Stock Price Movement and Market Context
On 20 Jan 2026, Lee & Nee Software (Exports) Ltd’s share price declined by 7.99% in a single trading session, closing at Rs.7, the lowest level in the past year. This drop extends a three-day losing streak during which the stock has fallen by 13.5%. The current price is substantially below its 52-week high of Rs.14.05, representing a decline of over 50% from that peak.
The stock’s performance today notably lagged behind its sector peers, underperforming the Computers - Software & Consulting sector by 7.03%. Furthermore, Lee & Nee Software is 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 broader market index, Sensex, experienced a modest decline of 0.44%, closing at 82,881.03 points. The Sensex is currently 3.96% below its 52-week high of 86,159.02 and has recorded a three-week consecutive fall, losing 3.36% over that period. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating some underlying market resilience despite recent weakness.
Financial Performance and Fundamental Assessment
Lee & Nee Software’s financial metrics continue to reflect challenges. The company reported flat results in the September 2025 half-year period, with cash and cash equivalents at a low of Rs.1.40 crore. Quarterly earnings per share (EPS) have also reached a low point of Rs.0.01, underscoring limited profitability.
Operating losses have contributed to a weak long-term fundamental profile. Over the past five years, operating profit has grown at a modest annual rate of 2.29%, which is below industry expectations for sustainable growth. The company’s ability to service debt remains constrained, with an average EBIT to interest ratio of -0.93, indicating that earnings before interest and tax are insufficient to cover interest expenses.
Despite a 26% increase in profits over the past year, the stock’s return has been negative at -45.54%, highlighting a disconnect between earnings growth and market valuation. The company’s PEG ratio stands at 0.4, suggesting that the stock is trading at a valuation level that does not fully reflect its earnings growth potential.
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Long-Term and Recent Performance Trends
Over the last year, Lee & Nee Software has underperformed significantly relative to the Sensex, which posted a positive return of 7.50% during the same period. The stock’s one-year return of -45.54% contrasts sharply with the benchmark’s gains, reflecting persistent headwinds.
Additionally, the company’s performance has been below par over longer time horizons. It has underperformed the BSE500 index over the past three years, one year, and three months, indicating a consistent trend of relative weakness in both near and long-term frames.
The stock’s risk profile is elevated due to negative EBITDA and trading at valuations that are considered risky compared to its historical averages. This heightened risk is compounded by the company’s weak fundamental strength and limited growth prospects.
Shareholding and Market Grade
The majority shareholding of Lee & Nee Software remains with the promoters, maintaining a concentrated ownership structure. The company’s market capitalisation grade is rated at 4, reflecting its micro-cap status within the Computers - Software & Consulting sector.
On 18 Nov 2025, the company’s Mojo Grade was downgraded from Sell to Strong Sell, with a current Mojo Score of 12.0. This grading reflects the deteriorated outlook based on financial metrics, valuation, and market performance.
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Summary of Key Metrics
To summarise, Lee & Nee Software (Exports) Ltd’s current stock price of Rs.7 represents a 52-week low, with a significant decline from its high of Rs.14.05. The stock has experienced a 13.5% drop over the last three trading days and is trading below all major moving averages, signalling continued downward pressure.
The company’s financial indicators reveal limited cash reserves, minimal quarterly earnings, and a weak capacity to service debt. Despite some profit growth, the stock’s valuation and returns have not aligned favourably, resulting in a Strong Sell grade from MarketsMOJO as of November 2025.
Market conditions have also been challenging, with the Sensex experiencing a three-week decline, although the broader index remains closer to its 52-week high than Lee & Nee Software’s stock price.
Overall, the stock’s recent performance and fundamental data highlight the challenges faced by Lee & Nee Software within the Computers - Software & Consulting sector.
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