Wipro-Phoenix Group Partnership: $650 Million Deal to Drive ReAssure UK’s Digital Growth
Business and Industry Overview:
Wipro Ltd. is a global information technology, consulting, and business process services (BPS) company. It is the 4th largest Indian player in the global IT services industry behind TCS, Infosys, and HCL Technologies. It is based in Bengaluru. It provides IT services, consulting, and business process solutions. The company operates in 167 countries and offers services in cloud computing, cybersecurity, digital transformation, artificial intelligence (AI), robotics, and data analytics. Wipro started in 1945 as Western India Vegetable Products Limited, a cooking oil company. In the 1980s, it expanded into technology and software services. By the 1990s, it had become one of India’s top IT service providers. During the dot-com boom, Wipro was India’s largest company by market value. In 2004, its annual revenue exceeded $1 billion.
Over the years, Wipro expanded through many acquisitions. It bought Appirio in 2016, Capco in 2021, and Rizing in 2022. These helped Wipro grow in cloud services, consulting, and enterprise software. Wipro serves industries like finance, healthcare, manufacturing, retail, and telecom. It offers software development, business process management, consulting, engineering, and cloud services. The company focuses on innovation and digital transformation. Wipro is expanding globally while staying connected to its Indian roots.
Latest Stock News:
Wipro Limited’s stock went up and down in the last few days. On April 7, 2025, the share price fell by 1.38% and closed at ₹242.85. But it still did better than the BSE Sensex, which fell by 2.95% that day. On April 8, Wipro’s share price went up by 1.81% and closed at ₹247.25. It did better than the market again, as the Sensex went up by 1.49%. On April 9, Wipro’s share price fell a lot by 4.29% and closed at ₹236.65. This time, it did worse than the market, as the Sensex only fell by 0.51%. The whole IT sector is also facing problems. There are worries about a slowdown or recession in the US. The US is an important market for Indian IT companies. There is also worry about US tariffs and how they will affect the supply chain. Because of this, companies may not spend much on technology right now. They may wait before spending on extra or new tech projects. Many IT company shares are falling. Wipro, Mphasis, Coforge, and Tech Mahindra are down between 3% and 5%. Other big companies like TCS, Infosys, HCL Tech, LTIMindtree, and Persistent Systems are down 1% to 2%. On April 9 at 9:40 AM, the Nifty IT index and BSE IT index were down by 2.5%. These were the biggest losers among all sector indices. At the same time, the Nifty 50 and Sensex were down by only 0.65%.
In the last 5 days, the BSE IT index fell nearly 10%. In the year 2025 so far, it has fallen 26%, while the Sensex fell only 5.6%. Wipro will announce its financial results for the quarter ending March 31, 2025, on April 16, 2025, after market hours. These results are important and may affect Wipro’s stock price.
Potentials:
Wipro is investing $200 million in its venture arm, Wipro Ventures. This money will help support early- to mid-stage startups. Since 2015, Wipro Ventures has raised money four times. With this new investment, its total funding reaches $500 million. The funds will go to startups that match Wipro’s business goals. Some money will also support startups Wipro has already invested in. Wipro Ventures invests in IT startups and helps them grow. It has made 37 investments in 10 years, with 12 successful exits. It has invested in companies in India, the US, and Israel, mainly in enterprise technology and cybersecurity. Each year, Wipro Ventures makes 3 to 5 investments, usually between $1 million and $10 million per startup. Some of these startups have helped Wipro improve its own operations. For example, Avaamo, a conversational AI company, improved Wipro’s employee experience. Wipro Ventures is also investing in AI (artificial intelligence), especially generative AI (GenAI). It focuses on middleware and small language models (SLMs). However, this AI investment is separate from Wipro’s larger $1 billion AI plan. Some startups Wipro has backed have done very well. One was acquired by Palo Alto Networks in 2019 and became part of its security platform. Another, Tricentis, has grown into a big company in test automation. Wipro has worked with Tricentis for many years and introduced its solutions to many clients. Wipro Ventures continues to support new startups and create partnerships in the IT industry.
Analyst Insights:
- Market capitalisation: ₹ 2,47,823 Cr.
- Current Price: ₹ 237
- 52-Week High/Low: ₹ 325 / 208
- P/E Ratio: 20.0
- Dividend Yield: 2.54%
- Return on Capital Employed (ROCE): 16.9%
- Return on Equity (ROE): 14.3%
Wipro Ltd’s net profit grew by 24% in Q3 FY24 compared to last year. This shows good cost control and better use of money. Its operating margin is stable at around 19-20%, which is a good sign. But its revenue growth is very slow. It grew by just 0.5% from last quarter and stayed almost the same compared to last year. This shows weak demand and fewer new deals. At the same time, Wipro’s peers like Infosys and HCL Tech did better. Infosys revenue grew by 4.9% and HCL Tech by 5.9% from last year.
Wipro’s ROCE is 16.9% and ROE is 14.3%, which are lower than other companies. TCS has ROCE of 64.7% and ROE of 50.2%, Infosys has ROCE of 40.2% and ROE of 35.5%, and HCL Tech has ROCE of 33.2% and ROE of 26.3%. This means Wipro is not using its money as well as its peers. Also, its yearly revenue fell from ₹90,488 Cr in FY23 to ₹88,792 Cr in FY24. This is a sign of weak business performance. Wipro is giving returns to shareholders through dividends and buybacks, but the slow revenue, less growth, and weak numbers compared to other companies make it less strong for long-term investment.
