WIPRO LTD ascents 0.08 percent despite modest market dip

In this story I am going to address all WIPRO LTD shareholders. I will look into why despite regular market tumult, the longer-term fundamental drivers of the firm are still sound. In spite of latest unsteady performance, the Stock's fundamental drivers remain sound and the ongoing tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders. Macroaxis considers WIPRO LTD to be unstable. WIPRO LTD ADR shows Sharpe Ratio of -0.1286 which attests that the company had -0.1286% of return per unit of standard deviation over the last 1 month. Macroaxis philosophy towards determining risk of any stock is to look at both systematic and un-systematic factors of the business, including all available market data and technical indicators. WIPRO LTD ADR exposes twenty-one different technical indicators which can help you to evaluate volatility that cannot be diversified away. Please be advised to check out WIPRO LTD ADR Mean Deviation of 1.27 and Risk Adjusted Performance of (0.10) to validate risk estimate we provide.
Published over a year ago
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Reviewed by Michael Smolkin

WIPRO LTD has accumulated 2.02B in total debt with debt to equity ratio (D/E) of 17.4 indicating the entity may have difficulties to generate enough cash to satisfy its financial obligations. This firm has Current Ratio of 2.62 suggesting that it is liquid and has the ability to pay its financial obligations in time and when they become due. The firm dividends can provide a clue to current valuation of the stock. The entity is not expected to issue dividends this year as it trying to preserve or re-invest any of the funds available for distribution to stakeholders. Let me take a closer look at WIPRO LTD Gross Profit. According to company disclosure WIPRO LTD ADR 1 IR 2 reported 174.29B of gross profit. This is 77.4% higher than that of the Technology sector, and 5544.15% higher than that of Information Technology Services industry, The Gross Profit for all stocks is 536.62% lower than WIPRO LTD ADR.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Wipro income statement, its balance sheet, and the statement of cash flows. Potential Wipro investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Wipro investors may use each financial statement separately, they are all related. The changes in Wipro's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Wipro's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Wipro fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Wipro performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Wipro shares is the value that is considered the true value of the share. If the intrinsic value of Wipro is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Wipro. Please read more on our fundamental analysis page.

How important is Wipro's Liquidity

Wipro financial leverage refers to using borrowed capital as a funding source to finance Wipro Limited ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Wipro financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Wipro's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Wipro's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Wipro's total debt and its cash.

A Deeper look at Wipro

The company has beta of -0.17. As returns on market increase, returns on owning WIPRO LTD are expected to decrease at a much smaller rate. During bear market, WIPRO LTD is likely to outperform the market. WIPRO LTD ADR price decrease over the last few months may raise some interest from investors as it closed today at a share price of 3.6645 on 267.000 in trading volume. The company directors and management were not very successful in positioning the organization components to exploit market volatility in July. However, diversifying your holdings with WIPRO LTD ADR or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.431. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. WIPRO LTD is trading at 3.71 which is 0.08 percent up. Today lowest is 3.6645.
In closing, our research shows that WIPRO LTD is unstable with below average odds of distress in the next two years. Our overall Buy/Hold/Sell recommendation on the firm is Cautious Hold.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Wipro Limited. Please refer to our Terms of Use for any information regarding our disclosure principles.

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