A few years ago, India’s IT industry mostly did outsourcing work for global companies. However, now, it’s a top choice for MNCs because of its highly skilled workforce. Indian IT companies are doing really well and are competing strongly with global ones.
Infosys and Wipro are among the leading Indian IT firms in the country. This article will compare both these company stocks to determine which stands better for long-term investing.
Infosys
Infosys was founded on 2 July 1981 by N. R. Narayana Murthy. It stands as a prominent player in the IT services industry. If you’re thinking about investing, you might want to know that Infosys share price is roughly around Rs. 1,560+ as of December. They’ve been around for a while, and their strength lies in technology services. Infosys helps other companies with software, consulting, and more.
As you consider long-term investments, Infosys’s track record and commitment to excellence may position it favorably in your portfolio, potentially yielding fruitful returns over time.
Wipro
Wipro was established on 29 December 1945 by Mohamed Premji. It is a big company, and its shares are like pieces of the company that you can buy. Right now, one Wipro share price is around Rs. 440+ as of December 2023.
Wipro serves clients globally in many industries with software development, IT consulting, business process outsourcing, and more. The company is known for innovation, sustainability, and corporate social responsibility. With its strong market presence and continual innovation, Wipro has great potential to benefit from the changing tech landscape. This can make it appealing for long-term IT investors.
Which Stands Better for Long-Term Investment?
If you invest over a span of five years in Infosys, you could potentially realize a substantial profit of approximately +120%. Similarly, if you invest for five years in Wipro, you could potentially realize a substantial profit of approximately +70%.
In terms of Shareholder payout through buybacks and dividends, Both Infosys and Wipro consistently reward their shareholders through dividends and share buybacks. They do this by paying dividends or purchasing back equity at a higher price.
Infosys has a 2.26% five-year average dividend yield, whereas Wipro has 0.24%.
So, Infosys is better in both ratios, which means it gives you, the shareholder, more returns compared to Wipro.
Conclusion
In the battle of Infosys vs. Wipro for long-term investing, Infosys emerges as the stronger contender. With a proven track record, Revenue growth, and solid profitability, Infosys shows greater potential for sustained growth.
If you’re considering trading in these companies, consider using Dhan for a seamless and efficient trading experience with their investing app, adding an additional advantage. Invest wisely and secure your financial future with Infosys as your choice for long-term investments.