Stock Price Movement and Market Context
On 27 Jan 2026, CG-VAK Software & Exports Ltd's share price touched an intraday low of Rs.198, representing a 5.47% drop from its previous close. The stock also recorded an intraday high of Rs.213.75, but ultimately closed lower, underperforming its sector by 3.26%. This marks the second consecutive day of decline, with the stock losing 4.34% over this period. The current price is substantially below the 52-week high of Rs.358, reflecting a notable downward trend over the past year.
The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. This technical positioning suggests that the stock has been under pressure for an extended period, with limited short-term support levels.
Broader market conditions have also been challenging. The Sensex opened 100.91 points lower and is currently trading at 81,417.21, down 0.15%. The index has experienced a three-week consecutive decline, losing 2.58% in that timeframe. Additionally, other indices such as NIFTY MEDIA and NIFTY REALTY also hit new 52-week lows on the same day, indicating sector-wide and market-wide headwinds.
Long-Term Performance and Financial Metrics
Over the last year, CG-VAK Software & Exports Ltd has delivered a negative return of 39.97%, significantly underperforming the Sensex, which gained 8.02% during the same period. The stock’s underperformance extends beyond the last year, with returns lagging behind the BSE500 index over the past three years, one year, and three months.
Financially, the company has exhibited modest growth in net sales and operating profit, with annual growth rates of 12.32% and 12.47% respectively over the last five years. While these figures indicate steady expansion, they fall short of the benchmarks typically expected in the Computers - Software & Consulting sector, contributing to the cautious market sentiment.
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Profitability and Valuation Indicators
Despite the stock’s price decline, CG-VAK Software & Exports Ltd demonstrates strong management efficiency, reflected in a return on equity (ROE) of 17.95%. The company maintains a low average debt-to-equity ratio of zero, indicating a conservative capital structure with minimal leverage risk.
Recent quarterly results have been positive, with the company reporting a profit after tax (PAT) of Rs.8.71 crores for the first nine months, marking a growth of 46.63%. The quarterly PBDIT reached a high of Rs.4.35 crores, and the operating profit margin to net sales ratio peaked at 23.80%, underscoring operational profitability despite the stock’s price weakness.
The valuation metrics also suggest an attractive price point relative to the company’s fundamentals. With an ROE of 14.5% and a price-to-book value of 1.3, the stock is trading at a discount compared to its peers’ historical averages. The company’s PEG ratio stands at 0.2, indicating that earnings growth is not fully reflected in the current share price.
Shareholding and Market Capitalisation
The majority of shares are held by promoters, reflecting concentrated ownership. The company’s market capitalisation grade is rated 4, consistent with its micro-cap status within the Computers - Software & Consulting sector. The Mojo Score for CG-VAK Software & Exports Ltd is 46.0, with a recent downgrade from Hold to Sell on 11 Aug 2025, reflecting the evolving assessment of the stock’s prospects.
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Summary of Key Concerns
The stock’s decline to Rs.198, its lowest level in 52 weeks, is a reflection of several factors. The underwhelming long-term growth rates in sales and operating profit have weighed on investor confidence. The stock’s performance has lagged behind major indices and sector benchmarks, with a nearly 40% loss over the past year. Technical indicators, including trading below all major moving averages, reinforce the current downtrend.
Market-wide weakness, as evidenced by the Sensex’s recent losses and other sector indices hitting lows, has compounded the pressure on CG-VAK Software & Exports Ltd. While the company’s financial health and profitability metrics remain solid, these have not translated into positive price momentum in the near term.
Conclusion
CG-VAK Software & Exports Ltd’s fall to a 52-week low of Rs.198 highlights the challenges faced by the stock amid a difficult market environment and subdued growth metrics. The stock’s valuation and profitability indicators suggest underlying strengths, but these have yet to be reflected in the share price. The current market context and technical signals indicate continued caution around the stock’s near-term performance.
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