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Company name Wipro Limited (ADR)
Stock ticker WIT
Live stock price [stckqut]WIT[/stckqut]
P/E compared to competitors Fair

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Fair
EBIT growth Good

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $13.54
Target stock price (averages with growth) $19.17
Target stock price (averages with no growth) $17.09
Target stock price (manual assumptions) $13.34

The following company description is from Google Finance: http://www.google.com/finance?q=wit

Wipro Limited (Wipro) is a global information technology (IT), services company. Wipro provides a range of IT services, software solutions and research and development services in the areas of hardware and software design to companies worldwide. It uses its development centers located in India and worldwide, quality processes and global resource pool to provide IT solutions and deliver time-to-market and time-to-development advantages to its clients. It also provides business process outsourcing (BPO) services. The Company operate in three segments: IT Services business segment, IT Products business segment and Consumer Care and Lighting business segment. On June 10, 2011, it acquired the global oil and gas information technology practice of the Commercial Business Services Business Unit of Science Applications International Corporation Inc. along with 100% interest in SAIC Europe Limited and SAIC India Private Limited. In June 2013, the Company acquired a minority stake in Axeda Corp.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Wipro Limited (ADR) as long as the price is correct. Most of the fundamentals of Wipro Limited (ADR) are good, in fact the company ranks as a Good company, but there are some concerns with the price of the stock and if it can truly appreciate enough to get a good return on an investment. For this reason, I am not going to add it to my Watch List.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Wipro Limited (ADR) calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $11.4
  • Growth: 0.13
  • Current EPS (TTM): $0.53
  • P/E: 22
  • Future EPS Calc: $0.97
  • Future Stock Price Calc: $21.48
  • Target stock price: $13.33

I hope that this makes you a better investor. [/s2If]