Stock Performance Overview
On 2 Feb 2026, Protean eGov Technologies Ltd’s share price fell by 2.55%, underperforming the Sensex which declined marginally by 0.05%. This drop extended the stock’s losing streak to three consecutive days, resulting in a cumulative return of -3.82% over this short span. The stock’s performance over longer intervals paints a more concerning picture: a 1-month return of -22.98%, a 3-month return of -29.79%, and a 1-year return of -59.77%, all substantially lagging the Sensex’s respective returns of -5.92%, -3.88%, and +4.10% over the same periods.
Year-to-date, the stock has declined by 21.46%, compared to the Sensex’s fall of 5.32%. Over three and five years, Protean eGov Technologies Ltd has recorded flat returns, while the Sensex has appreciated by 34.63% and 62.03% respectively. The 10-year comparison is even more stark, with the Sensex rising 228.80% while the stock remains unchanged.
Additionally, the stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling persistent downward momentum. Its underperformance extends to the sector level, with the stock lagging the Computers - Software & Consulting sector by 1.09% on the day.
Financial Metrics and Valuation
Protean eGov Technologies Ltd’s financial indicators reflect subdued growth and valuation pressures. The company’s operating profit has contracted at an annualised rate of -38.82% over the past five years, indicating a prolonged period of earnings decline. The return on capital employed (ROCE) for the half-year ended September 2025 stands at a low 11.30%, while the return on equity (ROE) is recorded at 8.9%, suggesting modest profitability relative to shareholder equity.
Non-operating income constitutes a significant 45.57% of the company’s quarterly profit before tax (PBT), highlighting a reliance on income sources outside core operations. Despite this, the company maintains a low average debt-to-equity ratio of zero, indicating minimal leverage on its balance sheet.
Valuation metrics show the stock trading at a price-to-book value of 2.4, which is considered fair but at a discount relative to its peers’ historical averages. The company’s PEG ratio stands at 3.2, reflecting the relationship between its price-to-earnings ratio and earnings growth, which is relatively elevated given the subdued profit growth.
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Market Context and Institutional Holding
Protean eGov Technologies Ltd operates within the Computers - Software & Consulting sector, which has generally outperformed the stock over multiple time frames. The company’s Mojo Score is 40.0, with a Mojo Grade of Sell, downgraded from Hold on 29 Sep 2025. Its market capitalisation grade is rated 3, reflecting a mid-tier market cap status.
Institutional investors hold a significant 28.99% stake in the company, indicating a notable presence of entities with advanced analytical capabilities. This level of institutional holding suggests that the stock’s valuation and performance have been closely monitored by professional investors.
Despite the stock’s recent declines, the company’s low debt levels provide a degree of financial stability. However, the combination of weak long-term earnings growth, subdued returns on capital, and reliance on non-operating income components has contributed to the stock’s current valuation pressures.
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Comparative Performance and Historical Trends
Over the past year, Protean eGov Technologies Ltd’s stock has declined by nearly 60%, a stark contrast to the Sensex’s positive 4.10% return. The company’s flat returns over three and five years further underscore its relative underperformance. This trend is compounded by the stock’s failure to generate positive returns over the last decade, while the broader market has experienced substantial growth.
Profit growth over the past year has been modest, with an 8.8% increase despite the steep share price decline. This divergence between earnings and stock price is reflected in the elevated PEG ratio, signalling that the market’s valuation of the company is not fully aligned with its earnings trajectory.
The stock’s consistent trading below all major moving averages indicates persistent downward pressure, with no recent technical signals suggesting a reversal. This technical backdrop aligns with the fundamental challenges observed in the company’s financial metrics.
Summary of Key Financial Indicators
• Operating profit annualised decline over five years: -38.82%
• ROCE (Half Year Sep 2025): 11.30%
• ROE: 8.9%
• Non-operating income as % of quarterly PBT: 45.57%
• Debt to equity ratio (average): 0.0
• Price to book value: 2.4
• PEG ratio: 3.2
• Institutional holdings: 28.99%
These figures collectively illustrate a company facing significant valuation and performance challenges, with limited growth in core profitability and a share price reflecting these difficulties.
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