Stock Price Movement and Market Context
On 1 Feb 2026, Newgen Software Technologies Ltd’s share price dropped to Rs.570.5, representing a day decline of 1.42%. This fall extends a losing streak that has persisted for six consecutive trading sessions, during which the stock has shed 11.63% of its value. The stock’s performance today notably underperformed its sector peers by 2.27%, underscoring the pressure within the Computers - Software & Consulting industry segment.
The broader market environment has also been challenging. The Sensex, after opening 119.19 points higher, reversed sharply to close down 1,666.03 points or 1.88% at 80,722.94. The index is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating mixed technical signals. Additionally, the NIFTY FMCG index also hit a new 52-week low on the same day, reflecting sector-specific and market-wide headwinds.
Technical Indicators and Moving Averages
Newgen Software’s share price is currently trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning suggests sustained downward pressure and a lack of short-term momentum. The stock’s relative weakness compared to its historical price levels and moving averages highlights the challenges it faces in regaining investor confidence.
This week's revealed pick, a Large Cap from Public Banks with TARGET PRICE, is already showing movement! Get the complete analysis before it's too late.
- - Target price included
- - Early movement detected
- - Complete analysis ready
Long-Term Performance and Valuation Metrics
Over the past year, Newgen Software Technologies Ltd has recorded a total return of -45.42%, a stark contrast to the Sensex’s positive return of 5.16% during the same period. This underperformance is further emphasised when compared to the BSE500 index, which generated 5.79% returns over the last 12 months. The stock’s 52-week high of Rs.1,379.15 stands in sharp contrast to its current price, illustrating the extent of the decline.
Despite the share price weakness, the company’s operating profit has grown at an annualised rate of 17.71% over the last five years, indicating steady earnings growth. However, the December 2025 quarter results were largely flat, which may have contributed to the subdued market sentiment.
Financial Strength and Efficiency
Newgen Software Technologies Ltd maintains a strong financial profile with a low average debt-to-equity ratio of zero, signalling a debt-free balance sheet. The company’s return on equity (ROE) stands at a robust 20.46%, reflecting efficient capital utilisation and management effectiveness. The stock’s price-to-book value ratio is 5.2, which is considered fair relative to its peers, although it is currently trading at a discount compared to historical valuations within the sector.
Profit growth over the past year was recorded at 5.8%, while the company’s price/earnings to growth (PEG) ratio is elevated at 5.9, suggesting that the stock’s price decline has outpaced its earnings growth. Institutional investors hold a significant 27.02% stake in the company, indicating confidence from entities with substantial analytical resources.
Newgen Software Technologies Ltd or something better? Our SwitchER feature analyzes this small-cap Computers - Software & Consulting stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Recent Rating Changes and Market Sentiment
On 5 Jan 2026, the company’s Mojo Grade was downgraded from Hold to Sell, reflecting a reassessment of its medium-term prospects. The current Mojo Score stands at 41.0, which aligns with the Sell rating and indicates caution among market analysts. The Market Cap Grade is rated at 3, suggesting a moderate market capitalisation relative to peers.
The stock’s recent underperformance relative to the sector and broader market indices, combined with its technical weakness and rating downgrade, has contributed to the current price level. While the company’s financial metrics such as ROE and debt profile remain strong, the market appears to be pricing in a cautious outlook.
Summary of Key Data Points
To summarise, Newgen Software Technologies Ltd’s stock has reached a new 52-week low of Rs.570.5, down from a high of Rs.1,379.15 within the last year. The stock has declined by 45.42% over the past 12 months, significantly underperforming the Sensex and BSE500 indices. The company’s operating profit growth rate over five years is 17.71%, with a flat quarterly result in December 2025. Financially, the company exhibits a strong ROE of 20.46%, zero debt, and a price-to-book ratio of 5.2. Institutional holdings remain high at 27.02%, while the stock trades below all major moving averages and carries a Sell rating with a Mojo Score of 41.0.
The current market environment, combined with the stock’s technical and fundamental profile, has culminated in this significant price level, marking a notable point in the company’s share price trajectory.
Unlock special upgrade rates for a limited period. Start Saving Now →
