Wipro Ltd ADR
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$3.20 | Ctfhynb | Kwpygnv |
Wipro Can’t Wipe Away Attrition Headwinds, but Moat Still Strong
Business Strategy and Outlook
Wipro is a leading global IT services provider with the typical menu of offerings, from software implementation to digital transformation consulting to servicing entire business operations teams. We think Wipro merits a narrow economic moat rating, similar to many of its peers, as we believe it benefits from switching costs and intangible assets, although we also see it benefiting from a cost advantage. While the company will likely struggle amid the COVID-19 pandemic, we think its stable moat trend will stay secure. Forays into the higher-value realm of industrial engineering will help ensure that Wipro does not miss out on substantial growth trends in the overall IT services industry.