| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | -100 |
| Intrinsic value (DCF) | 1.50 | -41 |
| Graham-Dodd Method | 0.20 | -92 |
| Graham Formula | 1.00 | -60 |
Wipro Limited (NYSE: WIT) is a global leader in IT, consulting, and business process services, headquartered in Bengaluru, India. With a diversified portfolio spanning IT Services, IT Products, and India State Run Enterprise Services (ISRE), Wipro serves clients across industries such as healthcare, banking, retail, and energy. The company specializes in digital transformation, cloud computing, AI-driven analytics, and cybersecurity, helping enterprises optimize operations and drive innovation. Wipro’s IT Services segment delivers end-to-end solutions, including application development, systems integration, and infrastructure management, while its IT Products division provides third-party enterprise hardware and software solutions. The ISRE segment focuses on government and public sector digitalization in India. Founded in 1945, Wipro has grown into a $29.9B market cap firm, leveraging its deep domain expertise and global delivery model to compete in the high-growth IT services market. Its strong presence in North America, Europe, and Asia-Pacific positions it as a key player in the $1T+ global IT services industry.
Wipro offers moderate growth potential with stable margins, supported by its diversified client base and recurring revenue streams. Strengths include a strong balance sheet (₹96.95B cash) and a 0.72 beta, indicating lower volatility than the broader market. However, revenue growth lags behind peers like TCS and Infosys, with FY2024 revenue at ₹897.6B (+2.3% YoY). Net margins of ~12.3% are healthy but face pressure from wage inflation and pricing competition. The dividend yield (~0.5%) is modest. Key risks include exposure to slower-growing legacy services (60% of revenue) and geopolitical headwinds in key markets like the U.S. and Europe. Investors should monitor the company’s ability to scale high-margin digital services (35% of revenue) and its $1B+ acquisition strategy to bolster cloud/AI capabilities.
Wipro competes in the crowded IT services sector with a mid-tier positioning, differentiated by its vertical-specific solutions (e.g., healthcare IT, BFSI modernization) and hybrid delivery model combining offshore efficiency with localized consulting. Its competitive advantages include: (1) Strong client retention (top 10 clients contribute ~20% revenue) due to embedded relationships in regulated industries like banking and utilities; (2) Investments in Wipro FullStride Cloud (launched 2022) and AI platforms like Topcoder; (3) Cost leadership with 78% delivery workforce in India. However, Wipro trails larger Indian peers in scale (TCS’s revenue is 3.5x higher) and digital transformation mindshare. Unlike Accenture’s consulting-led model, Wipro lacks dominance in C-suite advisory. The company is pivoting toward high-growth areas (cloud, cybersecurity) but faces integration risks from acquisitions like Capco ($1.45B, 2021). Competitive threats include hyperscalers (AWS, Azure) encroaching on managed services and automation reducing traditional outsourcing demand. Wipro’s ‘Partner Ecosystem’ (e.g., partnerships with SAP, Salesforce) helps mitigate this but requires continued R&D spend (2.1% of revenue vs. Infosys’ 2.4%).