On 18 Nov 2025, the company’s score grade was recorded as 'Sell' and subsequently adjusted to 'Strong Sell' the following day. This change reflects a nuanced shift in the assessment of Lee & Nee Software’s overall investment profile, driven primarily by technical trend alterations and financial performance metrics. The company’s market capitalisation grade remains at 4, indicating a mid-tier valuation within its sector.
Examining the technical parameters, Lee & Nee Software’s trend has transitioned from mildly bullish to sideways. Weekly and monthly technical indicators present a mixed picture: the Moving Average Convergence Divergence (MACD) shows a mildly bullish stance on a weekly basis but mildly bearish on a monthly scale. The Relative Strength Index (RSI) offers no clear signal in either timeframe, while Bollinger Bands indicate bearish momentum weekly and monthly. The Know Sure Thing (KST) oscillator is bullish weekly but bearish monthly, and Dow Theory signals are mildly bearish weekly with mildly bullish monthly readings. Daily moving averages remain mildly bullish, suggesting short-term support despite broader sideways movement. This complex technical landscape has been a significant factor in the adjustment of the company’s evaluation.
Momentum just kicked in! This Small Cap from the Auto - Trucks sector entered our list with explosive short-term signals. Catch the wave while it's still building!
- Fresh momentum detected
- Explosive short-term signals
- Early wave positioning
From a valuation perspective, Lee & Nee Software’s current price stands at ₹9.74, with a day’s high of ₹9.94 and a low of ₹9.23. The stock’s 52-week range spans from ₹7.79 to ₹15.87, indicating significant price volatility over the past year. Despite this, the stock’s returns have lagged behind benchmark indices. Year-to-date, the stock has recorded a return of -30.48%, contrasting with the Sensex’s 8.36% gain. Over the last one year, the stock’s return is -33.74%, while the Sensex has appreciated by 9.48%. Even over a three-year horizon, Lee & Nee Software’s 6.22% return trails the Sensex’s 37.31%. However, over longer periods such as five and ten years, the stock has outperformed the Sensex with returns of 540.79% and 283.46% respectively, compared to the Sensex’s 91.65% and 232.28%. This disparity between short-term underperformance and long-term outperformance contributes to the complexity of the valuation assessment.
Financial trends for Lee & Nee Software reveal a flat performance in the second quarter of fiscal year 2025-26. The company reported operating losses, which underpin a weak long-term fundamental strength. Operating profit growth over the past five years has been modest, at an annual rate of 2.29%. The company’s ability to service debt is constrained, with an average EBIT to interest ratio of -0.93, signalling challenges in covering interest expenses from operating earnings. Additionally, cash and cash equivalents at the half-year mark were at a low ₹1.40 crore, and quarterly earnings per share (EPS) stood at ₹0.01, the lowest recorded. Negative EBITDA further accentuates the risk profile of the stock.
Despite the negative returns over the last year, the company’s profits have shown a 26% rise during the same period. The Price/Earnings to Growth (PEG) ratio is 0.4, which may indicate undervaluation relative to earnings growth. However, the stock’s risk profile remains elevated due to its financial and operational challenges. The stock has underperformed the BSE500 index over the last one year, three years, and three months, reinforcing concerns about its near-term prospects.
Holding Lee & Nee Software (Exports) from Computers - Software & Consulting? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- Peer comparison ready
- Superior options identified
- Cross market-cap analysis
Quality-wise, the company’s fundamentals reflect a weak long-term strength. Operating losses and a low EBIT to interest coverage ratio highlight operational and financial stress. The flat quarterly results and minimal EPS underscore challenges in generating shareholder value in the near term. The company’s promoter group remains the majority shareholder, which may influence strategic decisions and governance.
Technically, the shift from a mildly bullish to a sideways trend suggests a period of consolidation or uncertainty in price movement. Mixed signals from key indicators such as MACD, Bollinger Bands, and KST oscillators across weekly and monthly timeframes point to a lack of clear directional momentum. This technical ambiguity has been a principal driver behind the revision in the company’s evaluation.
In summary, Lee & Nee Software (Exports) presents a complex investment profile characterised by subdued financial performance, challenging debt servicing capacity, and mixed technical signals. While the stock has demonstrated strong long-term returns over five and ten years, recent periods have seen underperformance relative to major indices and peers. The adjustment in evaluation reflects these multifaceted factors, signalling a cautious stance for investors analysing this stock within the Computers - Software & Consulting sector.
Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
