Stock Price Movement and Market Context
On 14 Jan 2026, CG-VAK Software & Exports Ltd opened with a positive gap, rising 2.61% to an intraday high of Rs.225.75. However, the stock reversed course during the session, ultimately hitting a low of Rs.214.05, down 2.7% from the previous close. This closing price represents the lowest level the stock has traded at in the past 52 weeks, underscoring a notable downtrend.
The stock underperformed its sector, Computers - Software & Consulting, by 1.05% on the day. It is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum.
Meanwhile, the broader market showed mixed signals. The Sensex opened 269.15 points lower and was trading at 83,293.76, down 0.4%, and remained 3.44% below its 52-week high of 86,159.02. Notably, small-cap stocks led gains with the BSE Small Cap index rising 0.17%, contrasting with CG-VAK’s decline.
Long-Term Performance and Valuation Metrics
Over the past year, CG-VAK Software & Exports Ltd has delivered a total return of -37.68%, significantly lagging behind the Sensex’s positive 8.88% return during the same period. The stock’s 52-week high was Rs.379, highlighting the extent of the recent price erosion.
The company’s long-term growth has been modest, with net sales increasing at an annualised rate of 12.32% and operating profit growing at 12.47% over the last five years. Despite these growth rates, the stock’s performance has been below par relative to the BSE500 index across multiple time frames, including the last three years, one year, and three months.
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Financial Health and Profitability Indicators
CG-VAK Software & Exports Ltd maintains a strong financial position with an average debt-to-equity ratio of zero, reflecting a debt-free capital structure. This conservative leverage profile supports financial stability amid market pressures.
The company exhibits high management efficiency, demonstrated by a return on equity (ROE) of 17.95%, which is a robust indicator of profitability relative to shareholder equity. The quarterly financials reveal positive trends, with the highest quarterly PBDIT recorded at Rs.4.35 crore and an operating profit margin of 23.80% relative to net sales. Additionally, profit before tax excluding other income reached Rs.3.85 crore in the latest quarter.
Valuation metrics suggest the stock is trading at a discount compared to its peers’ historical averages. The price-to-book value stands at 1.4, which is considered very attractive given the company’s ROE of 14.5%. The price-to-earnings-to-growth (PEG) ratio is notably low at 0.2, reflecting the relationship between the stock price, earnings growth, and valuation.
Shareholding and Market Sentiment
The majority of CG-VAK Software & Exports Ltd’s shares are held by promoters, indicating concentrated ownership. This structure often implies a stable controlling interest but can also limit liquidity in the stock.
Despite the recent price decline, the company has reported positive results for three consecutive quarters, signalling operational resilience. However, the stock’s downward trajectory and underperformance relative to benchmarks have influenced its current market grade.
Mojo Score and Grade Update
MarketsMOJO assigns CG-VAK Software & Exports Ltd a Mojo Score of 46.0, categorising it with a Sell grade as of 11 Aug 2025, a downgrade from the previous Hold rating. The market capitalisation grade is 4, reflecting its mid-cap status within the Computers - Software & Consulting sector.
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Summary of Key Performance Indicators
To summarise, CG-VAK Software & Exports Ltd’s stock has experienced a significant decline, reaching Rs.214.05, its lowest level in a year. The stock’s underperformance is evident in its negative 37.68% return over the last 12 months, contrasting with the broader market’s positive trajectory. While the company maintains strong profitability metrics and a debt-free balance sheet, its growth rates and relative performance have not met market expectations.
The downgrade to a Sell grade by MarketsMOJO reflects these factors, alongside the stock’s trading below all major moving averages. The company’s recent quarterly results remain positive, but the share price has yet to reflect this in the current market environment.
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