WIT : NYSE : Technology
$9.78 | %
Today's Range: 9.76 - 9.89
Avg. Daily Volume: 709,700
10/21/16 - 4:02 PM ET

Financial Analysis

WIPRO LTD's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. WIPRO LTD has strong liquidity. Currently, the Quick Ratio is 1.97 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 7.33% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)2014.41924.45
EBITDA ($mil)392.56404.23
EBIT ($mil)323.85356.22
Net Income ($mil)303.93344.66

Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)4771.234354.8
Total Assets ($mil)11155.539947.38
Total Debt ($mil)1905.881286.11
Equity ($mil)7247.936752.76

Profitability Q1 FY16 Q1 FY15
Gross Profit Margin32.0633.21
EBITDA Margin19.4821.0
Operating Margin16.0818.51
Sales Turnover0.70.76
Return on Assets11.6713.9
Return on Equity17.9620.48
Debt Q1 FY16 Q1 FY15
Current Ratio2.372.68
Interest Expense6.14.97
Interest Coverage53.0671.69

Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)2456.182454.47
Div / share0.00.0
Book value / share2.952.75
Institutional Own % n/a n/a
Avg Daily Volume700635.0519523.0


HOLD. This stock's P/E ratio indicates a discount compared to an average of 26.79 for the IT Services industry and a discount compared to the S&P 500 average of 24.54. Conducting a second comparison, its price-to-book ratio of 3.36 indicates a premium versus the S&P 500 average of 2.72 and a significant discount versus the industry average of 7.94. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, WIPRO LTD proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
WIT 18.35 Peers 26.79   WIT 23.00 Peers 20.83

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

WIT is trading at a significant discount to its peers.


Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

WIT is trading at a premium to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
WIT 16.80 Peers 21.42   WIT NM Peers 2.41

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

WIT is trading at a discount to its peers.


Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

WIT's negative PEG ratio makes this valuation measure meaningless.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
WIT 3.36 Peers 7.94   WIT -1.82 Peers 22.17

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

WIT is trading at a significant discount to its peers.


Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, WIT is expected to significantly trail its peers on the basis of its earnings growth rate.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
WIT 3.11 Peers 5.45   WIT 2.87 Peers 22.81

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

WIT is trading at a significant discount to its industry on this measurement.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

WIT significantly trails its peers on the basis of sales growth



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