Wipro Limited

“Wipro is the weakest large-cap Indian IT compounder by every relevant metric — revenue growth, margins, ROIC, capital allocation, and competitive positioning — and faces a structurally credible threat from AI that disproportionately targets its legacy maintenance, testing, and low-complexity application revenue. The balance sheet is clean and FCF is real, but these virtues are negated by near-zero reinvestment runway, a $4B+ acquisition program that destroyed value, opaque governance under a 73% promoter stake, and a management track record that includes an abandoned revenue target and abrupt CEO succession. At 14x forward P/E, Wipro is not expensive in absolute terms, but it is not cheap relative to its deteriorating earnings trajectory — a value trap, not a value opportunity. The most probable 10-year outcome is a ~4% CAGR, insufficient to compensate for structural impairment risk.”