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: 59/100
Wipro Ltd.
IT
Quality Score: 52/100
At a glance
| Metric | TCS | WIPRO |
|---|---|---|
| Quality Score | 59/100 | 52/100 |
| P/E (trailing) | 15.7 | 15.8 |
| Forward P/E | 12.9 | 13.8 |
| ROE | +48.4% | +15.4% |
| Profit margin | +18.4% | +14.3% |
| Debt-to-equity | 10.39 | 22.85 |
| Dividend yield | +5.84% | +8.57% |
| 1Y price return | -37.2% | -15.7% |
| From 52w high | -37.6% | -25.5% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.05 | 3.18 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
TCS (IT sector) trades at ₹2,125 as of 2026-06-22, 37.57% below its 52-week high, below both the 50-DMA (₹2,326.99) and 200-DMA (₹2,751.85). Trailing PE is 15.71 with a forward PE of 12.89, while ROE of 48.4% ranks first among 6 tracked IT peers. A confirmed $70 million litigation charge following the US Supreme Court ruling in June 2026 adds a near-term financial headwind.
Wipro (WIPRO) trades at ₹198.37, down 15.73% over 12 months and 25.49% below its 52-week high, with the price sitting below both the 50-DMA (₹199.63) and 200-DMA (₹226.97). At a trailing PE of 15.79 and forward PE of 13.79, the valuation is broadly in line with INFY (15.58) and TCS (16.16), but ROE of 15.44% lags all five tracked peers and 5-year earnings CAGR is -1.6%. The analyst community of 40 shows a mean rating of 3.18 on a 1–5 scale (lower = more constructive).
Pros
- ✓ROE of 48.4% is the highest among six tracked IT peers (INFY: 31.44%, HCLTECH: 23.36%, LTM: 21.29%, TECHM: 16.61%, WIPRO: 15.44%), reflecting durable capital efficiency.
- ✓5-year earnings CAGR of 12.2% and revenue CAGR of 9.6% demonstrate consistent compounding over the persistence window of 4 tracked years.
- ✓Moody's upgraded TCS to A2 (May 2026) and a multimillion-euro AI-powered IT modernisation deal was signed with Canada Life (June 2026), indicating ongoing deal flow in the enterprise segment.
- ✓Dividend yield of 5.84% at current price levels represents one of the higher yields in the large-cap IT peer group, with FCF positive in 4 of 4 tracked years supporting distributions.
- ✓FCF was positive in 4 of the 5 tracked fiscal years, indicating the business generates cash despite earnings-growth headwinds.
- ✓Trailing PE of 15.79 and forward PE of 13.79 are below Tech Mahindra (27.40) and LTM (23.81), placing WIPRO among the lower-PE names in the large-cap IT peer set (ranked 2nd of 6 on PE).
- ✓Revenue has grown at a 5-year CAGR of 7.7%, showing top-line expansion even as margin conversion has been uneven.
- ✓The Aggne Global stake increase (to 80% for $28.5 million, announced June 2026) adds an inorganic growth initiative in the US market.
Cons
- ✗Price has declined 37.17% over 12 months and remains 22.8% below the 200-DMA (₹2,751.85) and 8.7% below the 50-DMA (₹2,326.99), reflecting a sustained multi-month downtrend.
- ✗US Supreme Court rejected TCS's appeal, confirming a $70 million charge (Reuters, June 2026) — a material one-time hit to earnings in the near term.
- ✗Debt-to-equity of 10.39 is elevated relative to the capital-light nature of IT services, and the persistence data flags a rising debt trend — an atypical structural development for the segment.
- ✗Consistency score of 59/100 and quality score of 62 are below peers INFY (quality 65) and LTM (quality 65), indicating mid-tier execution consistency despite leading ROE.
- ✗5-year earnings CAGR of -1.6% alongside 7.7% revenue growth points to margin dilution or cost pressures absorbing top-line gains over the period.
- ✗ROE of 15.44% ranks last among the 6 tracked large-cap IT peers; TCS (48.4%), INFY (31.44%), HCLTECH (23.36%), LTM (21.29%), and TECHM (16.61%) all record higher capital efficiency.
- ✗Price is down 15.73% over 12 months and 25.49% below the 52-week high, with the stock trading below both the 50-DMA and 200-DMA as of the run date — two consecutive moving-average failures.
- ✗Fundamental consistency score of 30/100 and ROE exceeding 15% in only 1 of the tracked years reflect limited historical earnings durability.
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