Recent Price Movement and Market Context
On the day of the new low, Protean eGov’s share price declined by 2.00%, touching an intraday low of Rs.589, which represents a 2.25% drop from the previous close. This decline occurred despite the stock outperforming its sector, Computers - Software & Consulting, which fell by 4.64% on the same day. Over the past five consecutive trading sessions, the stock has lost 6.07% in value, signalling sustained selling pressure.
Comparatively, the benchmark Sensex declined by 1.33% on the day, while Protean eGov’s one-week performance shows a 5.83% loss against Sensex’s 1.51% fall. The stock’s one-month return stands at -3.15%, contrasting with the Sensex’s positive 0.80% gain. Over three months, the stock’s decline deepens to -26.50%, significantly worse than the Sensex’s -3.19% performance.
Long-Term Performance Deficit
Protean eGov’s long-term returns reveal a stark underperformance relative to the broader market. Over the past year, the stock has plummeted by 57.32%, while the Sensex has appreciated by 10.39%. Year-to-date, the stock is down 21.81%, compared to the Sensex’s 3.56% decline. Notably, the stock has delivered no gains over the last three and five years, with a flat 0.00% return, whereas the Sensex has surged by 38.22% and 61.85% respectively over these periods. The ten-year performance gap is even more pronounced, with the Sensex up 255.97% while Protean eGov remains unchanged.
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Valuation and Financial Metrics
Protean eGov Technologies Ltd currently holds a Mojo Score of 31.0 with a Mojo Grade of Sell, downgraded from Hold on 29 Sep 2025. The company’s market capitalisation grade is rated at 3, indicating a relatively modest market cap within its sector. The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring the prevailing bearish momentum.
The company’s valuation metrics reveal a Price to Book Value ratio of 2.4, which is considered expensive relative to its return on equity (ROE) of 8.9%. This valuation is discounted compared to its peers’ average historical valuations, yet it remains elevated given the company’s financial performance. The Price/Earnings to Growth (PEG) ratio stands at 11.4, reflecting a high valuation relative to earnings growth.
Profitability and Return Ratios
Operating profit has contracted at an annualised rate of -17.75% over the last five years, signalling a decline in core profitability. The company reported flat results in the December 2025 half-year period, with a Return on Capital Employed (ROCE) at a low 11.30%. Non-operating income constitutes a significant 43.21% of Profit Before Tax (PBT) in the latest quarter, indicating reliance on income sources outside core operations.
Debt and Institutional Holdings
Protean eGov maintains a low average Debt to Equity ratio of zero, reflecting a debt-free capital structure. Institutional investors hold a substantial 28.99% stake in the company, suggesting that entities with greater analytical resources maintain exposure despite the stock’s recent performance.
Sector and Market Comparison
Within the Computers - Software & Consulting sector, Protean eGov’s underperformance is notable. While the sector has experienced a decline of 4.64% on the day of the new low, the stock’s losses have been more pronounced over multiple time frames. The stock’s three-month decline of 26.50% far exceeds the sector and market averages, highlighting its relative weakness.
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Summary of Performance Trends
The stock’s performance over the past year and beyond has been below par. Despite a modest 2.5% increase in profits over the last year, the stock has generated a negative return of 57.32%. This divergence between profit growth and share price performance highlights valuation pressures and market sentiment challenges. The stock has also underperformed the BSE500 index over the last three months, one year, and three years, indicating a persistent lag behind broader market benchmarks.
Conclusion
Protean eGov Technologies Ltd’s stock reaching an all-time low of Rs.589 reflects a culmination of extended declines in price and valuation metrics. The company’s financial indicators, including subdued operating profit growth, low ROCE, and reliance on non-operating income, contribute to the current market assessment. While the stock trades at a discount to peer valuations, its long-term and recent performance trends remain subdued relative to the broader market and sector indices.
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