One-glance verdict
Undervalued
$3.67 our estimate vs market $1.81
Wall Street consensus: $1.75 (-52.4% lower than our fair-value estimate)
51% below our estimate, below the bear case
Fundamentals snapshot
Wipro Limited
WIT · NYQ · Technology · Information Technology Services
Current price
$1.81
52-week range
$1.75 - $3.09
Market cap
$17.91B
Balance sheet
Healthy
18.86x Strong cushion
Net cash $1.93B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 4.0% last year.
- Reward Returns 16.1% on equity, ahead of 33% of its peers.
- Risk Stock trades 6043.7% above its 5-year average P/E.
- Risk Insider ownership is only 0.0% (peer median: 0.1%).
What this company does
Wipro Limited
Wipro is a large technology consulting company that other businesses hire to manage their computer systems and digital projects. The vast majority of its revenue (money earned from sales before costs are subtracted) comes from providing these IT services, like developing custom software or managing cloud computing, to clients all over the world. This matters because many large corporations rely on experts like Wipro to run their complex tech operations, creating a steady demand for its services across various industries.
How the company got here
Wipro began in 1945 in India, not as a technology company, but as a maker of vegetable and refined oils. After the founder's death, his son Azim Premji took over and started to diversify the company. Recognizing the rise of computers, Wipro entered the IT industry in the 1980s, initially making minicomputers. A major turning point was the shift to providing software services to companies overseas in the 1990s, which set the stage for its global growth. In 2012, Wipro separated its non-IT businesses to focus entirely on technology, consulting, and outsourcing services.
What it actually does
Wipro helps other businesses use technology to solve their problems and operate more efficiently. Think of them as a technology and consulting partner for large companies. For example, they might help a bank build a new mobile banking app, manage a retailer's online store, or use artificial intelligence (AI) to improve a factory's production. They provide a wide range of services from designing technology systems and providing advice (consulting) to managing a company's day-to-day computer operations.
IT Services
This is Wipro's largest and most important business, making up the vast majority of its revenue. It provides a wide array of technology services to companies in many industries like banking, healthcare, and manufacturing. These services include developing and maintaining software applications, moving a company's data and computing to the cloud (a network of remote servers), and protecting them from cyberattacks. Essentially, businesses pay Wipro to manage their complex technology needs so they can focus on their own core operations.
IT Products
This is a smaller part of Wipro's business that primarily serves the Indian market. In this segment, Wipro sells technology products made by other companies. This includes things like servers, networking equipment, and software for businesses, government agencies, and schools. Think of it as a reseller of technology hardware and software, providing the essential tools that businesses need to run their IT systems.
What management is betting on now
Wipro is heavily focused on artificial intelligence (AI), aiming to build it into the services it offers to clients to help them transform their businesses. They are also making a big push into cloud computing, helping their customers move their operations to more flexible and efficient cloud platforms. Another key area is strengthening their consulting services, which means providing more high-level advice to businesses on how to use technology to achieve their goals. The company is also concentrating on winning larger, long-term contracts with major clients in key industries and geographic markets.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $3.67 vs current price $1.81
Wall Street consensus is the average analyst price target: $1.75 (-52.4% lower than our fair-value estimate).
Our most-likely fair value is $3.67 a share — about 102.9% above today's price of $1.81, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $1.9B - more cash than debt. Interest coverage 18.9x.
Net debt
$-1.93B
Interest coverage
18.86x
Wipro Limited's profit covers its interest bill about 18.9 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
WIT
BASELINE
Wipro Limited
Total debt $2.25B Interest coverage 18.86x This is the baseline the peer rows are being compared against.
Total debt $923.00M Interest coverage 87.00x +361% vs WIT Carries about 4.6x more debt cushion than WIT.
Total debt $2.09B Interest coverage 89.92x +377% vs WIT Carries about 4.8x more debt cushion than WIT.
Total debt $8.39B Interest coverage 47.43x +152% vs WIT Carries about 2.5x more debt cushion than WIT.
Total debt $4.17B Interest coverage 1.39x -93% vs WIT Carries about 13.6x less debt cushion than WIT.
Total debt $1.41B Interest coverage 10.34x -45% vs WIT Carries about 1.8x less debt cushion than WIT.
What you should know
The case for and against WIT
3 Rewards
2 Risks
Rewards
-
Revenue grew 4.0% last year.
-
Returns 16.1% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 6043.7% above its 5-year average P/E.
-
Insider ownership is only 0.0% (peer median: 0.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
13.92x
Forward P/E
12.13x
P/B
2.20x
P/S
0.02x
EV/EBITDA
-0.93x
PEG ratio
1.41x
Profitability
How much profit each dollar creates
Gross margin
29.0%
Operating margin
15.7%
Net margin
13.9%
ROE
16.1%
ROA
7.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.27x
Current ratio
1.67x
Quick ratio
1.57x
Total debt
$2.25B
Total cash
$4.18B
Growth
How the business has been compounding
Revenue TTM
$10.05B
Revenue 5Y CAGR
0.8%
EPS TTM
0.13
EPS 5Y CAGR
6.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.58B
Free CF TTM
$1.42B
FCF margin
14.1%
Dividend
Shareholder payout
Yield
4.8%
Payout ratio
87.7%
Last ex-div date
2026-07-27