Recent Price Movement and Market Context
On the trading day, Compucom Software Ltd underperformed its sector, which itself declined by 2.08%, with the stock falling 4.03%. This decline contributed to the stock breaching its previous 52-week low, set well below its 52-week high of Rs.26.83. The stock’s current price is trading beneath all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
The broader market environment has been challenging, with the Sensex opening 385.82 points lower and closing down 277.79 points at 81,516.86, a decline of 0.81%. The Sensex itself is on a three-week losing streak, down 4.95% over that period, and trading below its 50-day moving average, although the 50DMA remains above the 200DMA. This market backdrop has compounded the pressure on Compucom Software Ltd’s share price.
Long-Term Performance and Relative Returns
Over the past year, Compucom Software Ltd has delivered a total return of -48.50%, significantly underperforming the Sensex, which posted a positive return of 7.53% during the same period. The stock has also lagged behind the BSE500 index across multiple time frames, including the last three years, one year, and three months, indicating persistent challenges in generating shareholder value relative to broader market benchmarks.
This underperformance is reflected in the company’s Mojo Score of 40.0, with a current Mojo Grade of Sell, downgraded from Strong Sell as of 29 Nov 2024. The Market Cap Grade stands at 4, underscoring the company’s relatively modest market capitalisation within its sector.
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Financial Metrics and Valuation Insights
Despite the share price decline, Compucom Software Ltd’s financial fundamentals present a mixed picture. The company maintains a low average Debt to Equity ratio of 0.01 times, indicating minimal leverage and a conservative capital structure. Profitability metrics show some improvement, with the company reporting a 500.00% growth in Profit After Tax (PAT) for the nine months ending September 2025, reaching Rs.2.88 crores.
The Return on Equity (ROE) stands at 2.3%, which is modest but suggests some capacity to generate returns on shareholder funds. The Price to Book Value ratio is 0.8, indicating that the stock is trading at a discount relative to its book value, which may reflect market scepticism or undervaluation compared to peers. The company’s PEG ratio of 0.3 further suggests that earnings growth is not fully priced into the current valuation.
Sector and Industry Positioning
Compucom Software Ltd operates within the Other Consumer Services industry, a segment that has experienced a decline of 2.08% recently. The stock’s underperformance relative to its sector peers is notable, as the sector itself is facing headwinds. The company’s market capitalisation and scale remain limited, which may contribute to volatility and sensitivity to broader market movements.
Promoters remain the majority shareholders, maintaining control over the company’s strategic direction. This ownership structure can provide stability but also concentrates decision-making power.
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Growth Trends and Profitability Analysis
Over the last five years, Compucom Software Ltd’s operating profit has grown at an annual rate of 19.50%, which is considered modest within the sector. However, this growth rate has not translated into sustained share price appreciation, as evidenced by the stock’s significant decline over the past year and longer-term underperformance.
Profit growth over the past year has been robust, with profits rising by 115.4%, yet this has not been reflected in the stock price, which has fallen by nearly half. This divergence between earnings growth and market valuation highlights the cautious stance investors have taken towards the company.
Technical Indicators and Price Momentum
The stock’s position below all major moving averages signals a bearish trend, with no immediate technical support evident. The three-day consecutive decline and underperformance relative to the sector suggest continued selling pressure. The broader market’s weakness, particularly the Sensex’s recent losses, has likely exacerbated the stock’s downward trajectory.
Given the current price of Rs.12.86, the stock is trading at a substantial discount to its 52-week high of Rs.26.83, reflecting a near 52% decline from its peak. This level marks a critical point for the stock, representing the lowest valuation in the past year.
Summary of Key Metrics
To summarise, Compucom Software Ltd’s key financial and market metrics as of 21 Jan 2026 are:
- 52-Week Low Price: Rs.12.86
- 52-Week High Price: Rs.26.83
- One-Year Return: -48.50%
- Mojo Score: 40.0 (Sell Grade)
- Debt to Equity Ratio (Average): 0.01
- PAT Growth (9M Sep 2025): 500.00%
- ROE: 2.3%
- Price to Book Value: 0.8
- PEG Ratio: 0.3
The stock’s current valuation and performance metrics reflect a company facing challenges in translating earnings growth into market confidence, compounded by sectoral and broader market pressures.
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