Newgen Software Technologies Limited (NEWGEN) AI Stock Analysis

• Market Cap: ₹124.67B
• Dividend Yield: 0.5%
• Average Volume (3M): 58.88K
• Price to Earnings (P/E): 38.4
• Beta (1Y): 0.82
• Revenue Growth: 11.47%
• EPS Growth: 12.41%
• Country: IN
• Employees: 3,890
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 5.70
• Shares Outstanding: 141,678,790
• 10 Day Avg. Volume: 33,269
• 30 Day Avg. Volume: 58,884
• PEG Ratio: 1.81
• Price to Book (P/B): 9.42
• Price to Sales (P/S): 9.61
• P/FCF Ratio: 74.55
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹835.00
• Price Target Upside: -16.36% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ₹1,103.00 ▲(10.49% Upside)

Newgen Software Technologies Limited has a strong financial foundation, with robust revenue growth and profitability. However, technical indicators suggest potential overbought conditions, and the high P/E ratio raises valuation concerns. The absence of recent earnings call insights or notable corporate events leaves the financial performance and technical analysis as the primary factors influencing the score.

Newgen Software Technologies Limited Business Overview & Revenue Model

Company Description

Newgen Software Technologies Limited (NEWGEN) is a leading global provider of digital transformation solutions, specializing in enterprise content management, business process management, and customer engagement. Established in 1992 and headquartered in New Delhi, India, the company serves a diverse range of industries including banking, insurance, healthcare, and government. NEWGEN's core products include its low-code application development platform, document management software, and workflow automation tools, designed to enhance operational efficiency and improve customer experiences.

How the Company Makes Money

Newgen Software generates revenue primarily through the sale of software licenses, subscription fees for its cloud-based services, and professional services related to implementation and customization of its solutions. The company's revenue model includes both one-time license fees for on-premise deployments and recurring revenue from cloud subscriptions. Additionally, Newgen earns income from maintenance and support services for its software products. Significant partnerships with various technology companies and consulting firms further enhance its market reach and contribute to its earnings. The growing demand for digital transformation and automation solutions across industries also plays a crucial role in driving the company's revenue growth.

Newgen Software Technologies Limited Financial Statement Overview

Summary

Newgen Software Technologies Limited demonstrates strong financial performance with robust revenue growth, healthy profitability, and stable financial management. The income statement highlights impressive growth and margins, while the balance sheet underscores financial stability with low leverage. Although the cash flow shows positive trends, monitoring of operating cash flow will be important.

Income Statement

Newgen Software Technologies Limited has demonstrated strong revenue growth over the years, with a notable increase from 2024 to 2025. The gross profit margin and net profit margin are healthy, indicating efficient cost management and profitability. The EBIT and EBITDA margins are also robust, suggesting strong operational performance. Overall, the income statement reflects a positive growth trajectory and strong profitability.

Balance Sheet

The company's balance sheet shows a strong equity position with a high equity ratio, indicating financial stability. The debt-to-equity ratio is low, reflecting prudent leverage management. Return on equity is impressive, demonstrating effective use of shareholder capital to generate profits. The company's financial health is stable with a low risk of over-leverage.

Cash Flow

Newgen Software Technologies Limited has shown a consistent ability to generate positive free cash flow, although there was a decrease in operating cash flow from 2024 to 2025. The free cash flow to net income ratio remains strong, indicating efficient cash generation relative to net income. However, the decline in operating cash flow warrants attention. Overall, the cash flow statement reflects good cash management with some areas for improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.93B	14.87B	12.44B	9.74B	7.79B	6.73B
Gross Profit	7.44B	7.46B	6.16B	4.58B	3.70B	3.45B
EBITDA	3.59B	3.60B	2.74B	2.02B	1.87B	1.81B
Net Income	3.17B	3.15B	2.52B	1.77B	1.64B	1.26B
Balance Sheet
Total Assets	0.00	20.45B	16.86B	13.42B	11.07B	9.21B
Cash, Cash Equivalents and Short-Term Investments	9.24B	9.24B	7.41B	3.40B	3.68B	3.25B
Total Debt	0.00	534.85M	485.07M	427.13M	278.23M	200.91M
Total Liabilities	-15.16B	5.29B	4.63B	3.62B	2.96B	2.55B
Stockholders Equity	15.16B	15.16B	12.24B	9.77B	8.11B	6.66B
Cash Flow
Free Cash Flow	0.00	1.92B	2.68B	1.20B	1.30B	2.04B
Operating Cash Flow	0.00	2.15B	2.81B	1.36B	1.43B	2.16B
Investing Cash Flow	0.00	-1.72B	-2.19B	-942.98M	-805.92M	-1.43B
Financing Cash Flow	0.00	-680.86M	-474.55M	-440.48M	-319.74M	-1.02B

Newgen Software Technologies Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 998.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NEWGEN, the sentiment is Positive. The current price of 998.3 is above the 20-day moving average (MA) of 892.65, above the 50-day MA of 891.00, and below the 200-day MA of 1030.42, indicating a neutral trend. The MACD of 15.41 indicates Negative momentum. The RSI at 72.88 is Negative, neither overbought nor oversold. The STOCH value of 76.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:NEWGEN.

Newgen Software Technologies Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CYIENT	―	₹132.81B	22.48	―	2.52%	1.68%	-12.95%
ZENSARTECH	―	₹177.44B	26.37	―	1.60%	8.36%	0.83%
NEWGEN	―	₹124.67B	38.42	―	0.50%	11.47%	12.41%
INTELLECT	―	₹134.32B	37.96	―	0.68%	4.93%	15.12%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HFCL	―	₹108.89B	390.89	―	0.13%	-19.16%	-92.64%
TEJASNET	―	₹96.23B	―	―	0.46%	-17.23%	-185.73%

Newgen Software Technologies Limited Corporate Events

Newgen Software Releases Conference Call Recording for Q2 FY 2025-26

Newgen Software Technologies Limited has announced the availability of the audio recording from its conference call held on October 28, 2025, discussing the financial results for the quarter and half-year ending September 30, 2025. This release is part of the company’s commitment to transparency and compliance with SEBI regulations, allowing stakeholders to access detailed insights into its financial performance and strategic direction.

Newgen Software Approves Financial Results and Increases Share Capital

Newgen Software Technologies Limited announced the approval of its unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025. Additionally, the company issued and allotted a total of 639,000 equity shares under its ESOP schemes, resulting in an increase in the paid-up share capital from Rs.1,41,67,87,870 to Rs.1,42,31,77,870. This move is expected to enhance employee engagement and align their interests with the company’s growth, potentially impacting its market positioning and stakeholder value.

Newgen Software Expands Equity Base with ESOP Allotment

Newgen Software Technologies Limited announced the allotment of 639,000 equity shares under its ESOP schemes at a recent board meeting. This issuance, which includes 539,000 shares under the 2022 ESOP scheme and 100,000 shares under the 2014 ESOP scheme, increases the company’s paid-up share capital to Rs. 1,42,31,77,870. This move is expected to bolster employee engagement and align their interests with the company’s growth, potentially enhancing its market position.

Newgen Software Announces Mumbai Road Show for Stakeholder Engagement

Newgen Software Technologies Limited has announced its participation in a ‘Non-Deal Road Show’ scheduled from October 29 to October 31, 2025, in Mumbai. This initiative aims to facilitate one-on-one meetings with stakeholders, where the company will discuss its Q2 FY’26 results presentation, potentially impacting investor relations and market perception.

Newgen Software Expands into Caribbean Market with Major Agreement

Newgen Software Inc., a subsidiary of Newgen Software Technologies Limited, has secured a Master Service Agreement with a leading Caribbean bank to supply, install, and implement its Enterprise Content Management System Platform. This agreement, valued at $1,637,400, signifies a strategic expansion into the Caribbean market, potentially enhancing Newgen’s international footprint and offering significant growth opportunities for the company.

Newgen Software Secures Major Contract with Wipro Financial Outsourcing

Newgen Software Technologies (UK) Limited, a subsidiary of Newgen Software Technologies Limited, has signed a significant agreement with Wipro Financial Outsourcing Services Limited for software license, implementation, and maintenance services valued at £2,985,484. This international contract, set to be executed over ten years, underscores Newgen’s strategic positioning in the global market, enhancing its footprint in enterprise content and customer communication management solutions.