Wipro in its board meeting has considered as well as approved an interim dividend of Rs. 5 per share of par value Rs. 2 each for the financial year 2021-22. Ex-date or the date by which the investor should buy into the scrip to be eligible for the prescribed dividend or the date when the stock adjusts in price in respect of the declared dividend in the case of Wipro is April 5, 2022. For the above-specified dividend, the board has fixed Wednesday, April 6, 2022, as the “record date” for the purpose of ascertaining the eligibility of shareholders for payment of the interim dividend. Further, the payment of the interim dividends will be made on or before April 24, 2022.
Importantly, the interim dividend of Rs. 5 declared for Fy22 is the highest in the last 5 years. Earlier to this, the IT major declared Rs. 5 interim dividends for the Fy 2015-16 which was announced on January 6, 2016. Also, for this Fy 2022 itself, the company also announced 50 per cent or Rs. 1 interim dividend for which the stock turned ex-dividend on January 21, 2022.
Wipro is India’s fourth-largest IT service company by revenue after Tata Consultancy Services Limited, Infosys Limited, and HCL Technologies Limited. Wipro has a strong globally diversified presence and provides comprehensive IT services to an established customer base.
Fitch Ratings has affirmed India-based Wipro Limited’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at ‘A-‘. The Outlook is Stable. We have also affirmed Wipro’s senior unsecured rating of ‘A-‘ and the ‘A-‘ rating on the USD750 million senior notes due 2026 issued by Wipro IT Services, LLC and guaranteed by Wipro.
“The ratings reflect Wipro’s strong market position in the global IT service industry, improving business performance, robust industry growth, stable profitability and cash generation, and a conservative capital structure. We expect Wipro to maintain its net cash position over the medium term,” Fitch note mentioned.
Wipro: What do Analysts Say About the Stock?
Venil Shah, Equity Analyst – PMS at Prabhudas Lilladher, said: “Wipro is on a strong turnaround footing with important changes in the organization structure, leadership profile, and bench strength. Priority on growth is reflected, especially in the robust client addition in $50 mn/$100 mn buckets and large acquisition of CAPCO. Valuations offer a nice margin of safety considering the growth visibility. They announced an interim dividend of Rs 5/share signals a return of dividends as a preferred mechanism of distributing wealth to shareholders than buybacks. We remain positive on the stock considering the strong demand outlook, improving win rates, and early signs of moderating talent attrition.”
Divam Sharma, Founder at Green Portfolio, said: “Long-term investors can consider buying Wipro. The stock has seen good correction over the last 3 months and looks comfortable on valuations at current levels.”
Santosh Meena, Head of Research, Swastika Investmart Ltd., said: “The outlook for the industry and Wipro is bullish however investors should not buy its share only based on dividends because historically, IT stocks tend to underperform in April whereas technically, Wipro is having strong resistance near the 620 level which is a cluster of its 20 and 100-DMA, therefore, we can expect some pressure from here. On the downside, 540 is a strong base where investors can look for buying opportunities.”
At 14:48 hours, Wipro was trading at Rs 602.50, up Rs 2.30 or 0.38 per cent on NSE.
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