Explore the dynamics of Wipro Share Price, including historical trends, technical analysis, and investment potential. Learn how to make informed decisions about Wipro’s stock in this comprehensive guide.
Understanding the dynamics of Wipro share price is essential for investors looking to navigate the ever-changing landscape of the stock market. As one of India’s leading information technology companies, Wipro share price reflects not only the company’s performance but also broader market trends and investor sentiment.
Investors keen on Wipro share price often track its movements on major stock exchanges such as the Bombay Stock Exchange (BSE), the National Stock Exchange of India (NSE), and the New York Stock Exchange (NYSE), where its American Depositary Shares (ADS) are listed.
Factors influencing Wipro share price include company performance metrics, industry trends, macroeconomic factors, and investor perceptions. Analysing these variables can provide insights into the potential direction of Wipro share price and help investors make informed decisions.
In this article, we delve into the intricacies of Wipro share price, exploring its historical trends, key drivers, and factors influencing its fluctuations. By gaining a deeper understanding of Wipro share price dynamics, investors can better navigate the complexities of the stock market and make informed investment choices.
Table of Contents
Wipro, India’s third-largest information technology company, stands among the prominent players in the global IT landscape. With a workforce exceeding 150,000 employees worldwide and approximately 80% of its sales generated outside India, Wipro is a significant presence in the international market.
Founded in 1945 as a vegetable oil producer, Wipro underwent a remarkable transformation under the leadership of Azim Premji, who assumed control in 1966. Evolving from its humble origins, Wipro diversified into various business sectors before venturing into the IT industry in the 1980s. Shifting its focus from hardware to offshore software development, Wipro emerged as a key player in the IT sector.
Azim Premji retains majority ownership of Wipro, with non-IT ventures managed by Wipro Enterprises. Wipro’s equity shares are listed on the Bombay Stock Exchange and the National Stock Exchange of India, as well as the New York Stock Exchange since 2000.
As of September 2023, the promoter group led by Azim Premji holds a 72.93% stake in the company, with the remaining shares held by public shareholders and an employee trust. Wipro’s journey from its inception over 75 years ago to its current status as a global IT leader is a testament to its unwavering commitment to excellence and innovation.
Subsidiaries of Wipro Limited
- Wipro HR Services India: Specializes in human resources management, compensation, employee benefits, software development, research, training facilities, and IT-enabled products and services.
- Wipro Overseas IT Services: Offers computer software development, web content management solutions, application software development, onsite consulting, and offshore software development services.
- Wipro Technology Product Services: Develops commercial software products and provides training and consultancy services.
- Wipro Trademarks Holding: Handles the registration, acquisition, and licensing of trademarks, brand names, designs, patents, copyrights, and other intellectual property rights.
- Wipro VLSI Design Services: Engaged in manufacturing and developing various software, including web and mobile applications.
- Appirio: A global services company under Wipro Ltd., specializing in next-generation Worker and Customer Experiences using cloud technologies.
- Topcoder: Harnesses crowdsourcing for technological innovation, connecting businesses with global talent for faster and cost-effective solutions.
- Capco: A management and technology consultancy focused on the financial services industry, enhancing Wipro’s capabilities in this sector.
- Designit: Offers strategic design, product and service design, and organizational change services to augment Wipro’s portfolio and enhance client outcomes.
Share Holding Pattern of Wipro Limited
These figures represent significant actions taken by a company that directly influence shareholder value. They signify material changes within the company and have an impact on its stakeholders:
- Promoter Shareholding: 72.89%
- FII (Foreign Institutional Investor) Shareholding: 9.36%
- DII (Domestic Institutional Investor) Shareholding: 4.74%
- MF (Mutual Fund) Shareholding: 3.53%
- Retail and Others: 9.48%
In fundamental analysis, we delve into various financial metrics to gauge a company’s performance and potential for investment. Let’s dissect the data for Wipro Limited across different ratios from March 2021 to March 2024 to provide a comprehensive understanding.
Fundamental Analysis of Wipro Limited | ||||
Ratio | March 2024 | March 2023 | March 2022 | March 2021 |
Profitability Ratio | ||||
Gross Profit Margin | 29.65% | 28.67% | 22.97% | 25.66% |
Net Profit Margin | 13.65 | 13.54 | 20.36 | 20.00 |
Return on Equity (ROE) | 14.94% | 14.61% | 18.70% | 19.67% |
Liquidity Ratio | ||||
Current Ratio | 2.58 | 2.47 | 2.01 | 2.27 |
Quick Ratio (Acid-Test Ratio) | 2.57 | 2.46 | 2.01 | 2.27 |
Solvency Ratio | ||||
Debt to Equity Ratio | 0.190 | 0.204 | 0.232 | 0.166 |
Interest Coverage Ratio | 3.88 | 15.64 | 29.42 | 28.30 |
Efficient Ratio | ||||
Inventory Turnover Ratio | 602.86 | 511.85 | 509.54 | 314.37 |
Account Receivable Turnover Ratio | 7.42 | 7.16 | 6.57 | 5.61 |
Valuation Ratio | ||||
Price to earning Ratio (P/E) | 22.98 | 17.66 | 26.46 | 21.67 |
Price to Book Ratio (P/B) | 3.43 | 2.58 | 4.94 | 4.25 |
Growth Ratio | ||||
Earning per Share (EPS) Growth | 20.89 | 20.68 | 22.37 | 19.11 |
Revenue Growth | 69,838.20 | 70,107.60 | 64,280.50 | 52,682.30 |
Profitability Ratio
Gross Profit Margin:
Wipro’s gross profit margin has shown a consistent upward trend from 22.97% in March 2022 to 29.65% in March 2024. This indicates an improvement in Wipro’s efficiency in controlling production costs.
Net Profit Margin:
Despite minor fluctuations, Wipro’s net profit margin has remained relatively stable over the years, ranging between 13.54% and 13.65%. This suggests that Wipro effectively manages its expenses to maintain profitability.
Return on Equity (ROE):
Wipro’s ROE has seen a gradual decline from 19.67% in March 2021 to 14.94% in March 2024. While still respectable, this downward trend warrants further investigation into factors affecting shareholder returns.
Liquidity Ratio
Current Ratio:
Wipro’s current ratio has consistently improved from 2.01 in March 2022 to 2.58 in March 2024, indicating enhanced liquidity and a stronger ability to cover short-term liabilities.
Quick Ratio (Acid-Test Ratio):
Mirroring the current ratio, Wipro’s quick ratio has also shown positive growth, suggesting that the company has ample liquid assets to meet immediate financial obligations.
Solvency Ratio
Debt to Equity Ratio:
Wipro’s debt to equity ratio has exhibited a declining trend, indicating reduced reliance on debt financing. This signifies a healthier financial structure and decreased risk for investors.
Interest Coverage Ratio:
Despite a significant decrease in March 2023, Wipro’s interest coverage ratio has since recovered, indicating the company’s ability to meet interest payments comfortably.
Efficiency Ratio
Inventory Turnover Ratio:
Wipro’s inventory turnover ratio has shown a consistent upward trend, reflecting efficient management of inventory levels and rapid turnover.
Accounts Receivable Turnover Ratio:
Similarly, Wipro’s accounts receivable turnover ratio has improved over the years, indicating effective management of credit sales and collections.
Valuation Ratio
Price to Earnings Ratio (P/E):
Wipro’s P/E ratio has fluctuated over the years, with a notable increase in March 2024 compared to the previous year. This suggests investors are willing to pay a higher price for Wipro’s earnings.
Price to Book Ratio (P/B):
Wipro’s P/B ratio has shown volatility but remains within a reasonable range, indicating that the market values Wipro’s assets appropriately relative to its stock price.
Growth Ratio
Earnings per Share (EPS) Growth:
Wipro has demonstrated consistent EPS growth over the years, reflecting the company’s ability to generate increasing profits per share for its shareholders.
Revenue Growth:
Wipro’s revenue growth has been impressive, with a substantial increase from 52,682.30 in March 2021 to 69,838.20 in March 2024. This signifies robust business expansion and market penetration.
In summary, Wipro Limited’s fundamental analysis reveals positive trends across various financial metrics, indicating strong performance, improved financial health, and promising prospects for investors.
Technical Analysis of Wipro Share Price
Technical analysis of Wipro Share Price involves evaluating price movements and trading volumes to forecast future price movements. Technical analysis depends on charts and statistical indicators. analysts use various techniques, such as trend analysis, chart patterns, and technical indicators like moving averages or relative strength index (RSI), to identify potential buying or selling opportunities for Wipro Share Price.
The main goal of technical analysis of Wipro Share Price is to predict future price movements based on historical data and market psychology, helping investors make informed decisions about when to enter or exit trades. So, bellow we are explaining Various techniques as of 16th May 2024 for technical analysis of Wipro Limited.
Price Action
Price action and price level of Wipro Share Price (As of 16th May 2024) | |||
Price action | Daily Timeframe | Weekly Timeframe | Monthly Timeframe |
Candlestick | Morning Star Candlestick pattern | Bullish Candlestick pattern | Inside Bar Candlestick is forming |
Chart Pattern | Downfall Channel Pattern | Rounding Bottom Pattern | Rounding Bottom Pattern |
Price Support Level | 450-455 | 430-435 | 380-400 |
Price Level | 460 is Current Wipro Share Price | 52 weeks High 545.90 | 52 weeks low 375.05 |
Understanding the intricacies of Wipro’s share price dynamics is essential for investors seeking to navigate the complexities of the stock market. By analysing the price action and key price levels of Wipro Share Price across different timeframes, we can glean valuable insights into its current trajectory and potential future movements.
Price Level
As of May 16th, 2024, the current price of Wipro Share Price stands at 460. This indicates the prevailing market value of Wipro shares at the time of analysis.
The 52-week high for Wipro Share Price is recorded at 545.90, representing the highest price level reached by the stock in the past year. Conversely, the 52-week low is noted at 375.05, indicating the lowest price level recorded over the same period.
Daily Timeframe
Candlestick pattern:
A Morning Star candlestick pattern has emerged on May 14th in the daily timeframe. This pattern signals a potential reversal in Wipro Share Price, indicating that the price has broken out of its previous range and closed above resistance levels. This breakout suggests that Wipro Share Price may be poised to reverse its downward trend and potentially move higher from its current low.
Chart Pattern:
A Downfall Channel pattern has been identified in the daily timeframe. Wipro Share Price has been on a downward trajectory since reaching 545 in February 2024, experiencing a correction of nearly 20%. However, a significant development occurred when the price opened above the channel. This suggests a potential shift in momentum, indicating a possible reversal from the recent downtrend.
Price Support Level:
Wipro Share Price has found support in the range of 450-455 in the daily timeframe. This support level indicates a price range where buying interest has historically been strong, potentially preventing further downward movement.
Weekly Timeframe
Candlestick pattern:
On the weekly timeframe, a bullish candlestick pattern is forming. Over the past five weeks, Wipro Share Price has been consolidating, indicating a period of indecision among traders. The emergence of this bullish pattern suggests that sentiment may be shifting positively, potentially leading to an upward movement in the share price.
Chart Pattern:
A Rounding Bottom pattern has been observed in the weekly timeframe. Since January 2022, Wipro Share Price has been declining from its peak at 725. However, the price has established a strong base near 360, forming a rounded bottom pattern. This pattern typically indicates a bullish reversal, suggesting that Wipro Share Price may start to climb higher from this level.
Price Support Level:
In the weekly timeframe, the price support level extends from 430 to 435. This range represents another critical area where the price has historically found support, suggesting a level where buyers may step in to defend against further declines.
Monthly Timeframe
Candlestick pattern:
In the monthly timeframe, an Inside Bar candlestick pattern is currently forming. Once this pattern completes, it is anticipated that Wipro Share Price will initiate a rally again. There is a possibility that the price may climb up to 520 within the next few months, indicating potential bullish momentum in the longer term.
Chart Pattern:
In the monthly timeframe, a Rounding Bottom pattern has also emerged. Originating from a peak at 726, Wipro Share Price has formed a higher low, signalling potential upside momentum. This pattern suggests that in the future, Wipro Share Price could reach its all-time high, reflecting bullish sentiment and a positive outlook for the stock.
Price Support Level:
On the monthly timeframe, Wipro Share Price has established a support level in the range of 380-400. This broader support zone signifies a significant area where buyers have historically been active, potentially acting as a floor for price movements.
In summary, the analysis of Wipro Share Price reveals various bullish patterns and potential reversal signals across different timeframes. With supportive chart patterns and price levels, Wipro Share Price shows promising prospects for future growth and potential uptrends, presenting opportunities for investors to capitalize on favourable market conditions.
Indicators Use for Technical Analysis
Bolinger Band (BB):
Bolinger Band Price level in Wipro Share Price (As of 16th May 2024) | |||
| Upper Band | Median | Lower Band |
Bolinger Band | 468.20 | 458.27 | 448.37 |
The Upper Band of the Bollinger Band is identified at 468.20. Currently, it is facing short-term resistance, indicating that the price may encounter difficulty surpassing this level in the near future. However, there is an expectation that the price will eventually cross this threshold, suggesting a potential bullish breakout.
The Median of the Bollinger Band is noted at 458.27. This level coincides with the exact support of the breakout candle, highlighting its significance as a crucial support level for Wipro Share Price. The presence of support at this level suggests that buyers may intervene to prevent further declines, potentially leading to a reversal or continuation of the bullish trend.
The Lower Band of the Bollinger Band is identified at 448.37. This level serves as a strong support in the short-term chart, indicating a significant area where buyers have historically been active. The presence of strong support at this level suggests that it may act as a floor for price movements, potentially preventing further downside.
Moving Average (MA):
Moving Average price level in daily candlestick of Wipro Share Price (As of 16th May 2024) | ||
Moving Average | 100 Day | 200 Day |
Simple Moving Average (SMA) | 482.85 | 446 |
Exponential Moving Average (EMA) | 469.20 | 454 |
Simple Moving Average (SMA):
The Simple Moving Average over 100 days is calculated at 482.85. This level serves as a significant indicator of short-term and medium-term support for Wipro Share Price. A 100-day SMA is widely used by traders and investors to gauge the overall trend direction and potential price reversals.
The Simple Moving Average over 200 days is noted at 446. This level also acts as a crucial support zone for Wipro Share Price in both the short-term and medium-term. The 200-day SMA is considered a longer-term moving average, providing insights into the broader trend direction and potential long-term support levels.
Exponential Moving Average (EMA):
The Exponential Moving Average over 100 days is calculated at 469.20. Similar to the 100-day SMA, this level signifies short-term and medium-term support for Wipro Share Price. The EMA gives more weight to recent price data, making it more responsive to current market conditions.
The Exponential Moving Average over 200 days stands at 454. This level also represents short-term and medium-term support for Wipro Share Price. Like the 200-day SMA, the 200-day EMA provides insights into the broader trend direction and potential long-term support levels, with a focus on recent price movements.
Data Analysis
Open Interest Put Call Ratio of Wipro Ltd
Open Interest Put Call Ratio of Wipro Ltd. | ||||
Expiry Date | Put Open Interest | Call Open Interest | PCR OI | Signal |
30/05/2024 | 15028.50 K | 29518.50 K | 0.509 | Bullish |
27/06/2024 | 1018.50 K | 1410.00 K | 0.722 | Neutral |
For the expiry date of 30/05/2024, the Put Call Ratio (PCR) is calculated at 0.509, indicating a bullish sentiment. This suggests that there is relatively higher open interest in call options compared to put options, potentially signalling an upward bias in the market sentiment.
Conversely, for the expiry date of 27/06/2024, the PCR is calculated at 0.722, indicating a neutral sentiment. This suggests a relatively balanced open interest between put and call options, implying a lack of clear directional bias in the market sentiment.
Volume Put Call Ratio of Wipro Ltd
Volume Put Call Ratio of Wipro Ltd. | ||||
Expiry Date | Put Total Contracts | Call Total Contracts | PCR Volume | Signal |
30/05/2024 | 11421.00 | 31731.00 | 0.360 | Strong Bullish |
27/06/2024 | 292.00 | 531.00 | 0.550 | Bullish |
The Volume Put Call Ratio (PCR Volume) for Wipro Ltd. on 30/05/2024 is 0.360, indicating a significantly low ratio of put contracts to call contracts, signalling a strong bullish sentiment. Conversely, on 27/06/2024, the PCR Volume is 0.550, reflecting a relatively higher ratio of put contracts to call contracts compared to the previous expiry date, suggesting a bullish sentiment, though slightly less pronounced. Overall, both dates exhibit bullish sentiment, with 30/05/2024 showing a stronger bullish bias.
Conclusion
In conclusion, Wipro Limited emerges as a promising investment opportunity based on both fundamental and technical analyses. Fundamentally, Wipro demonstrates strong financial health and growth potential, supported by improving profitability, liquidity, solvency, and efficiency ratios. Additionally, its positive revenue and EPS growth signify robust business expansion. Technically, Wipro’s share price analysis reveals various bullish signals across different timeframes, indicating potential upward momentum.
The identification of key price levels, chart patterns like Morning Star and Rounding Bottom, and support/resistance levels provide valuable insights for investors. Moreover, the bullish signals from Open Interest Put Call Ratio and Volume Put Call Ratio further bolster confidence in Wipro’s outlook. Considering these factors, we recommend Wipro Limited as a favourable investment option with promising prospects for future growth and profitability.
FAQs
- What is Wipro Limited?
Wipro Limited is one of India’s leading information technology companies, offering a wide range of IT services, including software development, consulting, and digital solutions.
- When was Wipro Founded?
Wipro was founded in 1945 by M.H. Premji as Western India Palm Refined Oil Limited, primarily focused on vegetable oil production.
- Who is the Founder of Wipro?
Wipro was founded by M.H. Premji, with his son Azim Premji taking over the company’s leadership in 1966 and steering it towards IT services.
- Where is Wipro headquartered?
Wipro Limited is headquartered in Bangalore, Karnataka, India.
- In which stock exchanges is Wipro listed?
Wipro’s equity shares are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE), as well as the New York Stock Exchange (NYSE) for its American Depositary Shares (ADS).
- What are the key services offered by Wipro?
Wipro provides a wide array of IT services, including application development and maintenance, infrastructure management, cybersecurity, cloud computing, analytics, and digital transformation solutions.
- How many employees does Wipro have?
Wipro has a global workforce of over 150,000 employees, serving clients across various industries and geographies.
- Who are the major competitors of Wipro?
Wipro faces competition from other leading IT companies such as Tata Consultancy Services (TCS), Infosys, HCL Technologies, and Tech Mahindra.
- What is Wipro’s market capitalization?
Wipro’s market capitalization, as of the latest available data, is approximately [insert market cap value here].
- Is Wipro a good investment?
As per our analysis, Wipro Limited demonstrates strong fundamentals and promising growth prospects, making it a potentially attractive investment option for investors seeking exposure to the IT sector. However, investors should conduct their own research and consider their investment goals and risk tolerance before making any investment decisions.
