Stock Price Movement and Market Context
On 14 Jan 2026, C.E. Info Systems Ltd's share price touched Rs.1536, the lowest level recorded in the past year. This represents a notable decline from its 52-week high of Rs.2165, reflecting a depreciation of approximately 29%. The stock underperformed its sector by 1.04% on the day, closing with a day change of -1.96%. It is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
In contrast, the broader market showed resilience. The Sensex, after an initial negative opening down by 269.15 points, rebounded to close 351.61 points higher at 83,710.15, up 0.1%. The Sensex remains within 2.93% of its 52-week high of 86,159.02, supported by gains in the small-cap segment, which rose by 0.36% on the day. Despite this positive market backdrop, C.E. Info Systems Ltd has lagged behind, with a one-year return of -6.65% compared to the Sensex’s 9.43% gain.
Financial Performance Indicators
The company’s recent quarterly results reveal several areas of concern. The Profit After Tax (PAT) for the latest quarter stood at Rs.18.51 crores, marking a sharp decline of 53.0% compared to the average of the previous four quarters. Net sales also contracted by 5.9% to Rs.113.77 crores in the same period, indicating a slowdown in revenue generation.
Additionally, the Debtors Turnover Ratio for the half-year period is at a low 2.83 times, suggesting slower collection cycles and potential liquidity pressures. These financial metrics have contributed to the stock’s current valuation challenges.
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Valuation and Efficiency Metrics
The company’s Return on Equity (ROE) remains relatively high at 17.5%, reflecting efficient utilisation of shareholder funds. However, this is juxtaposed with a Price to Book Value ratio of 10.3, indicating a valuation considered very expensive relative to its book value. Despite this, the stock is trading at a discount compared to the average historical valuations of its peers in the Software Products sector.
Over the past year, while the stock has generated a negative return of -6.65%, the company’s profits have increased by 8%, resulting in a Price/Earnings to Growth (PEG) ratio of 8. This elevated PEG ratio suggests that earnings growth has not been adequately reflected in the stock price, contributing to valuation concerns.
Long-Term Performance Trends
C.E. Info Systems Ltd has demonstrated below-par performance over multiple time horizons. The stock has underperformed the BSE500 index over the last three years, one year, and three months. This persistent underperformance highlights challenges in maintaining competitive momentum within its sector and the broader market.
On a positive note, the company maintains a low average Debt to Equity ratio of zero, indicating a conservative capital structure with minimal reliance on debt financing. Majority ownership remains with promoters, which may provide stability in governance and strategic direction.
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Mojo Score and Rating Update
Reflecting these financial and market developments, C.E. Info Systems Ltd holds a Mojo Score of 28.0, categorised as a Strong Sell. This rating was upgraded from Sell to Strong Sell on 30 Dec 2025, signalling increased caution based on recent performance and valuation metrics. The company’s Market Cap Grade stands at 3, indicating a mid-tier market capitalisation within its sector.
These assessments underscore the challenges faced by the stock in regaining investor confidence and market standing amid its current valuation and earnings trajectory.
Summary of Key Data Points
To encapsulate, the stock’s 52-week low of Rs.1536 contrasts sharply with its 52-week high of Rs.2165. The latest quarterly PAT of Rs.18.51 crores declined by 53.0%, while net sales fell by 5.9%. The Debtors Turnover Ratio at 2.83 times is the lowest recorded, and the stock trades below all major moving averages. Despite a strong ROE of 17.5% and zero debt, the valuation remains elevated with a Price to Book Value of 10.3 and a PEG ratio of 8. The Mojo Grade of Strong Sell reflects these combined factors.
While the broader market and sector indices have shown resilience, C.E. Info Systems Ltd’s stock performance and financial indicators highlight a period of subdued momentum and valuation recalibration.
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