Newgen Software

Market Cap: Mid Cap
Industry: IT - Software
ISIN: INE619B01017
NSEID: NEWGEN
BSEID: 540900

INR

900.65

21.95 (2.5%)

BSENSE

Apr 11, 12:53 PM

BSE+NSE Vol: 2.63 lacs

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Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

HCL Technologies

Wipro

TCS

Infosys

Indiamart Inter.

Birlasoft Ltd

Cyient

Newgen Software

C.E. Info System

Data Pattern

Eternal Ltd

Why is Newgen Software Technologies Ltd ?

Stock is technically in a Bearish range

The technical trend has deteriorated from Mildly Bearish on 03-Apr-25 and has generated -9.28% returns since then
Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST

With ROE of 22.4, it has a Very Expensive valuation with a 9.6 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 11.41%, its profits have risen by 38% ; the PEG ratio of the company is 1.1

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Software )

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Newgen Software for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Newgen Software

11.61%

0.20

56.91%

SENSEX

0.45%

0.03

14.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.28%

EBIT Growth (5y)

23.22%

EBIT to Interest (avg)

47.67

Debt to EBITDA (avg)

0.28

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.99

Tax Ratio

19.90%

Dividend Payout Ratio

22.22%

Pledged Shares

Institutional Holding

29.40%

ROCE (avg)

39.73%

ROE (avg)

19.94%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

9.58

EV to EBIT

35.66

EV to EBITDA

32.53

EV to Capital Employed

19.15

EV to Sales

8.21

PEG Ratio

1.09

Dividend Yield

0.45%

ROCE (Latest)

48.89%

ROE (Latest)

22.45%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

16What is working for the Company

NET SALES(HY)

At Rs 742.27 cr has Grown at 20.32 %

PAT(HY)

At Rs 159.33 cr has Grown at 37.19 %

ROCE(HY)

Highest at 27.39 %

PBT LESS OI(Q)

At Rs 98.25 cr has Grown at 42.72 %

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

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Here's what is working for Newgen Software

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 98.25 cr has Grown at 42.72 %

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Net Sales - Quarterly

Highest at Rs 381.11 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 89.00 cr has Grown at 30.2 %

Year on Year (YoY)

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)