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Type :Public Ltd. Company
Industry :IT Services, IT Consultancy
Founded :Amalner, Maharashtra
(December1945)
Founder :Mr. Mohamed Hasham Premji
Headquarters :Bangalore, Karnataka, India
Services :IT, Business Consulting And
Outsourcing services
Employees :1,40,569 (As on march 2012)
Shareholding Pattern
[As on March 2012]
80%
7%
5%
4% 2% 1% 1%
0%
Promoters Foreign Companies General Public
Other Financial Institutions Foreign NRI
Banks Mutual Funds Directors
Total share capital :- Rs.491.7 Cr. Source: economictimes.com
Source :- www.moneycontrol.com
Particular March ’12 March ‘11 March ’10 March ‘09 March ‘08
Income In INR [CR]
Sales Turnover
31,803.40 26,401.20 23,006.30 21,612.80 17,658.10
20.46% 14.75% 6.44% 22.39% 28.34%
(Excise Duty) 120.50 100.70 84.30 105.50 165.50
Net Sales
31,682.90 26,300.50 22,922.00 21,507.30 17,492.60
20.46% 14.73% 6.57% 22.95% 27.83%
Other Income 524.90 603.30 866.70 -480.40 326.90
Stock
Adjustments
-44.90 31.60 111.00 -3.80 187.00
Total Income 32,162.90 26,935.40 23,899.70 21,023.10 18,006.50
Particular March ’12 March ‘11 March ’10 March ‘09 March ‘08
(Expenditure) In INR [CR]
Raw Materials 4,684.90 3,805.60 3,768.80 3,438.80 3,139.30
Power & Fuel Cost 233.40 199.70 141.40 154.00 0.00
Employee Cost 13,223.70 10,937.40 9,062.80 9,249.80 7,409.10
Other
Manufacturing
Expenses
3,722.90 2,780.20 2,145.30 1,687.80 299.80
Selling and Admin
Expenses
2,057.60 1,703.30 1,491.40 1,523.00 557.80
Miscellaneous
Expenses
1,495.80 1,145.00 921.80 691.40 2,558.00
Total Expenses
25,418.30 20,571.20 17,531.50 16,744.80 13,964.00
23.56% 17.33% 4.69% 19.90% 32.79%
Particular March ’12 March ‘11 March ’10 March ‘09 March ‘08
Operating Profit
6,219.70 5,760.90 5,501.50 4,758.70 3,715.60
7.96% 4.71% 15.60% 28.07% 14.16%
PBDIT
6,744.60 6,364.20 6,368.20 4,278.30 4,042.50
5.97% -0.06% 48.84% 5.83% 14.09%
(Interest)
79.90 58.60 99.80 196.80% 116.80
36.34% -41.28% -49.28% 68.49% 1522.22
PBDT
6,664.70 6,305.60 6,268.40 4,081.50 3,925.70
5.69% 0.59% 53.57% 3.96% 11.02%
(Depreciation) 739.50 600.10 579.60 533.60 456.00
Other Written Off 6.60 0.00 0.00 0.00 0.00
Profit Before Tax 5,918.60 5,705.50 5,688.80 3,547.90 3,469.70
(Extra-ordinary
items)
0.00 0.00 0.00 1.00 0.00
Particular March ’12 March ‘11 March ’10 March ‘09 March ‘08
PBT (Post Extra-
Ord Items)
5,918.60 5,705.50 5,688.80 3,547.90 3,469.70
(Tax) 1,233.50 861.80 790.80 574.10 406.40
Reported Net
Profit
4,685.10 4,843.70 4,898.00 2,973.80 3,063.30
-3.27% 1.10% 64.70% -2.92% 7.78%
31,682.90
38,858.54
8,907.22
31,254.00
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
40,000.00
45,000.00
Net Sales
WIPRO TCS HCL INFOSYS
31,803.40
38,858.79
8,907.22
31,254.00
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
40,000.00
45,000.00
Sales Turnover
WIPRO TCS HCL Infosys
25,418.30
27,472.56
6,371.15
21,191.00
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
Total Expenses
WIPRO TCS HCL INFOSYS
6,219.70
11,385.72
2,510.22
10,063.00
0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
Operating Profit
WIPRO TCS HCL INFOSYS
79.9
16.4
97.27
2
0
20
40
60
80
100
120
Interest
WIPRO TCS HCL INFOSYS
4,685.10
10,975.98
1,950.42
8,470.00
0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
Net Profit
WIPRO TCS HCL INFOSYS
4th
HCL
“C” Grade
3rd
INFOSYS
2nd
WIPRO
1st
TCS
GDP 1,847.98 Bill.USD
Balance of Trade (1,086.12) Bill.INR
Inflation 6.62%
Index of industrial production (0.60) %
Exports 1,389.82 Bill.USD
Exchange Rate ($-Rs) 54.91 Rs.
REPO 7.75%
RE-REPO 6.75%
http://www.tradingeconomics.com
India China Russia Brazil
54.91
6.23
30.73
1.98
Exchange Rate
Exchange Rate
India China Russia Brazil
1389.82
187366
40600
15966.73
Exports
Exports
India China Russia Brazil
1847.98 7298.1 1857.77 2476.65
GDP
GDP
India China Russia Brazil
6.62
2
7.1
6.15
Inflation
Inflation
11-12 Q4 18.2%
Growth rate of IT 11-12 Q4 9.4%
Value of IT industry BSE-S&P [BSE IT] 6,763.05 INR
Market Capitalization of IT
BSE-S&P [BSE IT]
(Free float)
3,04,239.45 Cr. INR
10.45% of 100%
Volume of shares traded BSE-S&P [BSE IT] 356.90 Lac
Value of shares traded BSE-S&P [BSE IT] 0.19 Cr. INR
Turnover BSE-S&P [BSE IT] 74.8001 Cr. INR
P/E Ratio BSE-S&P [BSE IT] 19.60
Source :- www.bseindia.com& www.finmin.nic.in
“A” Grade
Source :- www.money conrol.com
Liquidity Ratio Wipro
Current ratio 2.56
Quick ratio 1.26
Solvency Ratio
Debt to equity 0.21
Debt asset ratio 0.24
Interest coverage ratio 84.41
Financial Charges Coverage Ratio 88.66
Profitability Ratio
Gross profit margin ratio 30.84
Operating profit margin ratio 19.63
Net profit margin ratio 14.39
Return on capital employed 22.78
Source :- www.money conrol.com
Efficiency Ratio Wipro
Receivable turnover ratio 91
Inventory turnover ratio 48.33
Working capital turnover ratio 2.24
Valuation Ratio
Earning per share 23.19
Price earning ratio 18.33
Dividend payout ratio 36.59
Book value per share 99.04
Source :- www.money conrol.com
4th
HCL
“A” Grade
3rd
INFOSYS
2nd
TCS
1st
WIPRO
Strengths:
Strong & Global R&D facility
Large employee base & Diversified skill base
across service lines
Impressive list of clientele
MEGA Partnership – Cisco, EMC, Microsoft, Oracle
& SAP
Weaknesses:
Domestic market is huge but underdeveloped
Small player in global market
Clients not trusting the capabilities of Indian
Software Companies
High reliance on foreign market
Opportunities:
In the consultancy area
In the emerging technology areas like Blue
Tooth, WAP etc.
Huge global market
IT sector booming
Threats:
Increasing cost of human capital
Slowdown in the US economy
Competition by Indian companies in
domestic market [Emerging small IT
companies]
Exchange rate
Source :- www.indiansplash.com
Selling
Target Price
: Rs. 440
5/03/2013
BSE:419.55
NSE:419.50
• Wipro's board of directors has approved the demerger of non-
it businesses (Consumer care, lighting, infrastructure, medical
product) business will be demerged. These businesses will
come under Wipro Enterprise ltd.
• The move is positive for the company as the focus on IT
services will sharpen
• On share holding of five equity shares with face value of Rs.2
each, the share holder will get one equity share with face
value of Rs.10 in Wipro Enterprise Ltd.
• Mahindra World City, Jaipur's IT / ITES zone to be developed
by Wipro Ltd
• Wipro has signed an agreement to acquire 100% shareholding
of the L.D. Waxsons Group, a Singapore based FMCG company
Industry
Analysis
Revenue
Statement
Analysis
Ratio
Analysis
Technical
Analysis
‘A’ Grade “C” Grade ‘A’ Grade
Call :“BUY”
Selling Target
Price : Rs. 440
Website Name
http://www.moneycontrol.com
http://www.indiansplash.com
http://money.rediff.com
http://fms-syssoc.net
http://www.nse india.com
http://www.bseindia.com
http://www.tradingeconomics.com
http://www.bseindia.com
http://www.wipro.com
http://en.wikipedia.org/wiki/Wipro
http://economictimes.indiatimes.com/wipro-ltd
Equity research report wipro [2012]

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Equity research report wipro [2012]

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