Wipro Fundamental And Technical Analysis

1. Company Overview:

Wipro Limited is a leading global IT, consulting, and business process services company with operations in over 50 countries.
It has strong verticals in BFSI (Banking, Financial Services, and Insurance), healthcare, consumer goods, and energy sectors.

2. Key Financial Metrics (as of Jan 2025):

Market Cap: ₹2.95 trillion
Revenue Growth: Moderate annual growth of 8%-10%.
Net Profit Margin (TTM): ~13.5%, indicating efficient cost management.
P/E Ratio: ~23.8 – slightly higher than peers like Infosys (21.5), suggesting it may be priced at a premium.
Dividend Yield: ~1.5%, attractive for income-seeking investors.

3. Strengths:

Diversified revenue base across geographies and industries.
Focus on high-growth areas like cloud services, cybersecurity, and AI/ML.
Solid free cash flow generation (~₹10,000 crore annually), supporting dividends and buybacks.

4. Weaknesses:

Reliance on the US (~55% revenue) makes it vulnerable to macroeconomic changes in that market.
Slower revenue growth compared to competitors like TCS and Infosys.
High attrition rates (~20%) can affect project delivery and margins.

5. Recent Developments:

Quarterly Earnings (Q3 FY25): Revenue growth of 4% QoQ and PAT growth of 6.5%.
Recently announced partnerships in AI solutions and cloud migrations.
Strong order book (~$2.7 billion) for FY25, reflecting sustained demand for IT services.

6. Valuation:

Fair valuation with a forward P/E ratio of 22-24, compared to the industry average.
Long-term investors should focus on its dividend-paying history and strong cash reserves.

1. Current Price Levels (as of Jan 20, 2025):

2. Key Indicators:

Moving Averages:
- 50-day SMA: ₹285 (current price above this indicates a short-term uptrend).
- 200-day SMA: ₹268 (price above 200-day SMA suggests long-term bullish momentum).
RSI (Relative Strength Index): 64 – indicates the stock is nearing the overbought zone (70+ is overbought).
MACD (Moving Average Convergence Divergence): Positive crossover, signaling bullish momentum.
Bollinger Bands: The price is near the upper band, indicating strong upward momentum but potential for a pullback.

3. Support and Resistance Levels:

Immediate Support: ₹290 (50-day SMA level).
Critical Support: ₹270 (200-day SMA and strong demand zone).
Resistance: ₹310 (recent high); breaking this could lead to ₹320 (52-week high).

4. Volume Analysis:

Rising volumes in the past week suggest accumulation by institutional investors.
Average trading volume is healthy, with significant spikes during upward price movements.

5. Chart Patterns:

Ascending Triangle Formation: Indicates a continuation of the uptrend if ₹310 resistance is breached.
Golden Crossover (50-day SMA crossing above 200-day SMA): A bullish signal observed last month.

6. Trend Analysis:

Wipro is in a strong uptrend in the short term, supported by bullish price action and momentum indicators.
Consolidation around ₹290-310 could happen before any breakout.

Fundamental Outlook: Wipro remains a solid choice for long-term investors, given its strong cash flow, steady revenue growth, and robust dividend payouts. However, slower growth compared to peers is a concern.
Technical Outlook: The stock is bullish in both short and long-term trends. A break above ₹310 could signal further upside to ₹320 or ₹350. However, if it falls below ₹290, a deeper correction toward ₹270 could occur.

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