Wipro (WIPRO)

FairStock Score: 63/100 — STEADY

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Here is what you need to know about Wipro. It is a large IT services company with a market cap around Rs 1.82 lakh crore and a dividend yield of 4.35%. The balance sheet is solid: debt-to-equity is only 0.27, free cash flow is around Rs 11,590 crore, and promoters own 72.62%, which means insiders have meaningful skin in the game. Profitability is reasonable, with return on equity about 16.1% and return on capital employed about 19.5%. The core problem is growth: reported profit fell 22.47% year-on-year and sales grew only 0.25%. That is why the model category is slow grower and the FAIRSTOCK score is just 4 out of 10. Let me translate the quant signals. The mean-reversion model gives a z-score of negative 1.53 with a half-life of around five days. In simple terms, the stock tends to come back to its average price over short windows. It is currently below the 20-day average in that model, so the signal is mildly bullish. But the Hurst exponent and variance ratio are not available, so I cannot confirm the mean-reversion signal with the usual confirmation tests. Also, the data shows a small mismatch in prices because of different dates: the fundamental price is around Rs 184, while the latest price action closes near Rs 190, and the valuation signal uses about Rs 202. I treat the realistic price as Rs 184 to Rs 190. The volume picture is mixed. Liquidity is excellent, and the market impact is very low, so this stock is easy to buy and sell. However, the five-day volume imbalance is minus 94%, which often points to institutional selling even when the price is bouncing. The volume anomaly ratio is close to 0.57, which is neutral, so the negative imbalance is the bigger concern. Recent price action shows a sharp move from around Rs 157 to Rs 190, including an 8.25% jump on October 16. After that kind of rebound, short-term upside is often limited. Valuation supports that caution: the Graham number is about Rs 152, while the current price is around Rs 184 to Rs 190. That leaves a negative margin of safety of about 33%, meaning you are not buying at a discount. For a retail investor, Wipro is best seen as an income-oriented hold. The 4.35% dividend yield is attractive if you want cash flow, but I would not expect fast capital gains unless profit growth turns around. If you do buy, keep the position small—half-Kelly or less, roughly 1% to 2% of your portfolio. My recommendation is a hold: existing investors can stay for the dividend, but new investors should wait for a pullback toward Rs 165 to Rs 170 or for clear evidence that sales and profit growth are accelerating.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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