🟢 At a Glance
Wipro has spent 5 years stuck in fourth gear. While TCS and Infosys rev their growth engines, Wipro’s been caught idling — slashing margins, confusing investors with CEO shuffles, and burning cash on buybacks like it’s Diwali. But can this IT underdog finally debug its future?
🔎 1. TL;DR – What Just Happened?
- 🐢Sales CAGR (FY20–25): ~8% (slowest among Tier-1 IT players)
- 📉Profit CAGR: 6%, despite billions in buybacks
- 💸Free Cash Flow FY25: ₹16,943 Cr (very solid)
- 💰Dividend Yield: 2.3% with a 48% payout ratio in FY25
- 🔁CEO Turnover: Like a corporate version of Indian Idol
- ⚙️Fair Value Range: ₹285–₹325 (explained below)
- 🧠Key Question: Is the turnaround signal real or just another PowerPoint promise?
🧪 2. Financial Checkup:
Slower Than Infosys’ HR Email Replies
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 61,935 | 79,312 | 90,488 | 89,760 | 89,088 |
| Growth (%) | 1.3% | 28% | 14.1% | -0.8% | -0.7% |
| EBITDA (₹ Cr) | 14,771 | 16,684 | 16,839 | 16,752 | 18,021 |
| EBITDA Margin (%) | 24% | 21% | 19% | 19% | 20% |
| Net Profit (₹ Cr) | 10,868 | 12,243 | 11,366 | 11,112 | 13,218 |
| EPS (₹) | 9.85 | 11.15 | 10.34 | 10.57 | 12.54 |
🔍FY25 finally saw earnings momentum returnthanks to a steady OPM uptick and 20% net profit growth, but the topline has been de-growing for 2 straight years. Not sexy.
💼 3. Business Mix – IT Services with a Side of Existential Crisis
- 🔁Core Focus: Application services, infra, cloud, BPO
- 🌍Geographic Mix: US & Europe dominate (>75%)
- 🧾Client Retention: Decent, but growth muted in BFSI and Healthcare verticals
- 🔧Major Issues: Sluggish order inflow, over-dependence on consulting and
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