TCS vs WIPRO
Side-by-side comparison of Tata Consultancy Services Ltd. and Wipro Ltd.. Descriptive only — not investment advice.
Tata Consultancy Services Ltd.
IT
Quality Score: 54/100
Wipro Ltd.
IT
Quality Score: 52/100
At a glance
| Metric | TCS | WIPRO |
|---|---|---|
| Quality Score | 54/100 | 52/100 |
| P/E (trailing) | 17.6 | 15.7 |
| Forward P/E | 14.5 | 13.8 |
| ROE | +48.4% | +15.5% |
| Profit margin | +18.4% | +14.3% |
| Debt-to-equity | 10.39 | 22.85 |
| Dividend yield | +5.18% | +8.59% |
| 1Y price return | -28.4% | -14.2% |
| From 52w high | -31.8% | -25.7% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.12 | 3.18 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
TCS trades at ₹2,394.40, down 28.41% over 12 months and 31.77% below its 52-week high, with the price sitting 17.6% below the 200-DMA at the time of analysis. Against this technical backdrop, the company reports an ROE of 48.4% — highest among its 6 tracked IT peers — and a 5.18% dividend yield, though the dividend has been cut for a second consecutive year. An active governance investigation at the Nashik facility adds a reputational risk dimension not visible in the trailing financial metrics.
Wipro (₹197.91) trades below both its 50-DMA (₹198.91) and 200-DMA (₹231.32), with a 25.66% drawdown from its 52-week high and a 14.17% decline over 12 months. PE of 15.74 is the second-lowest in the IT peer group, while ROE of 15.49% is the lowest among the six large-cap IT names tracked. The company approved a ₹15,000 crore buyback alongside Q4 results that missed revenue estimates and guided for a weak Q1 FY27.
Pros
- ✓ROE of 48.4% ranks 1st among 6 tracked IT sector peers (HCLTECH 23.36%, INFY 31.44%, TECHM 16.61%, WIPRO 15.49%, LTM 21.29%), and has been above 15% in 4 of the available historical years.
- ✓FCF has been positive in 4 of the available recorded years, with a consistency score of 59, indicating above-average earnings-to-cash conversion relative to the historical record.
- ✓Trailing dividend yield of 5.18% is notable for a large-cap IT name; forward PE of 14.47 compresses the valuation multiple further when projected earnings are used.
- ✓5-year earnings CAGR of 12.2% and revenue CAGR of 9.6% reflect sustained top- and bottom-line growth over a multi-year horizon despite current near-term headwinds.
- ✓PE of 15.74 is the second-lowest among the six tracked IT peers (TECHM: 26.99, LTM: 25.77, TCS: 17.63, HCLTECH: 19.54), reflecting a meaningful valuation discount to most sector names.
- ✓Free cash flow has been positive in 4 of the tracked years, and the debt trend is described as flat, indicating the balance sheet has not deteriorated despite muted earnings growth.
- ✓Dividend yield of 8.59% is notable for a large-cap IT company; the ₹15,000 crore buyback announced in April 2026 is the largest in the company's history.
- ✓Revenue has grown at a 5-year CAGR of 7.7%, indicating the top line has expanded even as earnings growth lagged.
Cons
- ✗Price is 31.77% below the 52-week high and 17.6% below the 200-DMA (₹2,901.17), with losses of 28.41% over 12 months and 20.16% over 3 months — among the steepest drawdowns in the measured IT peer group.
- ✗Active governance risk: Nashik facility allegations led to an internal probe ordered by the Chairman and 7 SIT arrests as of April 2026, representing an ongoing legal and reputational exposure.
- ✗Dividend has been reduced for two consecutive years, with cash being redirected to AI infrastructure investment; payouts to parent Tata Sons have also declined, signalling a shift in capital allocation priorities.
- ✗Debt-to-equity of 10.39 is on a rising trend; while IT firms are not capital-intensive in the traditional sense, this trajectory alongside declining dividend capacity constrains financial flexibility.
- ✗ROE of 15.49% ranks last among six tracked IT peers and has been above the 15% threshold for only 2 of the available historical years, reflecting weak and inconsistent return on equity.
- ✗5-year earnings growth of -1.6% shows that bottom-line performance has not kept pace with revenue expansion, with profit declining on a compounded basis over the period.
- ✗Price has been below the 200-DMA for an extended period; the 25.66% drawdown from the 52-week high and 15.18% decline over 3 months reflect sustained and accelerating downward price movement.
- ✗Quality score of 46 ranks 4th of 6 IT peers, and the persistence consistency score of 39 is the weakest in the group, signalling structural underperformance relative to sector leaders.
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