Newgen Software Technologies Limited (NEWGEN) AI Stock Analysis

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Newgen Software Technologies Limited

(NSE:NEWGEN)

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Rating:74Outperform

Price Target:INR 496.00▲(12.10% Upside)

Action:reiterated

Date:08/29/26

The score is primarily supported by strong financial performance—especially a very strong balance sheet and sustained profitability—tempered by the 2026 gross margin compression and uneven cash-flow conversion. Technically, the stock shows improving momentum above key short/intermediate moving averages but remains below the 200-day average. Valuation is reasonable-to-premium (P/E ~25) with a modest dividend yield, which slightly limits upside in the score.

Positive Factors

Very low leverage and strong returnsMinimal leverage reduces financial risk and leaves more flexibility to fund operations, investment, or shareholder returns. Stable ROE in the high teens to low twenties also indicates that profitability is not primarily being created through borrowing, supporting durable financial quality.

Negative Factors

Sharp 2026 gross-margin compressionA sharp gross-margin decline can reduce the earnings produced by each unit of revenue and may weaken operating leverage if it persists. The change creates a durable concern around mix, pricing, or delivery economics until margins demonstrate that the deterioration was temporary.

Newgen Software Technologies Limited (NEWGEN) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 62.54B
Dividend Yield: 1.36%
Average Volume (3M): 82.16K
Price to Earnings (P/E): 19.6
Beta (1Y): 1.22
Revenue Growth: 6.49%
EPS Growth: -3.73%
Country: India
Employees: 3,788
Sector: General
Sector Strength: 55
Industry: Software - Application

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, Afr...

Newgen Software Technologies Limited Financial Statement Overview

Summary

Strong overall fundamentals driven by very low leverage and stable, high ROE (balance sheet strength), plus multi-year revenue expansion and healthy net margins. Offsets include a notable 2026 gross margin step-down and volatile cash conversion/free-cash-flow growth, which reduces confidence in near-term earnings quality and cash predictability.

Income Statement

78Positive

Balance Sheet

90Very Positive

Cash Flow

69Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	16.10B	15.74B	14.87B	12.44B	9.74B	7.79B
Gross Profit	6.14B	3.69B	7.46B	6.16B	4.58B	3.70B
EBITDA	4.47B	4.29B	3.77B	2.88B	2.15B	1.95B
Net Income	3.14B	3.01B	3.15B	2.52B	1.77B	1.64B
Balance Sheet
Total Assets	0	24.42B	20.47B	16.86B	13.42B	11.07B
Cash, Cash Equivalents and Short-Term Investments	11.14B	11.15B	9.24B	7.41B	3.40B	3.68B
Total Debt	0	393.56M	534.85M	485.07M	427.13M	278.23M
Total Liabilities	-17.77B	6.65B	5.29B	4.63B	3.62B	2.96B
Stockholders Equity	17.77B	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

Technical Analysis SentimentNegative

Last Price442.45

Price Trends

50DMA491.29Negative

100DMA501.11Negative

200DMA505.37Negative

Market Momentum

MACD-8.66Positive

RSI37.40Neutral

STOCH20.81Neutral

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 442.45 is below the 20-day moving average (MA) of 463.98, below the 50-day MA of 491.29, and below the 200-day MA of 505.37, indicating a bearish trend. The MACD of -8.66 indicates Positive momentum. The RSI at 37.40 is Neutral, neither overbought nor oversold. The STOCH value of 20.81 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

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:NEWGEN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:NEWGEN	74Outperform	INR 63.05B	19.58	―	1.36%	6.49%	-3.73%
IN:TATAELXSI	73Outperform	INR 236.14B	35.23	―	1.98%	10.01%	-0.08%
IN:EMUDHRA	65Neutral	INR 28.25B	24.11	―	0.37%	29.74%	25.01%
IN:NUCLEUS	63Neutral	INR 16.94B	16.30	―	1.95%	1.66%	-37.05%
IN:INTELLECT	60Neutral	INR 70.88B	19.90	―	0.79%	16.99%	-12.47%
IN:RAMCOSYS	57Neutral	INR 19.08B	64.91	―	―	10.73%	236.66%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IN:NEWGEN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:NEWGEN	Newgen Software Technologies Limited	442.45	-541.23	-55.02%
IN:EMUDHRA	eMudhra Limited	341.10	-297.80	-46.61%
IN:INTELLECT	Intellect Design Arena Ltd	504.60	-683.25	-57.52%
IN:NUCLEUS	Nucleus Software Exports Limited	643.45	-375.81	-36.87%
IN:RAMCOSYS	Ramco Systems Limited	507.10	-115.65	-18.57%
IN:TATAELXSI	Tata Elxsi Limited	3790.00	-1551.49	-29.05%

Newgen Software Technologies Limited Corporate Events

Newgen Software Plans Mumbai Non-Deal Roadshow to Brief Investors on Q2 FY27

Oct 21, 2026

Newgen Software Technologies Limited has announced that its management will conduct a non-deal roadshow in Mumbai from October 26 to October 28, 2026, holding one-on-one meetings with investors and other market participants. The company plans to disc...

Newgen Software Announces Retirement of EVP and Key Managerial Personnel

Oct 12, 2026

Newgen Software Technologies Limited has announced the retirement of Mr. Surender Jeet Raj, Executive Vice President for Global Business Strategy and HR, who was designated as a key managerial personnel of the company. His retirement became effective...

Newgen Says No Undisclosed Events Behind Surge in Share Volume

Aug 30, 2026

Newgen Software Technologies Limited has responded to a query from the National Stock Exchange of India regarding a significant increase in trading volume in its shares. The company stated that, to the best of management’s knowledge, there are...

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.

Date of analysis: Aug 29, 2026

Newgen Software Technologies Limited AI Stock Analysis

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