Company Analysis WIPRO LTD ADR

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Company Analysis WIPRO LTD ADR

  1. 1. Company Analysis Raution Jaiswal Atkinson Graduate School of Management February 12, 2009
  2. 2. Recommendation <ul><li>Buy </li></ul><ul><li>Price: $9.95 </li></ul><ul><li>Current Price: 6.84 </li></ul><ul><li>ROI= 45.47 </li></ul><ul><li>Total Revenue at $4.9 billion for 2007-08 </li></ul><ul><li>Total Employees ~100,000 </li></ul><ul><li>Total IT business ~ $4.3 billion </li></ul><ul><li>85% of IT business is Services and 15% is Products </li></ul>
  3. 3. $5-Billion Diversified Global IT Service company <ul><li>Portfolio of services includes: </li></ul><ul><li>IT consulting </li></ul><ul><li>custom application design </li></ul><ul><li>Development </li></ul><ul><li>Re-engineering and maintenance </li></ul><ul><li>Systems integration </li></ul><ul><li>Package implementation </li></ul><ul><li>Technology infrastructure outsourcing </li></ul><ul><li>BPO services </li></ul><ul><li>Research and development services in the areas of hardware and software design </li></ul>
  4. 4. Offshore Still Small Part of Overall Spend
  5. 5. Growth in the company 5 year CAGR of Revenue 36% and Net Income of 34%
  6. 6. Revenue by Sector
  7. 7. Working their Magic <ul><li>Great brand associated with innovation. </li></ul><ul><li>Quickly entering Emerging markets. </li></ul><ul><li>Strong balance sheet. </li></ul><ul><li>It is one of the largest beneficiaries of the R&D services outsourced to India. </li></ul><ul><li>It has a wide range of products in its portfolio. </li></ul><ul><li>It has a long history of acquisitions and integration. </li></ul>
  8. 8. Shortcomings <ul><li>Higher attrition </li></ul><ul><li>Dependence on matured markets </li></ul><ul><li>Adverse currency fluctuations </li></ul>
  9. 9. Plan of Attack/Strategy <ul><li>Differentiated Service lines </li></ul><ul><li>Acquisitions </li></ul><ul><li>Leadership in Emerging Markets </li></ul><ul><li>Total Outsourcing Services </li></ul><ul><li>MEGA Partnership - Cisco, EMC, Microsoft, Oracle and SAP </li></ul><ul><li>Innovation </li></ul>
  10. 10. Risks to Consider <ul><li>High exposure to the telecom/tech sectors (36%) </li></ul><ul><li>Slowdown in US economy </li></ul><ul><li>Significant appreciation of rupee </li></ul><ul><li>Slowdown in the banking, financial services and insurance (BFSI) sector </li></ul><ul><li>H1B visa quotas </li></ul><ul><li>Acquisition-related risks </li></ul>
  11. 11. Opportunities <ul><li>Strategic alliances </li></ul><ul><li>New global development centers </li></ul><ul><li>Growing consumer care market </li></ul>
  12. 12. Wipro: “Good BUY or Good BYE” <ul><li>Quality standards </li></ul><ul><li>Strong financial performance </li></ul><ul><li>Diversified operations </li></ul><ul><li>Broad range of Research and development services </li></ul>
  13. 13. Thank You

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