Wipro Fundamental Analysis: Beneath the Surface

Wipro Ltd- About The Company

Assessing Wipro’s Growth Prospects

Wipro Fundamental Analysis.
Growth Projection of The IT & BPM sector by 2025. Source: ibef.org/ NASSCOM Report

India‘s IT and business services market is projected to reach US$ 19.93 billion by 2025. In the Union Budget 2023-24, the allocation for IT and telecom sector stood at Rs. 97,579.05 crore (US$ 11.77 billion).

Wipro Fundamental Analysis- Essentials and Financials

Evaluating Wipro’s Financial Statements

Profit & Loss | Income Statements

Wipro fundamental analysis.  Income Statements
Profit & Loss | Income Statements of Wipro in last 10 years. Source: https://www.screener.in/

Cash Flows Statements

Cash Flows statements provides the information about the inflow and outflow of cash in a company over a specific period of time. Now, Cash flows from the Operating activities is an important aspect as it tells about cash flows from the company’s core operations, such as cash received from customers and cash paid to suppliers and employees. A positive and growing cashflows is expected from a company for healthy growth.

Over the span of 10 years, that is March 2013 to March 2023, the Cash flow from operating activities of Wipro has been rising consistently from 6,394 crores to 13,060 crores. A rise of approximately 6,666 crores, that is, approximately 2.04 times over the 10-year period. This demonstrates the company’s ability to generate more cash from its core operations, which is a positive trend indicating healthy growth.

Wipro fundamental analysis. Cash Flow statements.
Cash Flow statements of Wipro Ltd in the last 10 years. Source: screener.in

Net cash flow, which represents the overall change in cash for that period has been declining and is in negative figures. This indicates that the company had higher cash outflows than inflows during that period. It’s essential to analyze additional factors like investments, financing activities, and capital expenditures, which could have contributed to the negative net cash flow.

The organisation has to evaluate its cash management procedures and other aspects of cash flow, even if the cash flow from operational operations has been increasing. Analysis of the underlying reasons of the negative net cash flow along with evaluation of its impact on the business as a whole are essential.

Comparison Between Income Statements And Cash Flows Statements.

Wipro fundamental analysis: Key Performance Indicators

Profitability Ratios

Key Metrics

Company has delivered a profit growth of 7% CAGR over last 5 years and a profit growth of -7% trailing twelve months. Over the last 3 years, the IT giant’s share price is up by 21%. And over the last one year, it is down by -6%. Share price has moved down from Rs 420.5 to Rs 396.1, registering a Loss of Rs 24.35.

The TTM PEG Ratio is -2.7, indicating a negative value, which may raise concerns for investors. A negative PEG ratio suggests that the company’s earnings growth is not keeping up with its stock price performance, potentially leading to an overvalued stock.

Wipro Fundamental analysis
Income Graph of Wipro. Source: investing.com

A Closer Look At Company’s Annual Income Statement

Financial report of Wipro.
Financial report of Wipro. Source: https://www.google.com/finance



The blog is meant for informational purposes and serves the general analysis of the stocks. Contents provided here are based on careful research and analysis utilizing the fundamental and technical indicators over a period of time. The post does not consist any direct recommendation about Investing or trading in the securities market. Thorough research and careful consideration are necessary for individuals to fulfill their personal responsibility in making financial decisions. Seeking professional advice before making any financial decisions is always advisable.

2 thoughts on “Wipro Fundamental Analysis: Beneath the Surface”

  1. Pingback: ITC Fundamental Analysis: Building a Solid Strategy - Daily stocks Dekho

  2. Pingback: Exploring the Best Stocks Between 50 to 100 Rs: Hidden Gems - Daily stocks Dekho

Comments are closed.

Scroll to Top