Wipro Share Price

Wipro Ltd. Fundamental Analysis

This guide will analyze Yes Bank Limited to understand what its business model is, and the industry fundamentals, as a result of which we can determine whether it would be a good investment for you.

Wipro Limited

Wipro Limited, which was originally called Western India Vegetable Products Limited, is an Indian multinational company that offers IT services, consulting, and business process management. Mohamed Premji started it on 29th December 1945 in Amalner, India.

During the late 1970s and 1980s, Wipro changed its strategy and moved into the emerging field of information technology (IT) and the computing industry.

Today, Wipro is one of the top Big Tech companies having capabilities spanning across cloud computing, computer security, digital transformation, artificial intelligence, robotics, data analytics, and other technology consulting services. It operates in 167 countries and has a workforce of more than 234, 000 employees.

Wipro is known for focusing on sustainability and inclusion as well as supporting the achievement of client aspirations through innovative solutions and ideas.

Is the IT (Information Technology) Sector a Goldmine Investment?

The IT sector in India is indeed a promising area for investment. The industry constantly enhances its digital capabilities by adopting deep tech technologies and focusing on deploying emerging technology solutions such as AI, Cybersecurity, and IoT.

In FY 2023, the technology industry was estimated to have 5.4 Mn employees and a contribution of 53% to India’s service exports. The government of India has taken major initiatives to promote the IT/ITeS sector, with up to 100% FDI allowed in various services under the automatic route.

As for Wipro, it’s a strong contender in the IT sector. The company has shown resilience and adaptability, making it a good choice for investment.

Therefore, investing in Wipro could be a strategic move for those looking to tap into the growth of India’s IT sector.

Who are Wipro’s competitors in the IT Sector?

Wipro, a leading global information technology (IT), consulting, and business process services company, competes in a competitive landscape. For example, some of the main rivals that can challenge Wipro within IT include:

• HCL Technologies
• IBM (International Business Machines)
• Tata Consultancy Services
• Tech Mahindra
• DXC Technology
• Infosys

History of Wipro Limited

Here’s a brief overview of Wipro Limited’s history covering all the aspects:

• Incorporation: Wipro Limited was incorporated on 29 December 1945 in Amalner, India, by Mohamed Premji. It was initially named Western India Vegetable Products Limited. In 1966, after Mohamed Premji’s death, his son Azim Premji took over Wipro as its chairperson at the age of 21. The company shifted its focus to the IT and computing industries in the 1970s and 1980s.
• Product Range: Wipro Limited is an Indian multinational corporation that provides information technology, consulting, and business process services. It has capabilities in cloud computing, computer security, digital transformation, artificial intelligence (AI), robotics, analytics, and other technology-related consulting services.
• Infrastructure: Wipro Infrastructure Engineering is a diverse industrial engineering business with expertise spanning Hydraulics, Aerospace, Water treatment, Additive manufacturing, and Automation Solutions with 22 state-of-the-art manufacturing facilities across 4 continents.
• Certifications: Wipro has received various certifications that demonstrate its compliance with national and international regulations and standards. For instance, it has received CE certification, FCC certification, and ISO/IEC 20000 certification.
• Awards and Recognition: Wipro has been recognized as one of the world’s most ethical companies for the tenth consecutive year. It has also received numerous corporate awards for the innovations it has introduced and the milestones it has achieved. For instance, Wipro was named the Engineering, Research and Development (ER&D) Organization of the Year

Company Profile of Wipro Limited

Pros:

• Strong Financial Performance: Wipro has shown a strong financial performance over the years.
• Global Presence: Wipro is a leading global IT, consulting, and business process services company. Its global presence and diverse portfolio provide it with a competitive edge.
• Positive Industry Outlook: The fundamental outlook for the IT Services and Consulting sub-industry for the next 12 months is positive.

Cons:

• Revenue Decline: Wipro’s gross revenue decreased by 0.8% year-over-year (YoY), indicating a potential slowdown in business growth.
• Segment Revenue Decrease: The IT services segment revenue saw a decrease of 3.8% YoY, which could be a concern for investors looking for growth in the core business area.
• Operating Margin: While there was a slight increase in operating margin, the overall contraction in margins and a minor decline in revenue as expected by analysts like Kotak Equities could signal pressure on profitability.
• Voluntary Attrition: A voluntary attrition rate of 14.2% on a trailing 12-month basis might suggest challenges in retaining talent, which is crucial for service-oriented companies.

The Finances

Here’s a summary of Wipro Limited’s financial information as of May 2024:

Shareholding pattern of Wipro Ltd.

According to the most recent data, Wipro Ltd. has the following shareholding pattern.

• Promoters: Hold 72.9%
• Foreign Institutional Investors (FII): 7.0%
• Domestic Institutional Investors (DII): 10.7%
• Public: 9.4%

Peer Multiple Comparison

Here are some of the key competitors of Yes Bank Ltd. and their respective financial metrics: