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Newgen Software Technologies Limited
(NEWGEN)
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Rating:74Outperform
Price Target:
₹496.00
▼(-1.91% Downside)
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
Balance Sheet Strength
Very low leverage gives Newgen substantial financial flexibility and limits interest-related pressure on earnings. Strong, stable ROE also indicates that profitability is not primarily dependent on borrowing, supporting resilience and the ability to fund expansion while preserving balance-sheet strength.
Negative Factors
Gross Margin Compression
The sharp 2026 gross-margin decline is a meaningful concern because it can reduce the profit captured from each unit of revenue. If sustained, weaker margins could limit operating leverage, constrain reinvestment capacity, and make future earnings more sensitive to pricing, mix, or delivery economics.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Very low leverage gives Newgen substantial financial flexibility and limits interest-related pressure on earnings. Strong, stable ROE also indicates that profitability is not primarily dependent on borrowing, supporting resilience and the ability to fund expansion while preserving balance-sheet strength.
Read all positive factors
Newgen Software Technologies Limited (NEWGEN) vs. iShares MSCI India ETF (INDA)
Market Cap
₹63.05B
Dividend Yield1.36%
Average Volume (3M)70.35K
Price to Earnings (P/E)19.6
Beta (1Y)1.22
Revenue Growth6.49%
EPS Growth-3.73%
CountryIN
Employees3,788
SectorGeneral
Sector StrengthN/A
IndustrySoftware - Application
Share Statistics
EPS (TTM)22.28
Shares Outstanding142,510,000
10 Day Avg. Volume73,840
30 Day Avg. Volume70,352
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
₹520.00Price Target Upside2.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)26.2
Revenue Forecast (FY)₹17.32B
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, ...
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 | 3.77B | 2.88B | 2.15B | 1.95B |
| Net Income | 3.14B | 3.01B | 3.15B | 2.52B | 1.77B | 1.64B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 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
491.29
Negative
501.11
Negative
505.37
Negative
Market Momentum
-8.66
Positive
37.40
Neutral
20.81
Neutral
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 above the 20-day moving average (MA) of 463.98, above the 50-day MA of 491.29, and above 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ₹63.05B | 19.58 | ― | 1.36% | 6.49% | -3.73% | |
73 Outperform | ₹236.14B | 35.23 | ― | 1.98% | 10.01% | -0.08% | |
69 Neutral | ₹16.94B | 16.30 | ― | 1.95% | 1.66% | -37.05% | |
65 Neutral | ₹28.25B | 24.11 | ― | 0.37% | 29.74% | 25.01% | |
60 Neutral | ₹70.88B | 19.90 | ― | 0.79% | 16.99% | -12.47% | |
57 Neutral | ₹19.08B | 64.91 | ― | ― | 10.73% | 236.66% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:NEWGEN
Newgen Software Technologies Limited
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-55.02%
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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 d...
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 effect...
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 a...
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.