WIT  Wipro Limited

Exchange

NYSE

Sector

Technology

Industry

EDP Services

Market Cap.

23.54B

Vuru Grade

81.96/100

Current Price

$9.74
+0.14 (+1.46%)

Growth Price

$11.23
Undervalued by 15.34%

Stability Price

$6.90
Overvalued by 29.11%

Company Metrics

  • P/E 18.95
  • P/S 2.85
  • P/B 3.08
  • EPS 0.51
  • Cash ROIC 28.67%
  • Cash Ratio 1.06
  • Dividend 0.04 / 0.46 %
  • Avg. Vol. 580,138.00
  • Shares 2.42B
  • Market Cap. 23.54B

Company Description

Wipro Limited provides information technology (IT) products and services, and consumer care and lighting products primarily in India, the United States, and Europe. The IT Services segment provides IT and IT enabled services, including software application development, application maintenance, research and development services for hardware and software design, data center outsourcing services, and... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Wipro Limited (ADR) (WIT) Releases Earnings Results, Beats Expectations By $0 ...
Highland Mirror - Jan 25, 2017
Wipro Limited (ADR) (WIT) announced its most recent quarterly financial results on Wednesday, Jan-25-2017. WIT said it had a profit of $8.70 Earnings per Share for the quarter.
Wipro Limited (WIT)
Zacks.com - Oct 1, 2002
WIPRO LTD-ADR provides comprehensive IT solutions and services, including systems integration, Information Systems outsourcing, package implementation, software application development and maintenance, and research and development services to ...
Earnings Buzzers: Wipro Limited (ADR) (NYSE:WIT)
Post Registrar - Jul 20, 2016
Shares of Wipro Limited (ADR) (NYSE:WIT) fell -6.84% to reach at $-0.81 during the course of session. The company has experienced volume of M shares while on average the company has a capacity of trading 445,146.00 shares.
WIPRO LTD-ADR (WIT) Receives Average Rating of “Sell” from Brokerages
Sports Perspectives - Jan 24, 2017
WIPRO LTD-ADR logo WIPRO LTD-ADR (NYSE:WIT) has received a consensus rating of “Sell” from the eight research firms that are presently covering the firm.
Is Wipro Limited (ADR) (WIT) A Good Stock to Buy?
Insider Monkey (blog) - Dec 13, 2016
According to Insider Monkey's hedge fund database, AQR Capital Management, led by Cliff Asness, holds the number one position in Wipro Limited (ADR) (NYSE:WIT). AQR Capital Management has a $65.6 million position in the stock. Coming in second is ...
WIPRO LTD-ADR (WIT) to Release Quarterly Earnings on Wednesday
Sports Perspectives - Jan 24, 2017
WIPRO LTD-ADR logo WIPRO LTD-ADR (NYSE:WIT) is scheduled to issue its Q317 quarterly earnings data on Wednesday, January 25th.
Nordea Investment Management AB Has $29015000 Stake in WIPRO LTD-ADR (WIT) - BBNS
Indian ADRs: Infosys & Wipro ADR closes in green
Dalal Street Investment Journal - Feb 10, 2017
Following are the top ten Indian American depositary receipts (ADRs) trading on NASDAQ. Seven out of 10 stocks closed in positive on February 9, 2017.
WIPRO LTD-ADR (WIT) Shares Sold by Mitsubishi UFJ Trust & Banking Corp
Community Financial News - Jan 20, 2017
WIPRO LTD-ADR logo Mitsubishi UFJ Trust & Banking Corp decreased its stake in WIPRO LTD-ADR (NYSE:WIT) by 18.7% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC).
7 Undervalued Stocks With Growing EPS
GuruFocus.com - 16 hours ago
EPS of Wipro Ltd ADR (WIT) grew by 15% over the last 10 years. According to the DCF calculator, the stock is undervalued and is trading with a margin of safety of 7% at the price of $9.6.
Three Indian Technology and Service Companies Worth Considering
Motley Fool - Jun 13, 2016
... at a rate exceeding 8% each year over the next decade. Let's take a look at three companies that can benefit from the growing IT industry in India: Infosys Technologies (NYSE:INFY), WNS (Holdings) Limited (NYSE:WNS), and Wipro Limited (NYSE:WIT).
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for WIT to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate WIT's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$9.74 Current Price

$11.23 Growth Price (DCF)

Undervalued by 15.34%


Growth Rate Assumed by Market: 9.16%


Future Free Cash Flow Growth Rate: 15.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$6.90 Stability Price (EPV)

Overvalued by 29.11%


Discount Rate: 15.0%

$2.25 NCA Price

Overvalued by 76.89%

$0.52 Book Price

Overvalued by 94.64%


Excellent Cash Return on Invested Capital over the past 5 years

WIT has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. Annual Reports can be useful in identifying the cause of one-time events and future sustainability.

WIT has created $28.67 of cash for every $100 invested.
Figures in INR. Fiscal year ends in March
20122013201420152016
Free Cash Flow 27.10B 59.81B 58.98B 65.60B 64.92B
divided by
Invested Capital 198.69B 130.63B 191.09B 223.16B 274.37B
Cash ROIC 13.64% 45.78% 30.87% 29.40% 23.66%

Excellent Return on Equity over the past 5 years

Over the past 5 years, WIT has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

WIT has generated $21.28 of Earnings for every $100 of Shareholders' Equity.
Figures in INR. Fiscal year ends in March
20122013201420152016
Net Income 55.73B 66.70B 78.41B 87.06B 89.41B
divided by
Stockholders' Equity 285.31B 283.81B 343.50B 407.98B 466.08B
Return on Equity 19.53% 23.50% 22.83% 21.34% 19.18%

Excellent Business Performance over the past 10 years

WIT has been able to maintain profitability in good times and bad. This could mean WIT has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

WIT has created positive free cash flow for 9 or more of the past 10 years.
Figures in INR. Fiscal year ends in March
2007200820092010201120122013201420152016
Free Cash Flow 18.93B 9.95B 20.24B 51.00B 28.23B 27.10B 59.81B 58.98B 65.60B 64.92B

Strong Balance Sheet

WIT is financially strong with Current Assets covering Total Liabilities. It's in a fairly liquid position and dependent on the amount and saleability of any inventory; it may have the financial security to survive an economic downturn.
Figures in INR. Fiscal year ends in March
2007200820092010201120122013201420152016
Cash 45.20B 54.20B 65.30B 97.91B 110.42B 119.63B 164.36B 174.76B 212.85B 231.99B
Current Assets 101.42B 128.66B 164.72B 201.18B 232.31B 273.49B 307.40B 354.69B 436.49B 505.59B
Total Assets 147.32B 225.07B 290.55B 329.93B 371.44B 436.00B 439.73B 502.30B 600.03B 724.92B
Current Liabilities 43.18B 74.90B 112.88B 105.61B 100.62B 117.69B 144.74B 136.46B 164.03B 218.56B
Total Liabilities 44.99B 95.29B 140.37B 133.82B 131.76B 150.69B 155.92B 158.81B 192.05B 258.84B
Stockholder' Equity 102.33B 129.79B 150.18B 196.11B 239.68B 285.31B 283.81B 343.50B 407.98B 466.08B
Current Ratio 2.35 1.72 1.46 1.90 2.31 2.32 2.12 2.60 2.66 2.31
TL-to-TA 0.31 0.42 0.48 0.41 0.35 0.35 0.35 0.32 0.32 0.36

Consistent Reinvestment of Profits over the past 10 years

WIT has consistently retained profits. This may put WIT in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, WIT can greatly improve their long-term economic picture.
Figures in INR. Fiscal year ends in March
2007200820092010201120122013201420152016
Retained Earnings 74.57B 101.30B 128.64B 165.79B 203.25B 241.91B 259.18B 314.95B 372.25B 425.74B
Retained Earnings Growth - 35.84% 26.99% 28.88% 22.60% 19.02% 7.14% 21.52% 18.19% 14.37%

Potential Competitive Advantage over the past 10 years

WIT potentially has a competitive advantage. This could be strong branding, the ability to keep costs low, or some other characteristic that is hard to replicate. Look at its future prospects to determine sustainability and whether the economic moat will strengthen.

$17.02 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in INR. Fiscal year ends in March
2007200820092010201120122013201420152016
Net Income 29.38B 32.34B 34.42B 46.12B 52.98B 55.73B 66.70B 78.41B 87.06B 89.41B
divided by
Revenue 150.70B 197.91B 254.56B 271.96B 310.54B 371.97B 374.26B 434.27B 469.55B 512.44B
Net Profit Margin 19.49% 16.34% 13.52% 16.96% 17.06% 14.98% 17.82% 18.05% 18.54% 17.45%

Inconsistent Gross Profit Margins over the past 10 years

WIT has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$37.85 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in INR. Fiscal year ends in March
2007200820092010201120122013201420152016
Gross Profit 47.63B 58.74B 76.39B 85.66B 97.73B 371.97B 113.59B 138.78B 148.26B 155.72B
divided by
Revenue 150.70B 197.91B 254.56B 271.96B 310.54B 371.97B 374.26B 434.27B 469.55B 512.44B
Gross Margin 31.61% 29.68% 30.01% 31.50% 31.47% 100.00% 30.35% 31.96% 31.58% 30.39%

Medium Capital Intensity over the past 10 years

WIT has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

26.29% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in INR. Fiscal year ends in March
2007200820092010201120122013201420152016
Capital Expenditure 11.49B 14.72B 16.59B - 12.21B 12.98B 10.62B 8.91B 12.66B 13.95B
divided by
Net Income 29.38B 32.34B 34.42B 46.12B 52.98B 55.73B 66.70B 78.41B 87.06B 89.41B
Capital Expenditure Ratio 39.11% 45.53% 48.21% - 23.05% 23.29% 15.92% 11.37% 14.54% 15.60%

Very Strong Dividend History over the past 10 years

WIT has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests WIT is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in INR. Fiscal year ends in March
2007200820092010201120122013201420152016
Dividend Paid 8.95B 5.42B 6.83B 6.82B 15.59B 17.23B 17.08B 23.27B 29.49B 35.49B
divided by
Shares Outstanding 2.41B 2.42B 2.43B 4.08B 2.45B 2.46B 2.46B 2.46B 2.46B 2.46B
Dividend Paid Per Share 0.08 0.05 0.06 0.04 0.14 0.15 0.15 0.21 0.26 0.32
Price at Year End 8.79 4.78 13.16 15.41 10.15 8.69 12.51 11.54 11.64 9.68
Dividend Yield 0.93% 1.03% 0.47% 0.24% 1.38% 1.78% 1.22% 1.81% 2.27% 3.28%

History of Stock Buybacks over the past 10 years

WIT has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in INR. Fiscal year ends in March
2007200820092010201120122013201420152016
Shares Outstanding 2.41B 2.42B 2.43B 4.08B 2.45B 2.46B 2.46B 2.46B 2.46B 2.46B
Stock Bought Back - -0.71% -0.10% -40.55% 66.56% -0.20% -0.13% -0.14% 0.00% 0.04%
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