Stock Performance and Market Context
On 23 Jan 2026, CMS Info Systems Ltd touched an intraday low of Rs.318.45, representing a 2.7% decline on the day and a 2.38% drop compared to the previous close. This new 52-week low comes after two consecutive days of losses, during which the stock has fallen by 3.39%. The decline notably outpaced the sector’s performance, underperforming the Diversified Commercial Services sector by 2.58% on the same day.
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 a persistent bearish momentum. This technical positioning contrasts with the broader market, where the Sensex, despite a negative close of 0.84% at 81,617.04 points, remains above its 200-day moving average, though below its 50-day average.
Over the past year, CMS Info Systems Ltd has delivered a total return of -27.20%, significantly lagging the Sensex’s positive 6.66% return. The stock’s 52-week high was Rs.540.45, highlighting the extent of the recent decline.
Financial Performance and Growth Trends
CMS Info Systems Ltd’s long-term growth trajectory has been modest. Over the last five years, net sales have increased at an annualised rate of 13.18%, while operating profit has grown at 13.46% annually. These growth rates, while positive, have not translated into strong market performance or investor confidence.
The company’s recent quarterly results for September 2025 further illustrate the challenges faced. Profit Before Tax excluding other income (PBT LESS OI) stood at Rs.84.69 crore, down 24.2% compared to the average of the previous four quarters. Similarly, Profit After Tax (PAT) for the quarter was Rs.73.35 crore, a decline of 21.8% relative to the prior four-quarter average. These declines indicate a weakening in profitability in the near term.
Additionally, the company’s debtors turnover ratio for the half-year period was notably low at 0.24 times, suggesting slower collection efficiency and potential liquidity concerns.
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Valuation and Efficiency Metrics
Despite the subdued price performance, CMS Info Systems Ltd exhibits certain strengths in management efficiency and capital structure. The company maintains a high return on equity (ROE) of 17.17%, reflecting effective utilisation of shareholder funds. Its average debt-to-equity ratio remains at zero, indicating a conservative approach to leverage and a strong balance sheet position.
The stock’s valuation metrics also suggest it is trading at a fair level relative to its peers. With a price-to-book value of 2.3 and an ROE of 15.3%, the company’s shares are priced in line with historical averages within the Diversified Commercial Services sector. However, the recent profit decline of 0.7% over the past year has not supported upward price momentum.
Comparative Performance and Market Standing
CMS Info Systems Ltd’s underperformance extends beyond the last year. The stock has lagged the BSE500 index over the last three years, one year, and three months, underscoring persistent challenges in delivering returns relative to the broader market. This trend is reflected in the company’s Mojo Score of 44.0 and a Mojo Grade of Sell, downgraded from Hold on 12 Jan 2026.
Institutional investors hold a significant stake in the company, with 60.82% ownership. This level of institutional holding indicates that well-resourced investors maintain exposure to the stock despite recent setbacks, potentially reflecting confidence in the company’s underlying fundamentals or strategic positioning within the sector.
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Sector and Market Environment
The Diversified Commercial Services sector, to which CMS Info Systems Ltd belongs, has experienced mixed performance recently. On the same day the stock hit its 52-week low, the NIFTY REALTY index also recorded a new 52-week low, indicating sector-wide pressures. The broader market, represented by the Sensex, opened flat but declined sharply by 718.90 points, or 0.84%, by the close.
Within this environment, CMS Info Systems Ltd’s relative underperformance highlights the challenges faced by the company in maintaining investor confidence and market valuation amid broader market volatility and sector-specific headwinds.
Summary of Key Metrics
To summarise, CMS Info Systems Ltd’s stock has declined to Rs.318.45, its lowest level in 52 weeks, reflecting a combination of subdued growth rates, recent profit declines, and technical weakness. The company’s financial metrics show a mixed picture, with strong management efficiency and conservative leverage offset by slowing profitability and below-par returns relative to market benchmarks.
While the stock’s valuation remains aligned with sector norms, the recent downgrade to a Sell grade and the ongoing downward price trend underscore the challenges faced by CMS Info Systems Ltd in the current market context.
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