Wipro (WIT) AI Stock Analysis

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Wipro

(NYSE:WIT)

68Neutral

Wipro maintains a robust financial position supported by strong margins and cash flow generation. However, the technical analysis indicates bearish momentum, and valuation shows the stock as fairly valued. The earnings call highlights operational achievements but also areas of concern, leading to a balanced overall assessment.

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

Market Cap

$29.45B

Dividend Yield2.15%

Average Volume (3M)5.64M

Price to Earnings (P/E)26.6

Beta (1Y)0.92

Revenue Growth-3.41%

EPS Growth67.87%

CountryUS

Employees234,000

SectorTechnology

Sector Strength40

IndustryInformation Technology Services

Share Statistics

EPS (TTM)0.11

Shares Outstanding10,472,136,000

10 Day Avg. Volume6,074,284

30 Day Avg. Volume5,640,352

Financial Highlights & Ratios

PEG Ratio0.39

Price to Book (P/B)N/A

Price to Sales (P/S)3.08

Price to Cash Flow (P/CF)N/A

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

$2.90

Price Target Upside4.32% Upside

Rating ConsensusModerate Sell

Number of Analyst Covering3

Wipro Business Overview & Revenue Model

Company DescriptionWipro Limited operates as information technology (IT), consulting, and business process services company worldwide. It operates through three segments: IT Services, IT Products, and India State Run Enterprise Services (ISRE). The IT Services segment offers IT and IT-enabled services, including digital strategy advisory, customer-centric design, technology and IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud and infrastructure, business process, cloud, mobility and analytics, research and development, and hardware and software design services to enterprises. It serves customers in various industry sectors, such as healthcare and medical devices, consumer goods and life sciences, retail, transportation and services, communications, media and information services, technology products and platforms, banking, financial services and insurance, manufacturing, hi-tech, energy, and utilities. The IT Products segment provides a range of third-party IT products comprising enterprise platforms, networking solutions, software and data storage products, contact center infrastructure, enterprise security, IT optimization technologies, video solutions, and end-user computing solutions. It serves enterprises in various industries primarily in the India market, which comprise the government, defense, IT and IT-enabled services, telecommunications, manufacturing, utilities, education, and financial services sectors. The ISRE segment offers IT services to entities and departments owned or controlled by the Government of India and/or various Indian State Governments. The company was incorporated in 1945 and is based in Bengaluru, India.

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.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
886.79B	897.60B	904.88B	790.93B	619.43B	610.23B
	Gross Profit
267.39B	266.11B	259.43B	235.06B	196.22B	174.15B
	EBIT
142.79B	136.10B	139.61B	140.29B	123.05B	105.73B
	EBITDA
179.71B	193.83B	189.38B	165.30B	168.41B	122.28B
	Net Income Common Stockholders
117.41B	110.45B	113.50B	122.19B	107.95B	97.22B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
159.06B	407.79B	401.87B	351.28B	346.12B	335.19B
	Total Assets
482.31B	1.15T	1.18T	1.08T	831.43B	817.06B
	Total Debt
47.52B	164.65B	174.67B	175.93B	104.51B	97.24B
	Net Debt
-32.42B	67.70B	82.79B	72.09B	-65.28B	-47.26B
	Total Liabilities
151.46B	401.24B	394.07B	420.51B	276.84B	257.73B
	Stockholders Equity
329.55B	749.88B	781.16B	658.16B	553.10B	557.46B
Cash Flow		Free Cash Flow
174.31B	165.71B	115.77B	90.64B	127.97B	77.15B
	Operating Cash Flow
185.95B	176.22B	130.60B	110.80B	147.55B	100.64B
	Investing Cash Flow
-168.68B	11.68B	-84.06B	-224.50B	7.74B	34.01B
	Financing Cash Flow
-11.20B	-182.57B	-60.88B	46.59B	-128.84B	-151.00B

Wipro Technical Analysis

Technical Analysis Sentiment

Negative

Last Price2.78

Price Trends

50DMA

3.31

Negative

100DMA

3.40

Negative

200DMA

3.25

Negative

Market Momentum

MACD

-0.08

Negative

RSI

39.65

Neutral

STOCH

38.10

Neutral

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 2.78 is below the 20-day moving average (MA) of 3.02, below the 50-day MA of 3.31, and below the 200-day MA of 3.25, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 39.65 is Neutral, neither overbought nor oversold. The STOCH value of 38.10 is Neutral, 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 (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
G	80 Outperform	$8.22B	16.44	22.15%	1.34%	6.46%	-16.94%
ACN	75 Outperform	$178.24B	23.49	27.26%	1.95%	4.10%	9.78%
INFY	75 Outperform	$67.29B	21.02	33.16%	2.47%	3.08%	11.92%
CTSH	72 Outperform	$34.00B	15.25	16.21%	1.80%	1.98%	7.16%
EPAM	69 Neutral	$8.27B	18.28	12.80%	―	0.80%	10.05%
WIT	68 Neutral	$29.45B	26.61	16.59%	2.15%	-3.41%	67.87%
Sector *	57 Neutral	$18.45B	9.41	-13.97%	2.74%	5.04%	-23.56%

* Technology Sector Average

Performance Comparison

WIT

Wipro

2.78

0.04

1.46%

ACN

Accenture

281.39

-38.92

-12.15%

CTSH

Cognizant

66.47

-2.42

-3.51%

EPAM

Epam Systems

143.33

-123.46

-46.28%

Genpact

45.08

13.80

44.12%

INFY

Infosys

16.42

-1.09

-6.23%

Wipro Earnings Call Summary

Earnings Call Date: Jan 17, 2025 | % Change Since: -14.20% | Next Earnings Date: Apr 16, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture with significant achievements in operational efficiency, strategic deal wins, and AI advancements. However, the company faced challenges with revenue declines in certain regions and sectors, indicating a balanced outlook.

Highlights

Record Operating Margins

Achieved operating margins of 17.5%, marking a 12-quarter high with an expansion of 0.7% quarter-on-quarter and 1.5% year-on-year.

Significant Deal Wins

Closed 17 large deals worth $1 billion, including a deal with a leading American retail company and a Middle Eastern airline for technology modernization.

Growth in Key Sectors

Health sector maintained momentum with 6.7% sequential growth and 4.5% year-on-year growth. BFSI sector grew 3.4% year-on-year despite a quarterly decline.

AI and Innovation Commitment

Invested in AI education with 50,000 employees holding advanced AI certification, and early adoption of Agentic AI for impactful client results.

EPS and Net Income Growth

EPS and net income grew 24% year-on-year and 5% sequentially, driven by margin expansion and better treasury returns.

Lowlights

Revenue Decline in Europe and APMEA

Europe and APMEA regions saw declines of 2.7% and 2.1% sequentially, and 4.6% and 8% year-on-year, respectively.

Challenges in Technology and Communications

The Technology and Communications sector saw a decline of 0.6% quarter-on-quarter and 5.3% year-on-year.

Flat Sequential Revenue Growth

IT Services revenue for Q3 was $2.63 billion, reflecting a minimal sequential growth of 0.1% and a degrowth of 0.7% year-on-year.

Negative Growth in Energy, Manufacturing, and Resources

This sector grew only 0.4% quarter-on-quarter and declined 8.7% year-on-year.

Company Guidance

In the Q3 2025 earnings call for Wipro Limited, the company provided guidance for the upcoming quarter, projecting a sequential growth range of -1% to +1% in constant currency terms, equating to $2.602 billion to $2.655 billion in US dollar terms. During the call, Wipro's CEO, Srinivas Pallia, highlighted the company's achievements, including a 0.1% sequential growth in IT Services revenue, reaching $2.63 billion, and a TCV of $3.5 billion in bookings. Operating margins expanded to 17.5%, marking a 12-quarter high and a year-on-year increase of 1.5%. The company closed 17 large deals valued at $1 billion and reported strong performance in the Americas, with health and technology sectors leading growth. Despite challenges in Europe and APMEA, Wipro remains optimistic about future growth driven by AI investments and strategic market initiatives.

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.