Wipro (WIT) AI Stock Analysis

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Wipro

(NYSE:WIT)

67Neutral

Wipro's overall stock score of 67 reflects a stable financial position with strong margins and cash flow generation, despite challenges such as declining revenues and negative guidance. The technical analysis provides limited insights, and the valuation is moderate. The earnings call underscores macroeconomic challenges impacting growth, resulting in a cautious outlook.

Positive Factors

Client Base

WIPRO owns a strong client base with a diversified portfolio mix.

Negative Factors

Economic Challenges

Potential global recession and rising inflationary pressures will hurt IT services’ spending as companies divert their focus to cost initiatives from growth initiatives.

Margins

Supply-side challenges continue to keep margins under pressure.

Wipro (WIT) vs. S&P 500 (SPY)

Market Cap

$30.00B

Dividend Yield2.12%

Average Volume (3M)7.29M

Price to Earnings (P/E)19.5

Beta (1Y)0.89

Revenue Growth-2.83%

EPS Growth106.18%

CountryUS

Employees234,000

SectorTechnology

Sector Strength66

IndustryInformation Technology Services

Share Statistics

EPS (TTM)0.04

Shares Outstanding10,473,304,000

10 Day Avg. Volume7,263,019

30 Day Avg. Volume7,287,535

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$2.53

Price Target Upside-12.76% Downside

Rating ConsensusStrong Sell

Number of Analyst Covering3

Wipro Business Overview & Revenue Model

Company DescriptionWipro Limited (WIT) is a leading global information technology, consulting, and business process services company. Headquartered in Bangalore, India, Wipro operates across various sectors including financial services, healthcare, manufacturing, and technology. The company provides a broad range of services including IT consulting, digital strategy, cloud services, cybersecurity, and engineering solutions, aimed at driving business transformation for its clients worldwide.

How the Company Makes MoneyWipro makes money primarily through the provision of IT services and solutions. The company's revenue model is based on offering comprehensive IT consulting and outsourcing services to enterprises across diverse industries. Key revenue streams include application development and maintenance, systems integration, IT infrastructure management, and business process outsourcing. Additionally, Wipro generates income through digital transformation services, which encompass analytics, artificial intelligence, cloud computing, and cybersecurity solutions. Strategic partnerships with technology vendors and industry leaders bolster Wipro's service offerings and enhance its market reach, contributing significantly to its earnings.

Wipro Financial Statement Overview

Summary

Wipro demonstrates a strong financial standing with robust profitability and effective cash management. The company shows a solid balance sheet with low leverage and efficient capital use. Although revenue growth has slowed, margins and cash flow generation remain resilient.

Income Statement

Positive

Wipro's income statement is strong, with consistent gross profit margins around 30% and a net profit margin improving to 13.2% in TTM. Revenue growth has been modest, with a decline in the latest TTM period. EBIT and EBITDA margins remain healthy, indicating stable operational efficiency.

Balance Sheet

Very Positive

The balance sheet demonstrates solid financial health with a low debt-to-equity ratio of 0.24, indicating prudent leverage. The equity ratio is strong at 64.9%, showing a stable capital structure. ROE is robust, reflecting efficient use of equity capital.

Cash Flow

Positive

Cash flow analysis shows a strong free cash flow growth rate of 50.6% in the latest TTM, indicating improved cash generation. Operating cash flow to net income ratio is healthy at 1.58, but the free cash flow to net income ratio has room for improvement.

Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
897.60B	904.88B	790.93B	619.43B	610.23B
	Gross Profit
266.11B	259.43B	235.06B	196.22B	174.15B
	EBIT
136.10B	139.61B	140.29B	123.05B	105.73B
	EBITDA
193.83B	189.38B	165.30B	168.41B	122.28B
	Net Income Common Stockholders
110.45B	113.50B	122.19B	107.95B	97.22B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
407.79B	401.87B	351.28B	346.12B	335.19B
	Total Assets
1.15T	1.18T	1.08T	831.43B	817.06B
	Total Debt
164.65B	174.67B	175.93B	104.51B	97.24B
	Net Debt
67.70B	82.79B	72.09B	-65.28B	-47.26B
	Total Liabilities
401.24B	394.07B	420.51B	276.84B	257.73B
	Stockholders Equity
749.88B	781.16B	658.16B	553.10B	557.46B
Cash Flow		Free Cash Flow
165.71B	115.77B	90.64B	127.97B	77.15B
	Operating Cash Flow
176.22B	130.60B	110.80B	147.55B	100.64B
	Investing Cash Flow
11.68B	-84.06B	-224.50B	7.74B	34.01B
	Financing Cash Flow
-182.57B	-60.88B	46.59B	-128.84B	-151.00B

Wipro Technical Analysis

Technical Analysis Sentiment

Negative

Last Price2.90

Price Trends

50DMA

3.03

Negative

100DMA

3.30

Negative

200DMA

3.23

Negative

Market Momentum

MACD

-0.05

Negative

RSI

49.67

Neutral

STOCH

91.68

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WIT, the sentiment is Negative. The current price of 2.9 is above the 20-day moving average (MA) of 2.82, below the 50-day MA of 3.03, and below the 200-day MA of 3.23, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 49.67 is Neutral, neither overbought nor oversold. The STOCH value of 91.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WIT.

Wipro Risk Analysis

Wipro disclosed 59 risk factors in its most recent earnings report. Wipro reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Wipro Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INFY	80 Outperform	$74.25B	23.44	29.00%	2.32%	3.85%	-0.38%
G	78 Outperform	$8.69B	17.46	22.15%	1.26%	6.46%	-16.94%
ACN	77 Outperform	$191.14B	25.19	27.26%	1.88%	4.10%	9.78%
CTSH	76 Outperform	$38.30B	16.36	16.61%	1.56%	4.09%	14.05%
EPAM	73 Outperform	$9.08B	20.45	12.80%	―	0.80%	10.05%
WIT	67 Neutral	$30.00B	19.52	16.91%	2.12%	-2.83%	106.18%
Sector *	60 Neutral	$10.94B	10.48	-7.04%	2.99%	7.55%	-12.20%

* Technology Sector Average

Performance Comparison

WIT

Wipro

2.90

0.21

7.81%

ACN

Accenture

305.33

4.62

1.54%

CTSH

Cognizant

77.70

12.31

18.83%

EPAM

Epam Systems

160.36

-86.03

-34.92%

Genpact

49.71

17.91

56.32%

INFY

Infosys

17.88

1.37

8.30%

Wipro Earnings Call Summary

Earnings Call Date:Apr 16, 2025

(Q4-2025)

% Change Since: 2.84%|

Next Earnings Date:Jul 17, 2025

Earnings Call Sentiment Negative

The earnings call highlights Wipro's strong performance in large deals and margin improvements, but these are overshadowed by declining revenues, particularly in Europe, and a challenging macroeconomic environment that has led to cautious spending and negative revenue guidance. Overall, the sentiment reflects more challenges than achievements.

Q4-2025 Updates

Positive Updates

Strong Large Deal Performance

Wipro closed 17 large deals in Q4 with a total value of $1.8 billion and 63 large deals for the full year totaling $5.4 billion, reflecting a year-on-year growth of 17.5%.

Margin Improvement

Operating margins for Q4 were at 17.5%, showing a 1.1% year-on-year expansion, and for the full year FY 2025, margins expanded by 0.9%.

Growth in Capco Business

Capco demonstrated strong performance with a sequential growth of 6.5% and 11.5% growth on a year-on-year basis.

Increased Client Satisfaction

Improvement in overall customer satisfaction scores and Net Promoter Score (NPS) as per the latest third-party annual survey.

Negative Updates

Decline in IT Services Revenue

IT Services revenue for Q4 declined by 0.8% sequentially and 1.2% year-on-year. Full-year IT Services revenues were $10.51 billion, reflecting a year-on-year decline of 2.3%.

Weakness in European Market

Europe de-grew 2.5% sequentially and 6.9% year-on-year, significantly impacting overall performance.

Challenging Macro Environment

Global industry uncertainty and recent tariff announcements have created a cautious spending environment for clients, impacting transformation projects and discretionary spending.

Negative Revenue Guidance

Guidance for Q1 FY 2026 expects a sequential decline in IT Services revenue of between 3.5% and 1.5%.

Company Guidance

In the Wipro Limited Q4 FY 2025 earnings call, the company provided guidance for a sequential revenue decline between 3.5% to 1.5% in constant currency terms, reflecting ongoing macroeconomic uncertainties and cautious client spending, particularly in large transformation projects. The company reported Q4 IT Services revenue of $2.6 billion, a sequential decline of 0.8% and a year-on-year decline of 1.2%. Despite these challenges, the company achieved an operating margin of 17.5%, a year-on-year expansion of 110 basis points. For the full fiscal year, IT Services revenue was $10.51 billion, a year-on-year decline of 2.3%, with operating margins expanding to 17.1% from the previous year. The company's strategic focus areas include driving large deal momentum, which saw 63 large deals closed in FY25 with a total value of $5.4 billion, representing a 17.5% year-on-year growth in large deal bookings.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.