WIT  Wipro Limited

Exchange

NYSE

Sector

Technology

Industry

EDP Services

Market Cap.

26.31B

Vuru Grade

93.03/100

Current Price

$5.43
+0.00 (+0.00%)

Growth Price

$12.39
Undervalued by 128.09%

Stability Price

$3.26
Overvalued by 39.98%

Company Metrics

  • P/E 19.46
  • P/S 3.07
  • P/B 2.99
  • EPS 0.28
  • Cash ROIC 32.50%
  • Cash Ratio 1.50
  • Dividend 0.02 / 0.41%
  • Avg. Vol. 1.46M
  • Shares 2.44B
  • Market Cap. 26.31B

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

5.43
MarketWatch - Jul 22, 2009
Investor Network: Wipro Limited Sponsored ADR to Host Earnings Call. Investor Network: Wipro Limited Sponsored ADR to Host Earnings Call. Oct. 17, 2017 at 6:41 a.m. ET; on ACCESSWIRE. Sponsored ...
How Many Wipro Limited (ADR) (NYSE:WIT)'s Analysts Are Bullish?
BZ Weekly - 13 hours ago
Among 10 analysts covering Wipro Limited (NYSE:WIT), 1 have Buy rating, 6 Sell and 3 Hold. Therefore 10% are positive. Wipro Limited had 12 analyst reports since August 5, 2015 according to SRatingsIntel. The firm has “Reduce” rating by HSBC given on ...
How Stochastic %D predicts the worthiness of Wipro Ltd. (NYSE:WIT)? - The Oracle Examiner
Wipro Limited (WIT) Lifted to Buy at Zacks Investment Research - The Ledger Gazette
Wipro Limited (ADR)(NYSE:WIT) Associates With CloudGenix To Offer Managed SD ...
Journal Transcript - Oct 6, 2017
Wipro Limited (ADR)(NYSE:WIT) and CloudGenix Inc. reported a partnership to provide managed SD-WAN services. Named as WANFreedom, the service enables enterprise consumers to rapidly deploy cloud, data center and 'Software as a Service' ...
Analysts See $0.06 EPS for Wipro Limited (ADR) (WIT)
WeeklyHub - Oct 7, 2017
Analysts expect Wipro Limited (ADR) (NYSE:WIT) to report $0.06 EPS on October, 17.They anticipate $0.00 EPS change or 0.00 % from last quarter's $0.06 EPS.
$0.06 EPS Expected for Wipro Limited (ADR) (WIT) - KL Daily
EPS for Wipro Limited (ADR) (WIT) Expected At $0.06 - Press Telegraph
Wipro Clarifies on Ex-date for ADR Stock Dividend
Business Wire (press release) - Jun 12, 2017
EAST BRUNSWICK, N.J. & BANGALORE, India--(BUSINESS WIRE)--In view of today's market activity in the Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) stock, the New York Stock Exchange has contacted the Company in accordance with its usual ...
Wipro ADRs slump on NYSE, company clarifies on bonus issue - Livemint
The 'Consumer Goods Technology' Honors Wipro Limited (ADR) (NYSE:WIT) As The ...
Journal Transcript - Mar 10, 2017
It was a source of great joy for Srini Pallia, President, Consumer Business Unit for Wipro Ltd that the company had found a place in the top rankings in the established categories.
World Asset Management Has Lifted By $672210 Its Wipro LTD Sponsored Adr ...
NormanObserver.com - Oct 22, 2017
Among 8 analysts covering Ramco-Gershenson (NYSE:RPT), 3 have Buy rating, 1 Sell and 4 Hold. Therefore 38% are positive. Ramco-Gershenson had 17 analyst reports since November 2, 2015 according to SRatingsIntel.
Wipro Limited (ADR) (WIT) Analysts See $0.06 EPS
Finance News Daily - Oct 16, 2017
Wall Street await Wipro Limited (ADR) (NYSE:WIT) to release earnings on October, 17. Analysts forecast earnings per share of $0.06, exactly $0.00 or 0.00 % from 2014's $0.06 EPS.
Is Wipro Ltd. (NYSE:WIT) a Good Investment? - The Oracle Examiner
Why Wipro Shares Got Wiped Out Monday
Benzinga - Jun 13, 2017
Shareholders of Indian IT company Wipro Limited (ADR) (NYSE: WIT) went on quite a ride Monday on what appears to be confusion over an upcoming dividend payment.
How Analysts Rated Wipro Limited (ADR) (NYSE:WIT) Last Week? - Weekly Register
Jack Henry & Associates, Inc. (JKHY) Analysts See $0.79 EPS; Wipro Limited ...
NormanObserver.com - 11 hours ago
With 1.24M avg volume, 25 days are for Wipro Limited (NYSE:WIT)'s short sellers to cover WIT's short positions. The SI to Wipro Limited's float is 5.24%.
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.

$5.43 Current Price

$12.39 Growth Price (DCF)

Undervalued by 128.09%


Growth Rate Assumed by Market: -53.71%


Future Free Cash Flow Growth Rate: 15.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$3.26 Stability Price (EPV)

Overvalued by 39.98%


Discount Rate: 15.0%

$2.41 NCA Price

Overvalued by 55.70%

$0.54 Book Price

Overvalued by 89.97%


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 $32.50 of cash for every $100 invested.
Figures in INR. Fiscal year ends in March
20132014201520162017
Free Cash Flow 59.81B 58.98B 65.60B 64.92B 71.92B
divided by
Invested Capital 130.63B 191.09B 223.16B 274.37B 219.23B
Cash ROIC 45.78% 30.87% 29.40% 23.66% 32.81%

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 $20.64 of Earnings for every $100 of Shareholders' Equity.
Figures in INR. Fiscal year ends in March
20132014201520162017
Net Income 66.70B 78.41B 87.06B 89.41B 85.14B
divided by
Stockholders' Equity 283.81B 343.50B 407.98B 466.08B 520.30B
Return on Equity 23.50% 22.83% 21.34% 19.18% 16.36%

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
2008200920102011201220132014201520162017
Free Cash Flow 9.95B 20.24B 51.00B 28.23B 27.10B 59.81B 58.98B 65.60B 64.92B 71.92B

Very Strong Balance Sheet

WIT has more Cash than its Total Liabilities, resulting in $0.65 Net Cash per share. In other words, if you buy WIT today, the price you're paying for shares is actually $4.78 because $0.65 of Cash is included in the current share price. This much Cash is very healthy. It can help WIT sustain itself in the face of any economic turmoil and makes a stock buyback more of a possibility.
Figures in INR. Fiscal year ends in March
2008200920102011201220132014201520162017
Cash 54.20B 65.30B 97.91B 110.42B 119.63B 164.36B 174.76B 212.85B 231.99B 344.74B
Current Assets 128.66B 164.72B 201.18B 232.31B 273.49B 307.40B 354.69B 436.49B 505.59B 538.90B
Total Assets 225.07B 290.55B 329.93B 371.44B 436.00B 439.73B 502.30B 600.03B 724.92B 793.52B
Current Liabilities 74.90B 112.88B 105.61B 100.62B 117.69B 144.74B 136.46B 164.03B 218.56B 229.54B
Total Liabilities 95.29B 140.37B 133.82B 131.76B 150.69B 155.92B 158.81B 192.05B 258.84B 273.21B
Stockholder' Equity 129.79B 150.18B 196.11B 239.68B 285.31B 283.81B 343.50B 407.98B 466.08B 520.30B
Current Ratio 1.72 1.46 1.90 2.31 2.32 2.12 2.60 2.66 2.31 2.35
TL-to-TA 0.42 0.48 0.41 0.35 0.35 0.35 0.32 0.32 0.36 0.34

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
2008200920102011201220132014201520162017
Retained Earnings 101.30B 128.64B 165.79B 203.25B 241.91B 259.18B 314.95B 372.25B 425.74B 490.93B
Retained Earnings Growth - 26.99% 28.88% 22.60% 19.02% 7.14% 21.52% 18.19% 14.37% 15.31%

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.

$16.62 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in INR. Fiscal year ends in March
2008200920102011201220132014201520162017
Net Income 32.34B 34.42B 46.12B 52.98B 55.73B 66.70B 78.41B 87.06B 89.41B 85.14B
divided by
Revenue 197.91B 254.56B 271.96B 310.54B 371.97B 374.26B 434.27B 469.55B 512.44B 550.40B
Net Profit Margin 16.34% 13.52% 16.96% 17.06% 14.98% 17.82% 18.05% 18.54% 17.45% 15.47%

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.

$37.58 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
2008200920102011201220132014201520162017
Gross Profit 58.74B 76.39B 85.66B 97.73B 371.97B 113.59B 138.78B 148.26B 155.72B 158.86B
divided by
Revenue 197.91B 254.56B 271.96B 310.54B 371.97B 374.26B 434.27B 469.55B 512.44B 550.40B
Gross Margin 29.68% 30.01% 31.50% 31.47% 100.00% 30.35% 31.96% 31.58% 30.39% 28.86%

Low Capital Intensity over the past 10 years

WIT has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that WIT may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

24.67% 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
2008200920102011201220132014201520162017
Capital Expenditure 14.72B 16.59B - 12.21B 12.98B 10.62B 8.91B 12.66B 13.95B 20.85B
divided by
Net Income 32.34B 34.42B 46.12B 52.98B 55.73B 66.70B 78.41B 87.06B 89.41B 85.14B
Capital Expenditure Ratio 45.53% 48.21% - 23.05% 23.29% 15.92% 11.37% 14.54% 15.60% 24.49%

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
2008200920102011201220132014201520162017
Dividend Paid 5.42B 6.83B 6.82B 15.59B 17.23B 17.08B 23.27B 29.49B 35.49B 8.73B
divided by
Shares Outstanding 2.42B 2.43B 4.08B 2.45B 2.46B 2.46B 2.46B 2.46B 2.46B 2.44B
Dividend Paid Per Share 0.05 0.06 0.04 0.14 0.15 0.15 0.21 0.26 0.32 0.08
Price at Year End 4.78 13.16 15.41 10.15 8.69 12.51 11.54 11.64 9.68 10.15
Dividend Yield 1.03% 0.47% 0.24% 1.38% 1.78% 1.22% 1.81% 2.27% 3.28% 0.78%

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
2008200920102011201220132014201520162017
Shares Outstanding 2.42B 2.43B 4.08B 2.45B 2.46B 2.46B 2.46B 2.46B 2.46B 2.44B
Stock Bought Back - -0.10% -40.55% 66.56% -0.20% -0.13% -0.14% 0.00% 0.04% 1.07%
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