Recent Price Movement and Market Context
On 18 Dec 2025, CG-VAK Software & Exports recorded an intraday low of Rs.224.1, representing a 4.25% drop from its previous close. The stock’s intraday high was Rs.239.95, showing some volatility during the trading session. Over the last two days, the stock has declined by approximately 1.61%, underperforming its sector by the same margin. This movement places the stock below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward pressure.
The broader market, represented by the Sensex, also faced a negative session. After opening flat with a minor change of -41.32 points, the Sensex fell by 266.79 points to close at 84,251.54, down 0.36%. Despite this, the Sensex remains 2.26% below its 52-week high of 86,159.02. The index is trading below its 50-day moving average, although the 50-day average remains above the 200-day average, indicating a mixed technical picture for the market overall.
Long-Term Performance and Comparative Analysis
Over the past year, CG-VAK Software & Exports has delivered a return of -33.61%, contrasting sharply with the Sensex’s positive 5.08% return over the same period. The stock’s 52-week high was Rs.379, highlighting the extent of the recent 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.
Such relative weakness has contributed to the stock’s current valuation discount compared to its peers in the Computers - Software & Consulting sector. Despite this, the company’s market capitalisation remains modest, reflecting its micro-cap status within the industry.
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Financial Growth and Profitability Metrics
Examining the company’s financials over the last five years, net sales have shown a compound annual growth rate of 12.32%, while operating profit has grown at a similar rate of 12.47%. These figures indicate moderate expansion but fall short of robust growth levels expected in the sector.
In the most recent quarters, CG-VAK Software & Exports has reported positive results for three consecutive periods. The highest quarterly PBDIT reached Rs.4.35 crores, with an operating profit to net sales ratio peaking at 23.80%. Additionally, profit before tax excluding other income was recorded at Rs.3.85 crores in the latest quarter. These figures suggest operational profitability despite the stock’s price decline.
Balance Sheet and Efficiency Indicators
The company maintains a low average debt-to-equity ratio of zero, indicating a debt-free capital structure. This conservative financial stance reduces leverage risk and supports financial stability.
Return on equity (ROE) stands at 17.95%, reflecting efficient utilisation of shareholder funds. The trailing twelve-month ROE is slightly lower at 14.5%, but still indicates a relatively high level of management efficiency compared to industry norms.
Valuation and Market Position
CG-VAK Software & Exports trades at a price-to-book value of approximately 1.5, which is considered attractive relative to its peers. The company’s price-to-earnings-to-growth (PEG) ratio is 0.2, signalling that the stock is valued at a discount when factoring in profit growth of 47% over the past year.
Despite the recent price weakness, the company’s majority shareholding remains with promoters, providing a degree of ownership stability.
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Summary of Current Situation
The decline of CG-VAK Software & Exports to its 52-week low of Rs.224.1 reflects a combination of subdued price momentum, sector headwinds, and relative underperformance against benchmark indices. While the company’s financials show steady sales growth, positive quarterly profitability, and strong management efficiency, these factors have not translated into upward price movement in recent sessions.
The stock’s position below all major moving averages and its recent consecutive declines highlight the challenges faced in regaining investor confidence. Meanwhile, the broader market’s modest retreat adds to the cautious environment for micro-cap stocks within the software and consulting sector.
Investors analysing CG-VAK Software & Exports will note the contrast between the company’s operational metrics and its market valuation, which currently trades at a discount to peers. The company’s debt-free status and consistent profitability provide a foundation amid the prevailing price weakness.
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