Compucom Software Ltd Falls to 52-Week Low of Rs.14.45 Amidst Prolonged Downtrend

Stock Performance and Market Context

On 12 Jan 2026, Compucom Software Ltd (Stock ID: 542114) recorded a day’s decline of 3.38%, aligning with the sector’s overall fall of 3.52% in IT - Education. The stock has been on a consistent downward trend, losing value for five consecutive trading sessions and registering a cumulative loss of 10.17% over this period. This recent slide has pushed the share price to Rs.14.45, the lowest level seen in the past year, well below its 52-week high of Rs.27.86.

Compucom’s current trading levels are below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained bearish momentum. This contrasts with the broader market, where the Sensex, despite a negative opening and a fall of 464.03 points (-0.72%) to 82,971.28, remains within 3.84% of its 52-week high of 86,159.02. The Sensex’s 50-day moving average remains above its 200-day moving average, signalling a more stable medium-term trend compared to Compucom’s share price.

Financial Metrics and Valuation Insights

Compucom Software Ltd’s financial profile reveals a mixed picture. The company’s operating profit has grown at an annualised rate of 19.50% over the last five years, reflecting moderate long-term growth. However, the return on equity (ROE) stands at a modest 2.3%, which is relatively low for the sector. The stock’s price-to-book value ratio is 0.9, suggesting that it is trading near fair value compared to its peers’ historical averages.

Despite the share price decline, the company’s profitability has shown notable improvement. Over the past year, profits have surged by 115.4%, with the latest six-month PAT reported at Rs.2.03 crore. This profit growth contrasts with the stock’s 44.24% negative return over the same period, indicating a disconnect between earnings performance and market valuation. The company’s PEG ratio of 0.3 further reflects this disparity, suggesting that the stock’s price decline has outpaced earnings growth.

Sector and Market Comparisons

Within the Other Consumer Services industry and sector, Compucom’s performance has lagged behind broader benchmarks. Over the last year, the stock’s return of -44.24% contrasts sharply with the Sensex’s positive 7.35% gain. Additionally, Compucom has underperformed the BSE500 index over one year, three years, and the last three months, highlighting persistent challenges in maintaining competitive market positioning.

The IT - Education sector itself has experienced a decline of 3.52% recently, reflecting sector-wide pressures that have contributed to Compucom’s share price weakness. However, the stock’s sharper decline relative to its sector peers points to company-specific factors influencing investor sentiment.

Shareholding and Capital Structure

Compucom Software Ltd maintains a conservative capital structure, with an average debt-to-equity ratio of just 0.01 times, indicating minimal reliance on debt financing. The majority shareholding remains with promoters, providing a stable ownership base. This low leverage profile may offer some resilience amid market volatility, though it has not prevented the recent share price decline.

Mojo Score and Analyst Ratings

According to MarketsMOJO’s latest assessment dated 29 Nov 2024, Compucom Software Ltd holds a Mojo Score of 37.0, categorised under a Sell grade. This represents an upgrade from a previous Strong Sell rating, reflecting some improvement in the company’s outlook. The market capitalisation grade stands at 4, indicating a micro-cap status. These ratings underscore the cautious stance on the stock amid its recent price movements and financial metrics.

The downgrade in sentiment is consistent with the stock’s underperformance relative to sector and market indices, as well as its position below key technical levels.

Summary of Key Price and Performance Indicators

To summarise, Compucom Software Ltd’s share price has declined to Rs.14.45, its lowest point in the last 52 weeks, following a sustained five-day losing streak. The stock’s 1-year return of -44.24% contrasts with the Sensex’s positive 7.35% performance, while the sector has also experienced a moderate decline. Despite profit growth of 115.4% over the past year and a low debt profile, the stock’s valuation metrics and technical indicators reflect ongoing pressures.

Investors and market participants will note the divergence between earnings improvement and share price performance, as well as the company’s position relative to moving averages and sector trends.

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