Wipro (WIPRO)

FairStock Score: 63/100 — STEADY

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 1/1

Key Financials

Investment Thesis

Wipro is a large, liquid IT-services slow grower with a clean balance sheet and a 4.35% dividend yield, but profit growth is negative and the stock still trades above a conservative Graham Number. Quant signals show excellent liquidity and a short-term mean-reversion setup, but heavy 5-day volume imbalance argues against fresh longs. Net-net, it is a HOLD for existing income-oriented investors but not a compelling buy at current levels.

Rating: HOLD (MEDIUM confidence) — 12M horizon

Strengths

• Low leverage with Debt/Equity of 0.27 and sound financial health signals.
• Strong liquidity: liquidity score 99.6/100 and market impact of only 4.3 bps for Rs 1 crore.
• Healthy ROCE of 19.51% and ROE of 16.13% show efficient capital use.
• Dividend yield of 4.35% provides income support.
• High promoter holding of 72.62% aligns management with minority shareholders.

Concerns

• Sales growth is roughly 0.25% YoY; revenue is stagnant.
• Profit growth is -22.47% YoY; earnings are contracting.
• No margin of safety: current price is above the Graham Number of Rs 152.46.
• Volume imbalance of -94.2% over 5 days points to institutional selling.
• 52-week drawdown of about 33% signals weak long-term momentum.

AI Analysis

Here is what you need to know about Wipro. It is a large IT services company trading at Rs 184 with a P/E of about 14.6 and a dividend yield of 4.35%. The balance sheet is solid: debt to equity is only 0.27, ROCE is close to 19.5%, and ROE is about 16%. But the big problem is growth. Sales growth is nearly flat at 0.25%, and profit growth is negative at minus 22.47% year on year. That is why the FairStock category is Slow Grower and the score is only 4 out of 10. Quantitatively, the stock has an interesting conflict. The mean-reversion model shows a z-score of minus 1.53 with a half-life of about five days. In plain English, the stock has fallen below its short-term average and usually that can cause a bounce. But the volume picture is not confirming. The five-day volume imbalance is strongly negative at minus 94%, which means institutional investors have been selling heavily. Liquidity is excellent—score of 99.6—and one crore rupees moves the stock only about four basis points, so these sellers can exit without major slippage. That is not a bullish setup. Valuation also matters. The Graham Number comes out to about Rs 152, but the stock is at Rs 184, so there is still no margin of safety. It is cheaper than it was above Rs 200, but not cheap enough. For an existing investor who wants the dividend, holding is okay, but I would not add. For a short-term trader, a bounce toward Rs 182 is possible, but I would only attempt it with a very small position—half-Kelly would suggest no more than one percent of capital. My recommendation is HOLD. Wipro is a stable, liquid company, but it is not a fast grower, and right now the quant signals and fundamentals do not justify aggressive buying.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer