Wipro Limited

Technology — Information Technology Services · NSE

₹184.40+₹10.35 (+5.95%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: Strong business and financial position, with modest growth. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:55 pm

Understanding the Business

Company site ↗

The 60-second version of Wipro Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Wipro Limited operates as an information technology (IT), consulting, and business process services company worldwide. It operates through IT Services and IT Products segments.

IndustryInformation Technology Services

SectorTechnology

Employees2,40,000

Annual revenue₹92,624 Cr

How does it make money?

Turns over ₹92,624 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 2,40,000 employees supports ₹38.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹38.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, TECH MAHINDRA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 17.8% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE32.0%

What is the outlook?

36 analysts covering the stock expect revenue to grow about 3.0% and earnings to grow about 5.0% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+3.0%

Est. earnings growth+5.0%

Analysts36

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +2% while net margin moved +14% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+2%

Margin effect+14%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 0.8% — barely ahead of inflation
✗ Profit CAGR of only 5.2%

Quality vs. Valuation

Company Quality

69/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

71/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

14.5x

3Y Median

21.2x

40 monthly readings · mean 21.1x · range 12.6x–30.0x

Sector Median

18.8x

median of 4 sector peers

🟢Current valuation is approximately 32% below its 3y median of 21.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 23% below the peer median of 18.8x.

vs. its own history

Cheap

21.2x median over 40 months · -32%

vs. sector peers

Cheap

18.8x median of 4 peers · -23%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.6x

PEG

2.81

What's Good / What's Bad

🟢 What's Going Well2

Very low debt
Debt/Equity of 0.28x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 high

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 32% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 23% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹13,371 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 0.8% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 20%✓ 21.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 0.8% CAGR
Latest reported year was 9.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹13,371 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 15%✓ 17.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

8 good · 3 neutral · 0 weak

Market Cap

₹1.82 L Cr

Large Cap

Large, widely-covered business — typically the steadiest of the bands

P/E (Trailing)

14.5x

Cheap

Cheap against the generic band

P/B Ratio

2.30x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹12.73

Profitable

Profitable on a per-share basis

ROE

15.9%

Strong

Strong capital efficiency

ROCE

17.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.28x

Low

Conservative leverage

Revenue Growth (YoY)

9.1%

Modest

Modest growth

Profit Growth (YoY)

4.5%

Modest

Slow profit growth

Dividend Yield

4.34%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹10,491 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

13.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

7.3%

Average

Average asset productivity

Operating Margin

16.2%

Good

Healthy core-business profitability

Net Margin

13.6%

Good

Strong bottom-line conversion

Current Ratio

1.70

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.41

Defensive

Steadier than the market

52W Range Position

24%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

164.5 / 172.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

73.2

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹90,488 Cr	₹89,760 Cr	₹89,088 Cr	₹92,624 Cr	+0.8%
EBITDA	₹18,312 Cr	₹18,478 Cr	₹20,221 Cr	₹20,019 Cr	+3.0%
EBITDA Margin	20.2%	20.6%	22.7%	21.6%	—
PAT (Net Profit)	₹11,350 Cr	₹11,045 Cr	₹13,135 Cr	₹13,197 Cr	+5.2%
EPS	₹10.34	₹10.41	₹12.52	₹12.56	+6.7%
ROE	14.5%	14.7%	15.9%	14.9%	—
ROCE	17.1%	17.3%	18.4%	17.8%	—
Total Debt	₹17,467 Cr	₹16,465 Cr	₹19,204 Cr	₹20,291 Cr	+5.1%
Free Cash Flow	₹11,577 Cr	₹16,571 Cr	₹15,439 Cr	₹13,371 Cr	+4.9%

🟡 Revenue has been broadly flat over 3 years (0.8% a year).

🟢 EBITDA has grown at 3.0% a year over 3 years.

🟢 EBITDA Margin has risen from 20.2% to 21.6% over 3 years (+1.4 pts).

🟢 PAT (Net Profit) has grown at 5.2% a year over 3 years.

🟢 EPS has grown at 6.7% a year over 3 years.

🟡 ROE has held roughly flat at 14.9% over 3 years.

🟡 ROCE has held roughly flat at 17.8% over 3 years.

🔴 Total Debt has grown at 5.1% a year over 3 years.

🟢 Free Cash Flow has grown at 4.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1.42 L Cr

Total Liabilities

₹53,139 Cr

Cash & Equivalents

₹10,556 Cr

Operating Cash Flow

₹14,932 Cr

Capex

-₹1,560 Cr

Shareholding (proxy)

Institutional Holding

10.4%

Insider Holding

72.7%

Corporate Actions

Next Earnings

15 Jan 2027

Dividend Rate

₹8

Ex-Dividend Date

27 Jul 2026

Analyst Consensus

Recommendations

8 Buy · 13 Hold · 19 Sell

Target Price (Mean)

₹176.1

-4.5% vs CMP

Target Range

₹137 – ₹226

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
TECH MAHINDRA LIMITED	28.8x	19.2%

Recent News

1 positive3 mixed2 general

Wipro share price headed for best week in six years, but stock has most 'sell' ratings among largecap IT - CNBC TV18

LinkedIn, 16 Oct

Wipro shares gain nearly 2% after Q2 results; brokerages remain bearish

Business Standard, 16 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Wipro share price headed for best week in six years, but stock has most 'sell' ratings among largecap IT

CNBC TV18, 16 Oct

Wipro Share Price Rises 2.01% to Rs 177.2 Today

Univest, 16 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Wipro Shares Gain After Its Profit Rises 7% In September Quarter

NDTV Profit, 18 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Wipro (NSE:WIPRO) Q2 FY27 Earnings, Margins and Share Price Rise

Kalkine India, 16 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability · Valuation · Risk

WeakGrowth

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑