Stock Performance and Market Context
On 9 Jan 2026, CG-VAK Software & Exports Ltd (Stock ID: 287372) touched an intraday low of Rs.217, representing a 5.16% decline on the day. This drop outpaced the sector’s performance, underperforming the Computers - Software & Consulting sector by 5.2%. The stock 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 comparison, the Sensex opened 158.87 points lower and closed down 445.85 points at 83,576.24, a 0.72% decline. Despite this, the Sensex remains within 3.09% of its 52-week high of 86,159.02, highlighting a divergence between the broader market and CG-VAK’s stock trajectory.
Long-Term and Recent Returns
Over the past year, CG-VAK Software & Exports Ltd has delivered a negative return of 36.18%, a stark contrast to the Sensex’s positive 7.67% gain during the same period. The stock’s 52-week high was Rs.379, underscoring the extent of the decline. This underperformance extends beyond the last year, with the stock lagging behind the BSE500 index over the last three years, one year, and three months.
Financial Growth and Profitability Metrics
The company’s long-term growth rates have been modest, with net sales increasing at an annualised rate of 12.32% and operating profit growing at 12.47% over the past five years. While these figures indicate steady expansion, they fall short of the robust growth rates typically favoured in the software and consulting sector.
Despite the subdued growth, CG-VAK has demonstrated strong management efficiency, reflected in a high return on equity (ROE) of 17.95%. The company maintains a conservative capital structure with an average debt-to-equity ratio of zero, indicating no reliance on debt financing.
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Quarterly Financial Highlights
CG-VAK has reported positive results for three consecutive quarters, with the latest quarter showing a highest quarterly PBDIT of Rs.4.35 crores and an operating profit margin of 23.80%. Profit before tax excluding other income reached Rs.3.85 crores, marking a notable improvement in profitability metrics.
The company’s ROE for the latest quarter stands at 14.5%, accompanied by a price-to-book value ratio of 1.5, which is considered very attractive relative to its peers. This valuation discount is further emphasised by the company’s PEG ratio of 0.2, indicating that the stock is trading at a low price relative to its earnings growth.
Shareholding and Market Perception
The majority shareholding remains with the promoters, providing stability in ownership. However, the stock’s Mojo Score has deteriorated to 46.0, with a Mojo Grade downgraded from Hold to Sell as of 11 Aug 2025. The Market Capitalisation Grade stands at 4, reflecting the company’s micro-cap status within the Computers - Software & Consulting sector.
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Technical and Valuation Considerations
The stock’s current trading below all major moving averages signals a bearish technical stance. The 5.16% decline on the day and the new 52-week low of Rs.217 highlight the pressure on the stock price. This technical weakness is compounded by the stock’s underperformance relative to both the sector and broader market indices.
Valuation metrics suggest the stock is trading at a discount compared to its historical averages and peer group valuations. However, the modest growth rates and recent downgrades in grading reflect cautious market sentiment.
Summary of Key Metrics
To summarise, CG-VAK Software & Exports Ltd’s stock has declined to Rs.217, its lowest level in 52 weeks, amid a 36.18% negative return over the past year. The company’s long-term growth rates remain moderate, with net sales and operating profit growing at approximately 12% annually over five years. Profitability remains strong with a ROE near 18%, and the company maintains a debt-free balance sheet. Despite positive quarterly earnings trends, the stock’s technical indicators and grading have weakened, reflecting ongoing challenges in market performance.
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