The Great Indian Tech Blog

Stock Watch : Go Long on Wipro Ltd. Ex-Bonus and Ex-Dividend 15th June

Author: Gadget Techie, Category: India, Stock Watch

Wipro Logo

Since I am totally into share trading these days, I decided to blog about a few stocks which I think are interesting from the market point of view. I am the tertiary author of this blog but we all blog under the same pseudo name. Since I am an amateur, you are requested not to take my calls seriously, but only try and understand my approach and tell me if you think I lack somewhere.

The first stock idea I present is WIPRO :

Last close 629.30 on NSE

According to NSE India, Wipro is ex-bonus and ex-dividend on 15-June-2010. Wipro has taken a good beating from the market. From 700+ levels in March, the stock has come down to 629 despite showing good numbers in Q4 results.

The blame is to be put on the Euro economy and subsequent BP oil spill which is a client of Wipro. In anycase, I believe that the Wipro stock is a strong stock particularly since you will be able to expand your holding after 15th June with the bonus shares. Now only that you get a 6 rupees dividend and a good performer.

The share is currently trading at a P/E of 18.89 with an EPS of 33.36 v/s an industry average P/E of 20.31 (which means its discounted). Its also increased the dividend by 100% vis a vis last year to 300% i.e. Rs. 6 on a face value of Rs. 2 and the preceding falls have made it even more attractive. The bonus ratio is 2:3 which means 2 shares shall be awarded for each 3 shares owned by anyone.

The stock might have a small downturn in the short term, but in the long term , its going to be a good stock to have. Its certainly a wealth builder in my opinion.

Market Cap 92534.01 EPS (TTM) 33.36  P/E 18.89 P/C 16.89
Book Value 118.59  Price/Book 5.31 Div(%) 200.00% Div Yield(%) 0.63
Market Lot 1.00 Face Value 2.00 Industry P/E 20.31    

Disclaimer :

Please follow any advice at your own risk, we will not be responsible for actions taken on reading the items here. Please use your own research before making investments. Market investments are subject to very high risks.

I and/or my family have certain holdings in WIPRO Ltd as of date of publication of this article.



One Response

  1. Anubhav

    15|Jun|2010

    Thanks for the tip, I had seen it and invested and my invested has grown 8 percent in 5 days all thanks to this tip of yours about WIPRO.


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