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Last Updated on: 21 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 507685 | NSE: WIPRO

Wipro Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:13 pm

Market Cap 2,91,669 Cr.
Current Price 557
High / Low583/393
Stock P/E24.8
Book Value 156
Dividend Yield0.18 %
ROCE16.9 %
ROE14.3 %
Face Value 2.00
PEG Ratio14.94

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Wipro Ltd

Competitors of Wipro Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IDream Film Infrastructure Company Ltd 1.41 Cr. 93.899.0/85.0 2950.00 %%% 10.0
IB Infotech Enterprises Ltd 23.4 Cr. 182245/11030.7 16.80.55 %69.9 %50.5 % 10.0
Hit Kit Global Solutions Ltd 6.54 Cr. 1.411.41/0.5820.4 2.080.00 %1.92 %1.94 % 2.00
Globalspace Technologies Ltd 59.5 Cr. 17.327.0/16.2180 11.20.00 %%% 10.0
First Fintec Ltd 8.64 Cr. 8.3010.9/4.51 10.20.00 %2.41 %1.77 % 10.0
Industry Average39,977.65 Cr703.7691.08122.740.67%18.02%18.80%6.94

All Competitor Stocks of Wipro Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales18,46719,66920,31520,86121,52922,54023,22923,19022,83122,51622,20522,20821,964
Expenses14,27215,50016,13416,72417,67118,60818,69018,67118,62718,54618,00717,82817,614
Operating Profit4,1954,1694,1814,1363,8583,9324,5394,5194,2043,9704,1984,3814,350
OPM %23%21%21%20%18%17%20%19%18%18%19%20%20%
Other Income579505484502472512649632640740598653730
Interest75146140172204227290286309303312331329
Depreciation826772746734774797923847738897932840729
Profit before tax3,8733,7563,7793,7323,3523,4203,9754,0183,7983,5093,5523,8624,022
Tax %16%22%21%17%24%23%23%23%24%24%24%26%24%
Net Profit3,2482,9312,9723,0922,5592,6493,0653,0942,8862,6672,7012,8583,037
EPS in Rs5.925.355.425.634.684.855.565.605.235.075.165.425.74

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales37,43043,42446,95151,24455,44854,48759,01961,13861,93579,31290,48889,76088,893
Expenses29,77333,78836,65240,44844,12844,10047,40648,79547,16462,62873,64973,00871,995
Operating Profit7,6579,63510,29910,79611,32110,38711,61312,34214,77116,68416,83916,75216,898
OPM %20%22%22%21%20%19%20%20%24%21%19%19%19%
Other Income1,4401,9222,4502,7522,6232,5502,6142,7282,4042,0672,2752,6312,720
Interest2893833505585945837387335095321,0081,2551,275
Depreciation9401,0601,1751,4962,3102,1121,9472,0862,7633,0783,3403,4073,398
Profit before tax7,86910,11411,22411,49411,03910,24211,54212,25213,90315,14114,76614,72114,945
Tax %21%21%22%22%23%22%22%20%22%19%23%25%
Net Profit6,1827,9918,7148,9578,5188,0039,0189,77210,86812,24311,36611,11211,263
EPS in Rs9.3612.0813.1513.5213.1013.2714.9217.0219.7022.3120.6821.1421.39
Dividend Payout %28%25%34%17%6%6%7%6%5%27%5%5%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)29.26%9.05%2.79%-4.90%-6.05%12.68%8.36%11.22%12.65%-7.16%-2.23%
Change in YoY Net Profit Growth (%)0.00%-20.21%-6.26%-7.69%-1.14%18.73%-4.32%2.85%1.44%-19.82%4.93%

Wipro Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:8%
5 Years:9%
3 Years:13%
TTM:-3%
Compounded Profit Growth
10 Years:3%
5 Years:4%
3 Years:0%
TTM:1%
Stock Price CAGR
10 Years:10%
5 Years:18%
3 Years:-5%
1 Year:39%
Return on Equity
10 Years:18%
5 Years:17%
3 Years:17%
Last Year:14%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:33 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital4924934944944869051,2071,1431,0961,0961,0981,0451,046
Reserves26,07231,63636,59845,65151,18447,02255,21654,17953,80564,30776,57073,48880,330
Borrowings6,3815,1597,89112,52214,24113,9019,9479,72410,45117,59317,46716,46519,282
Other Liabilities10,67512,24513,36712,92412,76113,56316,21715,95417,21324,28021,78923,61124,893
Total Liabilities43,62149,53358,35071,59078,67275,39182,58681,00082,566107,276116,924114,609125,552
Fixed Assets9,99610,64910,83717,27919,88618,12717,46522,06223,04037,99044,75743,62843,476
CWIP4073693953817381,3782,1421,8811,8531,602617723846
Investments6,7656,1465,53220,91529,91325,79722,88720,03218,77526,15433,07333,38443,970
Other Assets26,45432,36841,58633,01628,13530,09040,09337,02438,89841,53138,47736,87337,260
Total Assets43,62149,53358,35071,59078,67275,39182,58681,00082,566107,276116,924114,609125,552

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +6,3946,7907,8407,8879,2778,42311,63210,06414,75511,08013,06017,622
Cash from Investing Activity +-4,536-284-2,537-13,761-11,7703,5955,0653,593685-22,321-8,1691,144
Cash from Financing Activity +-1,140-3,570-830-159-2,275-12,998-4,937-15,100-12,8844,659-6,088-18,257
Net Cash Flow7172,9364,474-6,032-4,767-97911,760-1,4422,556-6,583-1,197509

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow1.004.003.00-2.00-3.00-3.002.003.004.00-1.00-1.000.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days757271716268626256535147
Inventory Days39285666
Days Payable572639671597
Cash Conversion Cycle-459-539-544-4616268626256535147
Working Capital Days24486560545729189333632
ROCE %24%29%27%23%19%17%19%20%22%21%18%17%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters73.02%73.01%73.00%73.00%72.96%72.94%72.92%72.91%72.93%72.90%72.89%72.82%
FIIs9.69%9.34%8.12%6.95%6.58%6.30%6.38%6.32%6.47%6.70%6.96%7.12%
DIIs2.05%2.77%3.24%3.43%7.96%7.84%8.01%7.56%8.03%8.13%8.28%8.25%
Public14.92%14.59%15.37%16.36%12.29%12.73%12.51%13.05%12.43%12.16%11.76%11.68%
Others0.32%0.29%0.27%0.25%0.21%0.19%0.18%0.16%0.14%0.13%0.11%0.11%
No. of Shareholders11,40,89313,18,77519,34,98624,01,89426,70,78527,65,51326,91,32927,79,43625,93,08725,21,36123,97,64823,69,089

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Nifty 50 ETF25,539,1860.711221.1610,071,3812024-11-20153.58%
SBI S&P BSE Sensex ETF18,057,6670.82862.810,071,3812024-11-2079.3%
Mirae Asset Large & Midcap Fund11,472,6881.65548.5710,071,3812024-11-2013.91%
Tata Digital India Fund10,071,3814.96481.5610,071,3812024-11-200%
Mirae Asset ELSS Tax Saver Fund7,119,6091.62340.4210,071,3812024-11-20-29.31%
UTI Nifty 50 ETF7,072,3280.71338.1610,071,3812024-11-20-29.78%
UTI S&P BSE Sensex ETF6,228,5940.82297.610,071,3812024-11-20-38.16%
SBI Long Term Equity Fund5,800,2321.38277.3410,071,3812024-11-20-42.41%
Tata Equity P/E Fund - Regular Plan5,400,0003.6258.210,071,3812024-11-20-46.38%
Tata Equity P/E Fund - Regular Plan - Trigger Option A 5%5,400,0003.6258.210,071,3812024-11-20-46.38%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)20.8920.7322.3719.1116.67
Diluted EPS (Rs.)20.8220.6822.3119.0716.63
Cash EPS (Rs.)27.8326.8127.9424.8620.75
Book Value[Excl.RevalReserv]/Share (Rs.)142.90141.63119.40100.4897.15
Book Value[Incl.RevalReserv]/Share (Rs.)142.90141.63119.40100.4897.15
Revenue From Operations / Share (Rs.)171.79164.88144.68113.04107.01
PBDIT / Share (Rs.)37.1434.8434.1931.3226.37
PBIT / Share (Rs.)30.6228.7528.5826.2822.72
PBT / Share (Rs.)28.2226.9227.6125.3521.44
Net Profit / Share (Rs.)21.3120.7222.3219.8117.10
NP After MI And SOA / Share (Rs.)21.1420.6822.3119.7017.02
PBDIT Margin (%)21.6221.1223.6327.7024.64
PBIT Margin (%)17.8217.4319.7523.2421.23
PBT Margin (%)16.4216.3219.0822.4220.03
Net Profit Margin (%)12.4012.5615.4217.5215.97
NP After MI And SOA Margin (%)12.3012.5415.4117.4315.90
Return on Networth / Equity (%)14.8114.6118.6919.6617.57
Return on Capital Employeed (%)17.8617.4620.4324.1021.76
Return On Assets (%)9.629.6811.3713.0411.96
Long Term Debt / Equity (X)0.080.070.080.010.01
Total Debt / Equity (X)0.180.190.230.120.10
Asset Turnover Ratio (%)0.770.700.730.680.68
Current Ratio (X)2.582.472.012.272.40
Quick Ratio (X)2.572.462.012.272.39
Dividend Payout Ratio (NP) (%)4.724.8226.825.057.05
Dividend Payout Ratio (CP) (%)3.613.7221.434.025.81
Earning Retention Ratio (%)95.2895.1873.1894.9592.95
Cash Earning Retention Ratio (%)96.3996.2878.5795.9894.19
Interest Coverage Ratio (X)15.4618.9735.2033.7320.56
Interest Coverage Ratio (Post Tax) (X)9.8712.2923.9822.3314.33
Enterprise Value (Cr.)255411.43206356.84329371.90216892.78103951.01
EV / Net Operating Revenue (X)2.852.284.153.501.70
EV / EBITDA (X)13.1610.7917.5712.646.90
MarketCap / Net Operating Revenue (X)2.792.224.093.661.84
Retention Ratios (%)95.2795.1773.1794.9492.94
Price / BV (X)3.372.584.964.132.03
Price / Net Operating Revenue (X)2.792.224.093.661.84
EarningsYield0.040.050.030.040.08

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Wipro Ltd as of November 21, 2024 is: 554.23

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 21, 2024, Wipro Ltd is Overvalued by 0.50% compared to the current share price 557.00

Intrinsic Value of Wipro Ltd as of November 21, 2024 is: 563.43

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 21, 2024, Wipro Ltd is Undervalued by 1.15% compared to the current share price 557.00

Last 5 Year EPS CAGR: 1.66%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 21.33%, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -128.50, which is a positive sign.
  3. The company has higher reserves (53,542.92 cr) compared to borrowings (12,386.46 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (62.54 cr) and profit (11.77 cr) over the years.
  1. The stock has a high average Working Capital Days of 38.75, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Wipro Ltd:
    1. Net Profit Margin: 12.4%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 17.86% (Industry Average ROCE: 18.02%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 14.81% (Industry Average ROE: 18.8%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 9.87
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.57
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 24.8 (Industry average Stock P/E: 91.08)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.18
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Wipro Ltd. is a Public Limited Listed company incorporated on 29/12/1945 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L32102KA1945PLC020800 and registration number is 020800. Currently Company is involved in the business activities of Providing software support and maintenance to the clients. Company’s Total Operating Revenue is Rs. 59574.40 Cr. and Equity Capital is Rs. 1096.40 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwareDoddakannelli, Sarjapur Road, Bengaluru Karnataka 560035info@wipro.com
http://www.wipro.com
Management
NamePosition Held
Mr. Rishad A PremjiExecutive Chairman
Mr. Azim H PremjiFounder Chairman
Ms. Tulsi NaiduIndependent Director
Mr. Deepak M SatwalekarIndependent Director
Dr. Patrick J EnnisIndependent Director
Mr. Patrick DupuisIndependent Director
Mr. Ireena VittalLead Independent Director
Mr. N S KannanIndependent Director
Mr. Srinivas PalliaManaging Director
Mr. P�ivi RekonenIndependent Director

FAQ

What is the latest intrinsic value of Wipro Ltd?

The latest intrinsic value of Wipro Ltd as on 21 November 2024 is ₹554.23, which is 0.50% lower than the current market price of ₹557.00.

What is the Market Cap of Wipro Ltd?

The Market Cap of Wipro Ltd is 2,91,669 Cr..

What is the current Stock Price of Wipro Ltd as on 21 November 2024?

The current stock price of Wipro Ltd as on 21 November 2024 is ₹557.

What is the High / Low of Wipro Ltd stocks in FY 2024?

In FY 2024, the High / Low of Wipro Ltd stocks is 583/393.

What is the Stock P/E of Wipro Ltd?

The Stock P/E of Wipro Ltd is 24.8.

What is the Book Value of Wipro Ltd?

The Book Value of Wipro Ltd is 156.

What is the Dividend Yield of Wipro Ltd?

The Dividend Yield of Wipro Ltd is 0.18 %.

What is the ROCE of Wipro Ltd?

The ROCE of Wipro Ltd is 16.9 %.

What is the ROE of Wipro Ltd?

The ROE of Wipro Ltd is 14.3 %.

What is the Face Value of Wipro Ltd?

The Face Value of Wipro Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Wipro Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE