Wipro Ltd (NYSE: WIT)

Sector: Technology Industry: Information Technology Services CIK: 0001123799
Market Cap 23.98 Bn
P/B 2.40
P/E 16.25
P/S 2.37
ROIC (Qtr) 929.37
Div Yield % 5.68
Rev 1y % (Qtr) 0.47
Total Debt (Qtr) 2.35 Bn
Debt/Equity (Qtr) 0.24
Add ratio to table...

About

Wipro Limited, commonly known as Wipro, is a prominent player in the global information technology (IT) services and consulting industry. Established in 1945, Wipro has transformed over the years into a purpose-driven organization with a firm commitment to sustainability. Wipro's primary business activities focus on providing IT services and consulting to clients from various industries. The company's extensive range of products and services include digital strategy advisory, customer-centric design, consulting, custom application design, development...

Read more

Investment thesis

Bull case

  • Strong tangible asset base of 11.29B provides 4.81x coverage of total debt 2.35B, indicating robust asset backing and low credit risk.
  • Tangible assets of 11.29B provide exceptional 39.16x coverage of deferred revenue 288.23M, showing strong service capability backing.
  • Long-term investments of 399.92M provide solid 1.01x coverage of long-term debt 395.06M, indicating strategic financial planning.
  • Retained earnings of 8.46B provide full 21.41x coverage of long-term debt 395.06M, indicating strong internal capital position.
  • Cash position of 1.32B provides exceptional 65.55x coverage of minority interest expenses 20.18M, indicating strong liquidity.

Bear case

  • Short-term investments of 5.17B significantly exceed cash reserves of 1.32B, which is 3.91x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • High receivables of 2.31B relative to inventory of 8.40M (274.67 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Operating cash flow of 0 provides insufficient coverage of deferred revenue obligations of 288.23M, which is 0x, raising concerns about future service delivery capabilities.
  • Tax assets of 261.11M provide limited offset against tax liabilities of 1.21B, which is 0.22x, indicating potential future cash flow pressure from tax obligations.
  • Operating cash flow of 0 provides minimal 0x coverage of tax expenses of 454.46M, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Products and services [axis] Breakdown of Revenue (2025)

Products and services [axis] Breakdown of Revenue (2025)

Peer comparison

Companies in the Information Technology Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 IBM International Business Machines Corp 229.77 Bn 29.79 2.98 66.57 Bn
2 ACN Accenture plc 136.96 Bn 17.99 1.94 8.20 Bn
3 INFY Infosys Ltd 61.29 Bn 19.41 3.18 0.68 Bn
4 CTSH Cognizant Technology Solutions Corp 31.81 Bn 14.26 1.51 1.15 Bn
5 FIS Fidelity National Information Services, Inc. 28.54 Bn -1.17 2.90 13.00 Bn
6 WIT Wipro Ltd 23.98 Bn 16.25 2.37 2.35 Bn
7 LDOS Leidos Holdings, Inc. 20.68 Bn 14.28 1.20 5.24 Bn
8 BR Broadridge Financial Solutions, Inc. 20.38 Bn 19.09 2.84 3.17 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.35 1.23
EV to Cash from Ops. EV/CFO -2.98 3.12
EV to Debt EV to Debt -2.31 3.45
EV to EBIT EV/EBIT -2.59 -4.05
EV to EBITDA EV/EBITDA -2.71 3.57
EV to Free Cash Flow [EV/FCF] EV/FCF -3.28 -2.69
EV to Market Cap EV to Market Cap -0.23 1.54
EV to Revenue EV/Rev -0.54 47.25
Price to Book Value [P/B] P/B 2.40 3.04
Price to Earnings [P/E] P/E 16.25 4.15
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -0.59
Dividend Payout Ratio % Div Payout % (Qtr) 90.30 14.14
Dividend per Basic Share Div per Share (Qtr) 0.13 0.47
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.61
Interest Coverage Int. cover (Qtr) 12.85 -318.37
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -256.13
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -9.98 128.67
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 6.73
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 1.63 -36.77
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 -22.62
EBIT Growth (1y) % EBIT 1y % (Qtr) -0.26 -87.06
EBT Growth (1y) % EBT 1y % (Qtr) -0.06 75.53
EPS Growth (1y) % EPS 1y % (Qtr) 1.70 122.99
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 -8,761.26
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -12.10 -4.36
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.01 0.79
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.31 0.73
Current Ratio Curr Ratio (Qtr) 2.19 2.20
Debt to Equity Ratio Debt/Equity (Qtr) 0.24 0.98
Interest Cover Ratio Int Coverage (Qtr) 12.85 -318.37
Times Interest Earned Times Interest Earned (Qtr) 12.85 -318.37
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 -369.53
EBIT Margin % EBIT Margin % (Qtr) 1,860.98 -585.52
EBT Margin % EBT Margin % (Qtr) 19.09 -637.04
Gross Margin % Gross Margin % (Qtr) 26.80 24.60
Net Profit Margin % Net Margin % (Qtr) 14.60 -639.67