Forecast Predictions

Wipro Infographics - Predictions
Wipro Infographics – Predictions

With the calculations on the basis of CAGR, the long-term investment in Wipro stock comes very amazing numbers. Look at the table below (Investment value 7200)

Prediction of Wipro StockFuture Investments
After 1 yearRs.9496
5 yearRs.28744
10 yearRs.114757
15 yearRs.458146
20 yearRs.1829061
25 yearRs.7302177
Future values are calculated using 31.9% CAGR (Wipro)

Conclusion

Before going to conclusion let’s look at

Wipro case study “How Rs.10000 turns into whopping Rs.1722 crores?”

Wipro Investment Growth (Stock split and Bonus)

YearActionNo. of StocksFace value(Rs.)
1980Initial Investment100100
19811:1 Bonus200100
19851:1 Bonus400100
1986Stock spilts to the Face value of Rs.10400010
19871:1 Bonus800010
19891:1 Bonus1600010
19921:1 Bonus3200010
19951:1 Bonus6400010
19972:1 Bonus19200010
1999Stock spilts to the Face value of Rs.29600002
20042:1 Bonus28800002
20051:1 Bonus57600002
20102:3 Bonus96000002
20172:1 Bonus192000002
20191:3 Bonus256000002

In the above table if one has invested Rs.10000 in the year of 1980 today he could have 1722 crores investment. Yes, you read right. This is the power of stock split, bonus, and compounding.

Wipro is very fundamentally strong stock and highly given return on investment in long term. The above case study gets viral and femous in the investment world.

Let’s look at the important metrics of Wipro stock.

PE RatioSector PEPB RatioSector PBDividend YieldSector Div Yld
36.3741.977.1310.10.14%1.03%

Check Wipro on NSE Site

Frequently Asked Questions

Que: Is Wipro a good investment?

Ans: Yes, Wipro is always a good stock for future investments. This stock had a history of stock split and bonus due to which its case study of “Rs.10000 to 1772 crore” is viral nowadays.

Que: Is Wipro overvalued?

Ans: If we look at the fundamentals, Wipro is doing quite well and promoters have decreased their shareholding which means it is a golden opportunity to invest for the long term in Wipro.

Que: What is the target of Wipro share in 2023?

Ans: As per expert calculations this stock can reach up to 850+ levels in the next upcoming year.

Que: What is the target of Wipro share in 2025?

Ans: This stock can break 950 to 1000 up to 2025.

Que: What is the future Wipro?

Ans: Premji said Wipro would focus on Digital, Cloud, Engineering Services & Cyber Security and Leading Edge Technologies: He said the company has identified four technologies that will lead them into the future, which include Digital, Cloud, Engineering Services and Cyber Security.

Why Stock forecast by Kamlesh Rode?

Please rate our post to motivate us!
Sharing Is Caring:

“I love to help people in technology, spirituality and always want people to get better in their lives. Today I’m a stock market enthusiast, a stock trader, web-mobile app developer, blogger, and a spiritual being.”

Leave a Comment

INDIAN OIL CORP 
₹ 127.75  ₹ 1.70  1.35%  
ASIAN PAINTS LTD 
₹ 3,084.00  ₹ 44.65  1.43%  
BAJAJ FINANCE LTD 
₹ 7,315.05  ₹ 40.55  0.56%  
WIPRO LTD 
₹ 559.80  ₹ 1.10  0.20%  
TATA STEEL LTD 
₹ 1,316.05  ₹ 4.20  0.32%  
BHARTI AIRTEL LTD 
₹ 739.90  ₹ 1.75  0.24%  
Macrotech Developers Ltd 
₹ 1,134.00  ₹ 3.95  0.35%  
DR REDDYS LABS 
₹ 4,302.00  ₹ 70.35  1.61%  
STATE BK OF INDIA 
₹ 517.70  ₹ 4.85  0.95%  
MARUTI SUZUKI IND 
₹ 7,445.00  ₹ 173.35  2.28%  
GRASIM INDUSTRIES 
₹ 1,763.80  ₹ 8.30  0.47%  
NESTLE INDIA 
₹ 18,281.00  ₹ 136.80  0.74%  
TATA MOTORS LTD. 
₹ 431.50  ₹ 6.80  1.55%  
TATA CONSULTANCY S 
₹ 3,664.95  ₹ 26.15  0.71%  
SUN PHARMACEUTICAL 
₹ 935.25  ₹ 13.95  1.51%  
RELIANCE INDS 
₹ 2,551.90  ₹ 9.15  0.36%  
ADANI PORT SPECIAL 
₹ 838.15  ₹ 6.75  0.80%  
NTPC LTD 
₹ 153.90  ₹ 1.30  0.85%