Wipro Ltd.
ISIN: INE075A01022 • Market Cap: ₹1.78 Lakh Cr
The 5-Pillar Quality Audit for Wipro Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (19.2%), Return on Capital Employed (18.7%), and equity compounding (15.0%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.19 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (1.9%) and 3Y PAT CAGR (6.3%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 13.45 vs PEG of 2.26 and Dividend Yield of 6.1%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 72.6%, backed by 14.1% institutional ownership.
Key Fundamental Strengths
Attractive Valuation Margin (P/E: 13.45)
Trading at a P/E multiple of 13.45, the stock offers a favourable risk-reward entry for quality compounding.
Consistent Market Standing (Large Cap)
Established player in the Information Technology sector with an overall fundamental quality score of 71/100.
Areas to Watch & Potential Risks
Topline Stagnation (3Y Sales CAGR: 1.9%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Sectoral & Macro Headwinds (Information Technology)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Information Technology space.
Quantitative Strategy Eligibility
Checking WIPRO against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 71/100 and clean gearing.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Information Technology Sector Peer Comparison
Compare WIPRO directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Wipro Ltd. (WIPRO)Current | 71/100 | ₹1.78 Lakh Cr | 13.45 | 18.7% | 0.19 | — |
| Tata Consultancy Services Ltd. (TCS) | 79/100 | ₹8.27 Lakh Cr | 16.62 | 60.9% | 0.00 | View |
| Infosys Ltd. (INFY) | 78/100 | ₹4.53 Lakh Cr | 14.97 | 41.1% | 0.00 | View |
| HCL Technologies Ltd. (HCLTECH) | 75/100 | ₹3.59 Lakh Cr | 20.60 | 28.7% | 0.00 | View |
| Tech Mahindra Ltd. (TECHM) | 75/100 | ₹1.55 Lakh Cr | 30.20 | 22.0% | 0.00 | View |
| LTM Ltd. (LTM) | 77/100 | ₹1.35 Lakh Cr | 25.72 | 28.7% | 0.00 | View |
Frequently Asked Questions: Wipro Ltd.
Q:What is the 5-Pillar Fundamental Score for Wipro Ltd. (WIPRO)?
Wipro Ltd. has a RupeeTools Fundamental Score of 71/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (76/100), Financial Health (79/100), Growth (48/100), Valuation (82/100), and Ownership Quality (72/100).
Q:Is WIPRO fundamentally strong for long-term investment?
Yes, WIPRO exhibits solid fundamental strength with a 71/100 score, driven by a return on equity of 15.0% and a debt-to-equity ratio of 0.19.
Q:Does WIPRO pass the Coffee Can Investing filter?
No. WIPRO does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does WIPRO compare against other Information Technology peers?
Within India's Information Technology sector, WIPRO trades at a P/E of 13.45 and generates an ROCE of 18.7%. Compare its 5-Pillar score of 71/100 against top sector peers like Tata Consultancy Services Ltd. (79/100), Infosys Ltd. (78/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.