How Does the Fundamental Picture Look for Wipro Limited (WIT)?

Wipro Limited (NYSE:WIT) has recently been identified as an interesting stock but more in-depth monitoring is needed for a trade decision. Now trading with a market value of 17.96B, the company has a mix of catalysts and obstacles that spring from the nature of its operations. As the day-to-day narrative ebbs and flows for this company, it is more important than ever to step back and get a bird’s eye view of the fundamental reality under the surface of this story.

Wipro Limited (NYSE:WIT) Fundamentals That Matter

It’s generally a good idea to start with the most fundamental piece of the picture: the balance sheet. The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For WIT, the company currently has 44.93 billion of cash on the books, which is offset by 92.99 billion in current liabilities. The trend over time is important to note. In this case, the company’s debt has been growing. The company also has 760.64 billion in total assets, balanced by 275.29 billion in total liabilities, which should give you a sense of the viability of the company under any number of imagined business contexts.

Wipro Limited (WIT) saw 2.73 billion in free cash flow last quarter, representing a quarterly net change in cash of -8.41 billion. Perhaps most importantly where cash movements are concerned, the company saw about 9.2 billion in net operating cash flow.

Wipro Limited (NYSE:WIT) Revenue Growth Potential

As far as key trends that demonstrate something of the future investment potential of this stock, we need to take a closer look at the top line, first and foremost. Last quarter, the company saw 137.69 billion in total revenues. That represents a quarterly year/year change in revenues of -0.02 in sequential terms, the WIT saw sales decline by 0.01.

But what about the bottom line? After all, that’s what really matters in the end. Wipro Limited (WIT) is intriguing when broken down to its core data. The cost of selling goods last quarter was 97.79 billion, yielding a gross basic income of 39.89 billion. For shareholders, given the total diluted outstanding shares of 4.51 billion, this means overall earnings per share of 4.00. Note, this compares with a consensus analyst forecast of 0.07 in earnings per share for its next fiscal quarterly report.

Is Wipro Limited (NYSE:WIT) Valuation Attractive

If we consider a median price to earnings ratio on the stock, that corresponds with a stock price of 16.00. However, one should always remember: the trends are more important than the forecasts. This continues to be an interesting story, and we look forward to updating it again soon on Wipro Limited.

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