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Equity research report wipro [2012]
1.
2. 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)
3. 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
24. 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
25. 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
27. 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
28. 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
30. Threats:
Increasing cost of human capital
Slowdown in the US economy
Competition by Indian companies in
domestic market [Emerging small IT
companies]
Exchange rate
32. • 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