Newgen Software Technologies Limited (IN:NEWGEN)
:NEWGEN
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Newgen Software Technologies Limited
(NEWGEN)
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Rating:65Neutral
Price Target:
₹499.00
▼(-40.57% Downside)
Action:Reiterated
Date:06/03/26
The score is driven primarily by strong fundamentals (profitability and a low-leverage balance sheet), partially offset by weaker cash-flow consistency and a 2026 gross-margin drop. Technical indicators are the main drag, signaling weak momentum and a broader downtrend despite a short-term rebound. Valuation is moderate with only a small dividend yield.
Positive Factors
Balance Sheet Health
Very low leverage and materially compounding equity, with ROE around 18%–21%, provide durable financial flexibility. Low debt reduces interest burden, supports sustained investment in product and sales, and gives optionality for M&A or downturns without stressing profitability.
Negative Factors
Gross-Margin Compression (2026)
A sharp 2026 gross-margin decline signals a structural threat to core profitability—potentially from pricing, mix or higher direct costs. Persistent margin erosion would reduce incremental profitability, weaken cash generation and limit capacity to fund growth without margin recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Health
Very low leverage and materially compounding equity, with ROE around 18%–21%, provide durable financial flexibility. Low debt reduces interest burden, supports sustained investment in product and sales, and gives optionality for M&A or downturns without stressing profitability.
Read all positive factors
Newgen Software Technologies Limited (NEWGEN) vs. iShares MSCI India ETF (INDA)
Market Cap
₹67.12B
Dividend Yield0.59%
Average Volume (3M)58.88K
Price to Earnings (P/E)22.1
Beta (1Y)1.15
Revenue Growth5.89%
EPS Growth-5.03%
CountryIN
Employees3,890
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)23.46
Shares Outstanding142,510,000
10 Day Avg. Volume33,269
30 Day Avg. Volume58,884
Financial Highlights & Ratios
PEG Ratio-3.69
Price to Book (P/B)3.18
Price to Sales (P/S)3.59
P/FCF Ratio22.33
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹610.00Price Target Upside-27.36% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)26.48
Revenue Forecast (FY)₹17.66B
Newgen Software Technologies Limited Business Overview & Revenue Model
Company Description
Newgen Software Technologies Limited, established in 1992 and headquartered in New Delhi, India, operates as a global provider of specialized software products and solutions. The company extends its services across India, Europe, the Middle East, ...
How the Company Makes Money
Newgen primarily makes money by selling and supporting its enterprise software products and related services. Key revenue streams typically include: (1) Software license/subscription revenue: fees paid by customers to use Newgen’s platform and sol...
Newgen Software Technologies Limited Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
69
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.32B | 15.74B | 14.87B | 12.44B | 9.74B | 7.79B |
| Gross Profit | 6.61B | 3.69B | 7.46B | 6.16B | 4.58B | 3.70B |
| EBITDA | 3.92B | 4.29B | 3.60B | 2.74B | 2.02B | 1.87B |
| Net Income | 3.29B | 3.01B | 3.15B | 2.52B | 1.77B | 1.64B |
Balance Sheet | ||||||
| Total Assets | 20.71B | 24.42B | 20.45B | 16.86B | 13.42B | 11.07B |
| Cash, Cash Equivalents and Short-Term Investments | 9.82B | 11.15B | 9.24B | 7.41B | 3.40B | 3.68B |
| Total Debt | 893.60M | 393.56M | 534.85M | 485.07M | 427.13M | 278.23M |
| Total Liabilities | 4.79B | 6.65B | 5.29B | 4.63B | 3.62B | 2.96B |
| Stockholders Equity | 15.93B | 17.77B | 15.16B | 12.24B | 9.77B | 8.11B |
Cash Flow | ||||||
| Free Cash Flow | 870.05M | 2.53B | 1.92B | 2.68B | 1.20B | 1.30B |
| Operating Cash Flow | 895.77M | 2.63B | 2.15B | 2.81B | 1.36B | 1.43B |
| Investing Cash Flow | -402.26M | -1.93B | -1.72B | -2.19B | -942.98M | -805.92M |
| Financing Cash Flow | -746.65M | -873.73M | -680.86M | -474.55M | -440.48M | -319.74M |
Newgen Software Technologies Limited Technical Analysis
Negative
839.70
Price Trends
474.23
Negative
484.21
Negative
677.54
Negative
Market Momentum
2.05
Positive
49.14
Neutral
33.70
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 476.72, above the 50-day MA of 474.23, and above the 200-day MA of 677.54, indicating a bearish trend. The MACD of 2.05 indicates Positive momentum. The RSI at 49.14 is Neutral, neither overbought nor oversold. The STOCH value of 33.70 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | ₹37.41B | 33.77 | ― | 0.21% | 35.08% | 26.95% | |
69 Neutral | ₹20.61B | 17.19 | ― | 1.34% | 5.26% | -27.92% | |
66 Neutral | ₹253.96B | 39.90 | ― | 1.38% | 0.76% | -19.95% | |
65 Neutral | ₹67.12B | 22.09 | ― | 0.59% | 5.89% | -5.03% | |
64 Neutral | ₹21.07B | 60.21 | ― | ― | 18.54% | ― | |
63 Neutral | ₹104.74B | 30.31 | ― | 0.69% | 21.53% | 3.38% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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Newgen Software Technologies Limited Corporate Events
Newgen to Engage Investors at ICICI Securities India Conference in Mumbai
Jun 3, 2026
Newgen Software Technologies has notified the stock exchanges that its officials will participate in the ICICI Securities India Investor Conference, themed “India Rising: The Next Chapter,” to be held in Mumbai on 9 June 2026. The comp...
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...
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.