Last Updated: 13 Sep 2024
Executive Summary
Wipro Limited ADR (WIT), a global IT and business services provider, has a market capitalization of $33.23 billion and a share price of $6.36. Despite a recent dip in quarterly revenue growth, the company's strong fundamentals, including a high profit margin and return on equity, indicate potential for long-term growth.
Company Overview
Wipro provides a wide range of IT services, including consulting, systems integration, software development, and infrastructure management. The company has a global presence with operations in over 60 countries and a workforce of over 250,000 employees.
Fundamental Analysis
Revenue: Wipro's revenue for the latest twelve months (TTM) was $88.89 billion, with a quarterly growth rate of -0.038%.
Earnings: The company's diluted earnings per share (EPS) for TTM was $0.26, with a quarterly growth rate of 0.119%.
Profitability: Wipro's profit margin and operating margin for TTM were 0.126 and 0.165, respectively, indicating strong profitability.
Valuation: The company's trailing price-to-earnings (PE) ratio of 24.46 and forward PE ratio of 22.32 are in line with industry peers.
Technical Analysis
Moving Averages: Wipro's 50-day moving average of $6.2 and 200-day moving average of $5.76 suggest a sideways trend.
Support and Resistance: The stock has support around $5.4 and resistance around $7.01.
Short Term Outlook
In the short term, Wipro's stock price may remain range-bound due to concerns about the impact of the global economic slowdown on its business. However, the company's strong order book and cost optimization initiatives could provide support.
Long Term Outlook
Wipro's long-term outlook is positive due to the growing demand for IT services and the company's focus on digital transformation and cloud computing. The company's investments in research and development and its global presence should also contribute to its long-term growth.
Analyst Recommendations
Analysts are generally cautious on Wipro's stock in the short term due to the uncertain economic environment. However, they remain positive on the company's long-term prospects. Two analysts rate the stock as "Hold," while four rate it as "Sell" or "Strong Sell."
