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Wipro Ltd

NSE: WIPRO BSE: 507685

197.45

(1.17%)

Sat, 23 May 2026, 05:15 pm

Wipro Analysis

dividend

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Pros

  • Dividends paid are thoroughly covered by earnings (16.7x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
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Cons

  • Dividends per share have fallen over the past 10 years.
  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Wipro's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Wipro's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Performance (ROE) is expected to be above the current IN IT industry average.
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Cons

  • Cash flow for Wipro is expected to increase but not above the 50% threshold in 2 years time.
  • Wipro's earnings are expected to grow by 1% yearly, however this is not considered high growth (20% yearly).
  • Wipro's earnings growth is positive but not above the India market average.
  • Wipro's earnings growth is positive but not above the low risk savings rate of 7.2%.
  • Wipro's earnings are expected to decrease over the next year.
  • Wipro's earnings are expected to increase but not above the low risk growth rate in 3 years time
  • Wipro's net income is expected to decrease over the next 2 years.
  • Wipro is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • A decline in Wipro's performance (ROE) is expected over the next 3 years.
  • Wipro's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Wipro's revenue is expected to grow by 2.6% yearly, however this is not considered high growth (20% yearly).
  • Wipro's revenue growth is positive but not above the India market average.

health

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Pros

  • Wipro is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Wipro is profitable, therefore cash runway is not a concern.
  • Wipro is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (129%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 6.7x debt.
  • Wipro's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (18.1% vs 14% today).
  • Wipro earns more interest than it pays, coverage of interest payments is not a concern.
  • Wipro's level of debt (14%) compared to net worth is satisfactory (less than 40%).
  • Low level of unsold assets.
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Cons

    management

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    Pros

    • The tenure for the Wipro management team is about average.
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    Cons

    • The average tenure for the Wipro board of directors is less than 3 years, this suggests a new board.
    • Wipro individual insiders have only sold shares in the past 3 months.

    past

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    Pros

    • Wipro's 1-year earnings growth exceeds its 5-year average (7.9% vs 1.4%)
    • Wipro's year on year earnings growth rate has been positive over the past 5 years.
    • Wipro used its assets more efficiently than the IN IT industry average last year based on Return on Assets.
    • Wipro has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
    • Wipro's earnings growth has exceeded the IN IT industry average in the past year (7.9% vs 6%).
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    Cons

    • Wipro has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

    value

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    Pros

    • BSE:507685 is up 15.8% outperforming the IT industry which returned 8.5% over the past month.
    • BSE:507685 is up 15.8% outperforming the market in India which returned 8% over the past month.
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    Cons

    • Wipro's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Wipro's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Wipro is overvalued based on assets compared to the IN IT industry average.
    • Wipro is poor value based on expected growth next year.
    • Wipro is overvalued based on earnings compared to the IN IT industry average.
    • Wipro is overvalued based on earnings compared to the India market.
    • 507685 underperformed the IT industry which returned -10.1% over the past year.
    • 507685 underperformed the Market in India which returned -14.5% over the past year.

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