Newgen Software

Why is Newgen Software Technologies Ltd falling/rising?

As of 30-Jul, Newgen Software Technologies Ltd's stock is declining by 1.15% after a trend reversal, despite recent short-term gains. Long-term underperformance, poor growth metrics, and reliance on non-operating income contribute to this decline.

As of 30-Jul, Newgen Software Technologies Ltd's stock price is currently falling, with a change of -6.45, representing a decline of 1.15%. This decline follows a trend reversal after three consecutive days of gains. Despite a strong performance over the past week and month, where the stock rose by 8.48% and 17.41% respectively, it has significantly underperformed over the longer term, with a year-to-date decline of 34.39% and a one-year drop of 35.09%. <BR><BR>Today's performance indicates that the stock underperformed its sector by 1.51%. Additionally, while the stock touched an intraday high of Rs 571.5 earlier in the day, it ultimately closed lower. The moving averages indicate that the stock is currently above the 5-day, 20-day, 50-day, and 100-day averages but below the 200-day average, suggesting a potential weakness in the longer-term trend.<BR><BR>Factors contributing to the stock's decline include poor long-term growth, as evidenced by an operating profit growth rate of only 16.03% over the past five years, and flat results reported in the latest quarter. The company's return on capital employed (ROCE) is at its lowest, and a significant portion of profit before tax is derived from non-operating income. Furthermore, the stock has underperformed the broader market, which has generated positive returns over the past year, contrasting sharply with Newgen's negative performance. These elements collectively indicate why the stock is currently experiencing a decline.

Which are the latest news on Newgen Software?

Should I buy, sell or hold Newgen Software Technologies Ltd?

Are Newgen Software Technologies Ltd latest results good or bad?

Newgen Software Technologies Ltd's latest results show year-on-year growth in revenue (11.23%) and net profit (26.35%), but significant sequential declines in both revenue (21.21%) and net profit (40.90%) raise concerns about profitability and sustainability. Investors should monitor upcoming quarters closely due to these mixed signals and recent stock performance.

Newgen Software Technologies Ltd's latest results present a mixed picture. On one hand, the company has shown year-on-year growth in both revenue and net profit, with revenue increasing by 11.23% and net profit rising by 26.35% compared to the same quarter last year. This indicates some underlying strength in the business.<BR><BR>However, the quarterly performance for Q1 FY27 has raised concerns. There was a significant sequential decline in both revenue and net profit, with revenue dropping by 21.21% and net profit falling by 40.90% compared to the previous quarter. Additionally, operating margins have compressed sharply, which suggests challenges in maintaining profitability.<BR><BR>The company is also facing issues related to high dependence on non-operating income, which accounted for a substantial portion of profit before tax. This raises questions about the sustainability of its earnings.<BR><BR>Overall, while there are positive year-on-year growth metrics, the sharp sequential declines and margin pressures indicate that the latest results could be viewed as concerning, particularly in light of the company's recent stock performance, which has seen a significant decline over the past year. Investors may need to monitor upcoming quarters closely to assess whether these trends continue.

What does Newgen Software do?

Newgen Software Technologies Ltd is a small-cap company in the software and consulting industry, reporting net sales of ₹453 Cr and a net profit of ₹106 Cr for March 2026. It has a market cap of ₹6,880 Cr, a P/E ratio of 20, and a dividend yield of 1.02%.

Overview:<BR>Newgen Software Technologies Ltd is a company operating in the Computers - Software & Consulting industry, categorized as a Small Cap entity.<BR><BR>History:<BR>Newgen Software Technologies Ltd was incorporated in 1992 as a Private Limited Company and became a deemed Public Limited Company in 1997. The company changed its name to Newgen Software Technologies Limited in 2000. The latest quarterly results report net sales and profit for March 2026.<BR><BR>Financial Snapshot:<BR>- Net Sales: 453 Cr (Quarterly Results - Mar 2026)<BR>- Net Profit: 106 Cr (Quarterly Results - Mar 2026)<BR>- Market cap: INR 6,880 Cr (Small Cap)<BR><BR>Key Metrics:<BR>- P/E: 20.00<BR>- Industry P/E: 20<BR>- Dividend Yield: 1.02%<BR>- Debt Equity: -0.61<BR>- Return on Equity: 18.82%<BR>- Price to Book: 3.90<BR><BR>Contact Details:<BR>Address: A-6 Satsung Vikar Marg, Qutab Institutional Area New Delhi New Delhi : 110067<BR>Tel: 91-11-40770100/26963571/26964733<BR>Email: corpmktg@newgensoft.com<BR>Website: http://www.newgensoft.com

How big is Newgen Software?

As of 10th June, Newgen Software Technologies Ltd has a market capitalization of 6,880.00 Cr, with recent net sales of 1,574.40 Cr and a net profit of 300.58 Cr over the latest four quarters.

As of 10th June, <BR><BR>Market Cap: Newgen Software Technologies Ltd has a market capitalization of 6,880.00 Cr, categorizing it as a Small Cap company.<BR><BR>Recent Quarterly Performance: The sum of Net Sales for the latest 4 quarters is 1,574.40 Cr, while the sum of Net Profit for the same period is 300.58 Cr.<BR><BR>Balance Sheet Snapshot: The reporting period for the latest annual data is March 2025. Shareholder's Funds are valued at 1,516.43 Cr, and Total Assets amount to 2,023.73 Cr.

Who are in the management team of Newgen Software?

The management team of Newgen Software includes Diwakar Nigam (Chairman & Managing Director), T S Varadarajan, Priyadarshini Nigam (both Whole-time Directors), and several Independent Directors: Kaushik Dutta, Saurabh Srivastava, Subramaniam Ramnath Iyer, and Padmaja Krishnan, along with Aman Mourya as Company Secretary & Compliance Officer. This team is responsible for the company's strategic direction and operations.

The management team of Newgen Software includes the following key members:<BR><BR>1. **Diwakar Nigam** - Chairman & Managing Director<BR>2. **T S Varadarajan** - Whole-time Director<BR>3. **Priyadarshini Nigam** - Whole-time Director<BR>4. **Kaushik Dutta** - Independent Director<BR>5. **Saurabh Srivastava** - Independent Director<BR>6. **Subramaniam Ramnath Iyer** - Independent Director<BR>7. **Aman Mourya** - Company Secretary & Compliance Officer<BR>8. **Padmaja Krishnan** - Independent Director<BR><BR>This team plays a crucial role in guiding the company's strategic direction and operations.

Who are the peers of the Newgen Software?

Newgen Software's peers include Rategain Travel, IDream Film, Birlasoft Ltd, AXISCADES Tech., Sonata Software, Latent View, Happiest Minds, Mastek, ASM Technologies, and Datamatics Glob. Newgen Software has below-average growth and the lowest 1-year return at -62.19% among its peers.

Peers: The peers of Newgen Software are Rategain Travel, IDream Film, Birlasoft Ltd, AXISCADES Tech., Sonata Software, Latent View, Happiest Minds, Mastek, ASM Technologies, and Datamatics Glob.<BR><BR>Quality Snapshot: Excellent management risk is observed at Sonata Software, while Good management risk is found at Birlasoft Ltd, AXISCADES Tech., Happiest Minds, and Mastek, and the rest have Average or lower ratings. Growth is Excellent for Rategain Travel and ASM Technologies, Good for AXISCADES Tech. and Sonata Software, while Below Average growth is noted for Newgen Software, Birlasoft Ltd, Happiest Minds, and Mastek, and the rest do not qualify or have Average growth. Excellent capital structure is seen in Rategain Travel, Birlasoft Ltd, Sonata Software, Newgen Software, Latent View, Happiest Minds, Mastek, and Datamatics Glob., while Good capital structure is found at AXISCADES Tech. and ASM Technologies, and the rest have Average ratings.<BR><BR>Return Snapshot: The peer with the highest 1-year return is IDream Film at 158.03%, while Newgen Software has the lowest at -62.19%. This indicates that Newgen Software's performance is significantly worse compared to its peers. Additionally, several peers, including Birlasoft Ltd, Sonata Software, Latent View, Happiest Minds, Mastek, and Datamatics Glob., have negative six-month returns.

When is the next results date for Newgen Software Technologies Ltd?

The next results date for Newgen Software Technologies Ltd is April 30, 2026.

The next results date for Newgen Software Technologies Ltd is scheduled for April 30, 2026.

Is Newgen Software technically bullish or bearish?

As of December 1, 2025, Newgen Software's trend is mildly bearish, indicated by bearish daily moving averages and Bollinger Bands, with mixed signals from the MACD and KST suggesting caution in the current market.

As of 1 December 2025, the technical trend has changed from bearish to mildly bearish. The current stance is mildly bearish, driven primarily by the daily moving averages indicating bearish momentum and the Bollinger Bands showing a bearish signal on both weekly and monthly time frames. The MACD is mildly bullish on the weekly but remains mildly bearish on the monthly, suggesting mixed signals. The KST aligns with this by being mildly bullish weekly but bearish monthly. Overall, the lack of strong bullish indicators and the prevailing bearish signals suggest caution in the current market environment for Newgen Software.

How has been the historical performance of Newgen Software?

Newgen Software has shown consistent financial growth, with net sales increasing from INR 660.76 crore in March 2020 to INR 1,486.88 crore in March 2025, alongside significant rises in operating profit, profit before tax, and total assets, while reducing total debt to zero. Overall, the company has demonstrated strong financial stability and growth over the years.

Answer:<BR>The historical performance of Newgen Software shows a consistent upward trend in key financial metrics over the years.<BR><BR>Breakdown:<BR>Newgen Software's net sales have increased significantly from INR 660.76 crore in March 2020 to INR 1,486.88 crore in March 2025, reflecting a strong growth trajectory. The total operating income followed a similar pattern, rising from INR 660.76 crore in March 2020 to INR 1,486.88 crore in March 2025. Operating profit, excluding other income, also saw a notable increase, reaching INR 376.20 crore in March 2025, up from INR 104.60 crore in March 2020. Profit before tax rose from INR 94.74 crore in March 2020 to INR 401.97 crore in March 2025, while profit after tax increased from INR 72.73 crore to INR 315.24 crore over the same period. The company's total assets grew from INR 848.42 crore in March 2020 to INR 2,023.73 crore in March 2025, indicating robust asset accumulation. Total liabilities also increased, from INR 848.42 crore in March 2020 to INR 2,023.73 crore in March 2025, although the company has reduced its total debt to zero by March 2025. Cash flow from operating activities improved from INR 90 crore in March 2020 to INR 214 crore in March 2025, although the net cash flow showed a decline in the most recent year, resulting in a closing cash balance of INR 103 crore in March 2025. Overall, Newgen Software has demonstrated strong financial growth and stability over the years.

Is Newgen Software overvalued or undervalued?

As of February 1, 2024, Newgen Software Technologies Ltd. is considered overvalued with a PE ratio of 55.41, significantly higher than industry peers, indicating that its current high valuation may not be sustainable despite recent strong performance.

As of 1 February 2024, Newgen Software Technologies Ltd. has moved from a fair valuation to a very expensive rating. The company is currently overvalued, with a PE ratio of 55.41, a Price to Book Value of 11.52, and an EV to EBITDA ratio of 44.12. These metrics indicate that the stock is trading at a significant premium compared to its earnings and book value.<BR><BR>In comparison to its peers, Newgen's valuation stands out, particularly when looking at its PE ratio of 55.41 against competitors in the industry, which typically exhibit lower valuations. For instance, if we consider similar companies, they generally have a PE ratio below 30, indicating that Newgen's valuation is not only higher but may also be unsustainable. Additionally, while the company has shown impressive returns over the past year, outperforming the Sensex with a 29.93% increase compared to the index's 7.55%, the current high valuation suggests that future growth may already be priced in.

Who are the top shareholders of the Newgen Software?

The top shareholders of Newgen Software include Tirumalai Sundaraja Iyengar Varadarajan with 22.37%, 19 mutual fund schemes holding 3.17%, 186 foreign institutional investors with 19.36%, and Marathon Edge India Fund I as the largest public shareholder at 5.44%. Individual investors collectively own 12.99% of the shares.

The top shareholders of Newgen Software include a mix of promoters, institutional investors, and individual shareholders. The promoter with the highest holding is Tirumalai Sundaraja Iyengar Varadarajan, who owns 22.37% of the company. Additionally, 19 mutual fund schemes collectively hold 3.17%, while 186 foreign institutional investors (FIIs) hold 19.36%. The highest public shareholder is Marathon Edge India Fund I, with a stake of 5.44%. Individual investors collectively hold 12.99% of the shares.

What is the bonus history of the Newgen Software?

Newgen Software has announced a 1:1 bonus issue effective January 12, 2024, meaning shareholders will receive one additional share for each share held. The record date for this bonus is also January 12, 2024.

Newgen Software has a recent bonus history that includes a 1:1 bonus issue, which is set to take effect on January 12, 2024. This means that for every share held, shareholders will receive an additional share. The record date for this bonus issue is also January 12, 2024, making it an important date for investors to note.

Has Newgen Software declared dividend?

Yes, Newgen Software Technologies Ltd has declared a 40% dividend, amounting to ₹4 per share, with an ex-date of July 18, 2024. Despite recent fluctuations, the company has shown strong total returns over various periods, particularly a 1559.58% total return over the past 5 years.

Newgen Software Technologies Ltd has declared a 40% dividend.<BR><BR>Dividend Details:<BR>- Percentage announced: 40%<BR>- Amount per share: 4 per share<BR>- Ex-date: 18 Jul 24<BR><BR>Dividend Yield: 0.32%.<BR><BR>Total Returns by Period:<BR>In the last 6 months, the price return was -8.59%, with a dividend return of 0%, resulting in a total return of -8.59%.<BR><BR>Over the past year, the price return was 38.84%, with a dividend return of 0.43%, leading to a total return of 39.27%.<BR><BR>In the 2-year period, the price return was 261.63%, accompanied by a dividend return of 2.78%, culminating in a total return of 264.41%.<BR><BR>For the 3-year period, the price return was 557.93%, with a dividend return of 5.02%, resulting in a total return of 562.95%.<BR><BR>In the last 4 years, the price return was 485.18%, with a dividend return of 5.92%, leading to a total return of 491.1%.<BR><BR>Over the past 5 years, the price return was 1533.85%, with a dividend return of 25.73%, resulting in a total return of 1559.58%.<BR><BR>Overall, Newgen Software has declared a significant dividend while also demonstrating strong total returns over longer periods, particularly in the 5-year span, indicating a positive performance trajectory despite recent fluctuations.