equity research report wipro [2012]
Post on 18-Nov-2014
883 Views
Preview:
DESCRIPTION
TRANSCRIPT
Equity Research Report OfWIPRO
[2012-2013]
• Presented By : Mr. Vishal Narvekar
Company overview
Type :Public Ltd. Company Industry :IT Services, IT ConsultancyFounded :Amalner, Maharashtra
(December1945)Founder :Mr. Mohamed Hasham Premji Headquarters :Bangalore, Karnataka, India Services :IT, Business Consulting And
Outsourcing servicesEmployees :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 PublicOther Financial Institutions Foreign NRIBanks Mutual Funds Directors
Shareholding Pattern[As on March 2012]
Total share capital :- Rs.491.7 Cr. Source: economictimes.com
WIPRORevenue Statement
[2008-2011]Source :- www.moneycontrol.com
Particular March ’12 March ‘11 March ’10 March ‘09 March ‘08
Income In INR [CR]
Sales Turnover31,803.40 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 Sales31,682.90 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
Expenses3,722.90 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 Expenses25,418.30 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 Profit6,219.70 5,760.90 5,501.50 4,758.70 3,715.60
7.96% 4.71% 15.60% 28.07% 14.16%
PBDIT6,744.60 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
PBDT6,664.70 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%
Net Sales 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
31,682.90
38,858.54
8,907.22
31,254.00
WIPRO TCS HCL INFOSYS
Sales Turnover 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
31,803.40
38,858.79
8,907.22
31,254.00
WIPRO TCS HCL Infosys
Total Expenses 0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
25,418.3027,472.56
6,371.15
21,191.00
WIPRO TCS HCL INFOSYS
Operating Profit 0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
6,219.70
11,385.72
2,510.22
10,063.00
WIPRO TCS HCL INFOSYS
Interest 0
20
40
60
80
100
120
79.9
16.4
97.27
2
WIPRO TCS HCL INFOSYS
Net Profit 0.00
2,000.00
4,000.00
6,000.00
8,000.00
10,000.00
12,000.00
4,685.10
10,975.98
1,950.42
8,470.00
WIPRO TCS HCL INFOSYS
Grade in revenue statement analysis
4th HCL
“C” Grade
3rd INFOSYS
2nd WIPRO
1st TCS
GDP 1,847.98
Bill.USDBalance of Trade
(1,086.12) Bill.INR Inflation
6.62%Index of industrial production
(0.60) % Exports 1,389.82
Bill.USDExchange Rate ($-Rs)
54.91 Rs. REPO 7.75%RE-REPO 6.75%
Economic analysis
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
4060015966.73
Exports
Exports
India China Russia Brazil
1847.98 7298.1 1857.77 2476.65
GDP
GDP
India China Russia Brazil
6.62
2
7.16.15
Inflation
Inflation
Industry analysis
Contribution to Indian GDP 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
Grade in industry analysis
Ratio AnalysisSource :- 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
Grade in ratio analysis
4th HCL
“A” Grade
3rd INFOS
YS
2nd TCS1st
WIPRO
SWOT analysis of WIPRO
Strengths:Strong & Global R&D facilityLarge employee base & Diversified skill base across service linesImpressive list of clienteleMEGA Partnership – Cisco, EMC, Microsoft, Oracle & SAP
Weaknesses:Domestic market is huge but underdevelopedSmall player in global marketClients not trusting the capabilities of Indian Software Companies High reliance on foreign market
Opportunities:In the consultancy areaIn the emerging technology areas like Blue Tooth, WAP etc.Huge global marketIT sector booming
Threats:Increasing cost of human capitalSlowdown in the US economyCompetition by Indian companies in domestic market [Emerging small IT companies]Exchange rate
Source :- www.indiansplash.com
Technical analysis
Selling Target
Price : Rs. 440
5/03/2013BSE:419.55NSE: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
Future outlook
Advice to investor
Industry Analysis
Revenue Statement
Analysis
Ratio Analysis
Technical Analysis
‘A’ Grade “C” Grade ‘A’ Grade
Call :“BUY”
Selling Target Price : Rs. 440
Source Website Namehttp://www.moneycontrol.com
http://www.indiansplash.comhttp://money.rediff.comhttp://fms-syssoc.nethttp://www.nse india.com
http://www.bseindia.comhttp://www.tradingeconomics.comhttp://www.bseindia.comhttp://www.wipro.comhttp://en.wikipedia.org/wiki/Wiprohttp://economictimes.indiatimes.com/wipro-ltd
THANK YOU
top related