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Newgen Software Technologies Limited
(NEWGEN)
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Rating:74Outperform
Price Target:
₹635.00
▲(25.58% 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 returns
Minimal leverage limits financial risk and interest burden, while sustained high ROE indicates that profitability is supported by operating performance rather than debt. This provides flexibility to invest and withstand business volatility.
Negative Factors
Sharp gross margin compression
The margin step-down is a material quality-of-earnings risk because it may reflect unfavorable mix, pricing pressure, delivery costs or reporting inconsistency. If persistent, it could reduce operating leverage and limit the benefit of future revenue growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage and strong returns
Minimal leverage limits financial risk and interest burden, while sustained high ROE indicates that profitability is supported by operating performance rather than debt. This provides flexibility to invest and withstand business volatility.
Read all positive factors
Newgen Software Technologies Limited (NEWGEN) vs. iShares MSCI India ETF (INDA)
Market Cap
₹73.24B
Dividend Yield1.17%
Average Volume (3M)128.28K
Price to Earnings (P/E)23.0
Beta (1Y)1.27
Revenue Growth7.88%
EPS Growth-1.77%
CountryIN
Employees3,788
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)22.28
Shares Outstanding142,510,000
10 Day Avg. Volume140,984
30 Day Avg. Volume128,282
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
₹622.50Price Target Upside23.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)26.36
Revenue Forecast (FY)₹17.39B
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 enterprise software and associated services:
1) Software licensing and subscriptions: Revenue is generated from providing rights to use its software platforms/modules (e.g., content/document ...
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 | 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 | 3.60B | 2.74B | 2.02B | 1.87B |
| Net Income | 3.14B | 3.01B | 3.15B | 2.52B | 1.77B | 1.64B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 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 | 0.00 | 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
Negative
505.65
Price Trends
527.97
Negative
498.64
Positive
571.17
Negative
Market Momentum
-2.85
Positive
44.53
Neutral
9.60
Positive
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 505.65 is below the 20-day moving average (MA) of 528.62, below the 50-day MA of 527.97, and below the 200-day MA of 571.17, indicating a bearish trend. The MACD of -2.85 indicates Positive momentum. The RSI at 44.53 is Neutral, neither overbought nor oversold. The STOCH value of 9.60 is Positive, 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ₹73.24B | 23.02 | ― | 1.17% | 7.88% | -1.77% | |
73 Outperform | ₹18.86B | 17.63 | ― | 1.77% | 1.66% | -37.05% | |
70 Outperform | ₹42.17B | 36.28 | ― | 0.24% | 29.74% | 25.01% | |
70 Outperform | ₹217.49B | 32.19 | ― | 2.21% | 5.19% | -12.17% | |
62 Neutral | ₹97.10B | 27.02 | ― | 0.58% | 22.59% | -0.57% | |
56 Neutral | ₹22.94B | 53.76 | ― | ― | 15.71% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:NEWGEN
Newgen Software Technologies Limited
512.50
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-41.46%
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Newgen Software Technologies Limited Corporate Events
Newgen’s UAE Arm Wins Rs 26.7 Crore Kuwait Insurance Tech Contract
Jun 30, 2026
Newgen Software Technologies LLC, the wholly owned UAE subsidiary of Newgen Software Technologies Limited, has secured an international contract from a Kuwait-based customer to replace the client’s core insurance system. The mandate covers a...
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...
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.