Recent Price Movement and Market Context
On 13 Feb 2026, Newgen Software Technologies Ltd’s stock touched an intraday low of Rs.476.05, representing a 6.3% drop on the day and a 5.56% decline compared to the previous close. This marks the lowest price level for the stock in the past 52 weeks, a notable milestone that underscores the recent downward momentum. The stock has been on a consecutive four-day losing streak, cumulatively falling by 14.65% during this period.
In comparison, the IT - Software sector declined by 3.09% on the same day, indicating that Newgen Software’s underperformance is more pronounced than its peers. The stock also underperformed its sector by 2.01% on the day, trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish sentiment.
The broader market environment was also subdued, with the Sensex opening 772.19 points lower and trading at 82,866.21, down 0.97%. Despite this, the Sensex remains within 3.97% of its 52-week high of 86,159.02, suggesting that the market overall has not experienced a comparable decline to Newgen Software’s share price.
Long-Term Performance and Valuation Metrics
Over the last year, Newgen Software Technologies Ltd’s stock has delivered a negative return of 51.03%, a stark contrast to the Sensex’s positive 8.84% gain and the BSE500’s 11.22% rise. This significant underperformance highlights the stock’s relative weakness within the broader market context.
The stock’s 52-week high was Rs.1,379.15, indicating a substantial decline from its peak to the current low. Despite this, the company maintains a relatively attractive valuation with a Price to Book Value ratio of 4.5, which is lower than the average historical valuations of its peers in the Computers - Software & Consulting sector.
Newgen Software’s PEG ratio stands at 5.1, reflecting the relationship between its price-to-earnings ratio and earnings growth rate. While profits have increased by 5.8% over the past year, this growth has not translated into positive stock returns, suggesting valuation concerns among market participants.
While markets shift, this one's charging ahead! This Micro Cap from Aquaculture shows the strongest momentum signals in current conditions. Don't miss out on this ride!
- - Strongest current momentum
- - Market-cycle outperformer
- - Aquaculture sector strength
Financial Performance and Growth Trends
Newgen Software Technologies Ltd has exhibited modest growth in operating profit, with an annualised rate of 17.71% over the past five years. However, the company reported flat results in the quarter ending December 2025, which may have contributed to the recent share price pressure.
Despite the subdued stock performance, the company demonstrates strong management efficiency, reflected in a high Return on Equity (ROE) of 20.46%. This level of profitability indicates effective utilisation of shareholder capital.
Additionally, the company maintains a low average Debt to Equity ratio of zero, signalling a conservative capital structure with minimal reliance on debt financing. This financial prudence may provide some stability amid market volatility.
Institutional Holdings and Market Perception
Institutional investors hold a significant stake in Newgen Software Technologies Ltd, accounting for 27.02% of the shareholding. These investors typically possess greater analytical resources and may have a longer-term perspective on the company’s fundamentals.
Nevertheless, the stock’s Mojo Score currently stands at 44.0, with a Mojo Grade of Sell as of 5 Jan 2026, downgraded from a previous Hold rating. This reflects a cautious stance based on the company’s recent performance and outlook within the Computers - Software & Consulting sector.
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
Sectoral and Market Comparisons
The Computers - Software & Consulting sector has experienced a decline of 3.09% on the day Newgen Software hit its 52-week low, indicating sector-wide pressures. However, Newgen’s sharper decline relative to the sector suggests company-specific factors are also at play.
While the Sensex is trading below its 50-day moving average, it remains above its 200-day moving average, signalling mixed market momentum. In contrast, Newgen Software’s share price is below all major moving averages, highlighting a more pronounced downtrend.
The stock’s market capitalisation grade is rated 3, reflecting its small-cap status within the broader market. This classification often entails higher volatility and sensitivity to market fluctuations.
Summary of Key Metrics
To summarise, Newgen Software Technologies Ltd’s stock has declined to Rs.476.05, its lowest level in 52 weeks, following a series of negative returns and underperformance relative to the sector and benchmark indices. The company’s financial profile includes a strong ROE of 20.46%, zero average debt, and modest profit growth of 5.8% over the past year. Despite these positives, the stock’s valuation metrics and recent flat quarterly results have weighed on investor sentiment.
Institutional ownership remains significant at 27.02%, while the Mojo Grade downgrade to Sell reflects a cautious market view. The broader IT sector and market indices have also experienced some weakness, though not to the extent seen in Newgen Software’s share price.
Unlock special upgrade rates for a limited period. Start Saving Now →
