Newgen Software Technologies Limited (IN:NEWGEN)
:NEWGEN
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Newgen Software Technologies Limited
(NEWGEN)
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Rating:65Neutral
Price Target:
₹473.00
▼(-43.67% Downside)
Action:ReiteratedDate:02/21/26
The score is primarily supported by strong financial performance (growth, margins, low leverage, solid free cash flow), but is meaningfully held back by weak technical signals (price well below key moving averages and negative MACD). Valuation is middle-of-the-road with a modest dividend yield.
Positive Factors
Robust profitability margins
Sustained high gross, EBIT and net margins indicate durable operating leverage in Newgen's software model. Healthy margins support ongoing R&D and product investment, enabling competitive pricing and reinvestment into platform capabilities that drive long-term customer retention and profitability.
Negative Factors
Decline in operating cash flow
A drop in operating cash flow can signal slower collections, timing of large implementations, or margin pressure in services. If persistent, it reduces available capital for reinvestment and could force trade-offs between growth initiatives, working capital and shareholder returns over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Robust profitability margins
Sustained high gross, EBIT and net margins indicate durable operating leverage in Newgen's software model. Healthy margins support ongoing R&D and product investment, enabling competitive pricing and reinvestment into platform capabilities that drive long-term customer retention and profitability.
Read all positive factors
Newgen Software Technologies Limited (NEWGEN) vs. iShares MSCI India ETF (INDA)
Market Cap
₹62.65B
Dividend Yield0.59%
Average Volume (3M)58.88K
Price to Earnings (P/E)47.4
Beta (1Y)1.17
Revenue Growth11.47%
EPS Growth12.41%
CountryIN
Employees3,890
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)5.40
Shares Outstanding142,317,780
10 Day Avg. Volume33,269
30 Day Avg. Volume58,884
Financial Highlights & Ratios
PEG Ratio1.81
Price to Book (P/B)9.42
Price to Sales (P/S)9.61
P/FCF Ratio74.55
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹770.00Price Target Upside-8.30% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)27.22
Revenue Forecast (FY)₹18.39B
Newgen Software Technologies Limited Business Overview & Revenue Model
Company Description
Newgen Software Technologies Limited, a software company, provides software products and solutions in India, Europe, the Middle East, Africa, the Asia Pacific, and the United States. The company offers enterprise content management software, which...
How the Company Makes Money
Newgen primarily makes money by selling and supporting enterprise software used for process automation and content-driven applications. Key revenue streams include: (1) Software licensing/subscription: revenue from licensing its platforms and solu...
Newgen Software Technologies Limited Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
80
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.32B | 14.87B | 12.44B | 9.74B | 7.79B | 6.73B |
| Gross Profit | 6.61B | 7.46B | 6.16B | 4.58B | 3.70B | 3.45B |
| EBITDA | 3.92B | 3.60B | 2.74B | 2.02B | 1.87B | 1.81B |
| Net Income | 3.29B | 3.15B | 2.52B | 1.77B | 1.64B | 1.26B |
Balance Sheet | ||||||
| Total Assets | 20.71B | 20.45B | 16.86B | 13.42B | 11.07B | 9.21B |
| Cash, Cash Equivalents and Short-Term Investments | 9.82B | 9.24B | 7.41B | 3.40B | 3.68B | 3.25B |
| Total Debt | 893.60M | 534.85M | 485.07M | 427.13M | 278.23M | 200.91M |
| Total Liabilities | 4.79B | 5.29B | 4.63B | 3.62B | 2.96B | 2.55B |
| Stockholders Equity | 15.93B | 15.16B | 12.24B | 9.77B | 8.11B | 6.66B |
Cash Flow | ||||||
| Free Cash Flow | 870.05M | 1.92B | 2.68B | 1.20B | 1.30B | 2.04B |
| Operating Cash Flow | 895.77M | 2.15B | 2.81B | 1.36B | 1.43B | 2.16B |
| Investing Cash Flow | -402.26M | -1.72B | -2.19B | -942.98M | -805.92M | -1.43B |
| Financing Cash Flow | -746.65M | -680.86M | -474.55M | -440.48M | -319.74M | -1.02B |
Newgen Software Technologies Limited Technical Analysis
Negative
839.70
Price Trends
514.45
Negative
690.56
Negative
823.27
Negative
Market Momentum
-29.10
Negative
42.69
Neutral
39.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NEWGEN, the sentiment is Negative. The current price of 839.7 is above the 20-day moving average (MA) of 445.63, above the 50-day MA of 514.45, and above the 200-day MA of 823.27, indicating a bearish trend. The MACD of -29.10 indicates Negative momentum. The RSI at 42.69 is Neutral, neither overbought nor oversold. The STOCH value of 39.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NEWGEN.
Newgen Software Technologies Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | ₹62.65B | 47.37 | ― | 0.59% | 11.47% | 12.41% | |
64 Neutral | ₹89.53B | 33.59 | ― | 2.62% | 1.68% | -12.95% | |
62 Neutral | ₹91.87B | 118.88 | ― | 0.69% | 15.87% | 39.55% | |
62 Neutral | ₹123.80B | 19.99 | ― | 1.75% | 9.16% | 7.77% | |
62 Neutral | ₹74.57B | -10.28 | ― | 0.55% | -17.23% | -185.73% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | ₹109.87B | 25.29 | ― | 0.15% | -19.16% | -92.64% |
* Technology Sector Average
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Newgen Software Technologies Limited Corporate Events
Newgen bags RM 6.75 million Malaysian bank deal for retail loan platform
Mar 31, 2026
Newgen Software Technologies has secured a RM 6.75 million (about Rs 15.65 crore) international order from a leading Malaysian bank for a retail loan origination solution. The five-year contract covers software licensing, implementation, cloud hos...
Newgen wins $2.22 million Kuwait bank deal via Dubai subsidiary
Mar 15, 2026
Newgen Software Technologies’ Dubai-based wholly owned subsidiary has secured a USD 2.22 million (about Rs 20.54 crore) contract from a leading bank in Kuwait for software licenses, implementation, and product support. The two-year internati...
Newgen bags USD 1.5 million Caribbean insurance digital platform deal
Mar 3, 2026
Newgen Software Technologies’ U.S. subsidiary, Newgen Software Inc., has signed a Master Service Agreement with an insurance company in the Caribbean to supply, install, and implement the NewgenONE Digital Transformation Platform. The three-...
Newgen Software Publishes Q3 FY26 Earnings Call Transcript
Jan 25, 2026
Newgen Software Technologies Limited has released the official transcript of its Q3 FY 2026 earnings conference call with investors and analysts, held on 20 January 2026. The document, which features commentary from the company’s senior lead...
Newgen Shareholders Approve Appointment of Shubhi Nigam to Board via Postal Ballot
Jan 10, 2026
Newgen Software Technologies Limited has announced the outcome of a postal ballot in which shareholders approved the appointment of Ms. Shubhi Nigam as a Non-Executive Non-Independent Director of the company. The resolution, conducted through e-vo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.