Newgen Software Technologies Limited (NEWGEN) AI Stock Analysis

• Market Cap: ₹124.67B
• Dividend Yield: 0.56%
• Average Volume (3M): 58.88K
• Price to Earnings (P/E): 38.4
• Beta (1Y): 0.82
• Revenue Growth: 14.23%
• EPS Growth: 17.64%
• Country: IN
• Employees: 3,890
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 3.52
• Shares Outstanding: 141,678,790
• 10 Day Avg. Volume: 33,269
• 30 Day Avg. Volume: 58,884
• PEG Ratio: 1.81
• Price to Book (P/B): 9.42
• Price to Sales (P/S): 9.61
• P/FCF Ratio: 74.55
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹835.00
• Price Target Upside: -6.40% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ₹986.00 ▲(10.53% Upside)

Newgen Software Technologies Limited demonstrates strong financial performance with robust revenue growth and profitability, which is the most significant factor in its overall score. However, technical indicators suggest a potential short-term bearish trend, and the valuation appears high, which could limit upside potential. The absence of earnings call data and notable corporate events means these factors do not influence the score.

Newgen Software Technologies Limited Business Overview & Revenue Model

Company Description

Newgen Software Technologies Limited, a software company, provides software products and solutions in India, Europe, the Middle East, Africa, the Asia Pacific, and the United States. The company offers enterprise content management software, which manages the end-to-end lifecycle of enterprise content from origination to disposition; business process management software to streamline enterprise-wide workflows with process automation suite; and customer communication management software delivers communications by tapping various cross-sell/up-sell opportunities across touch points, such as email, SMS, web, and print. It serves various industries, which include financial institutions, insurance, healthcare, government, telecom, shared services, business process outsourcing, and other industries. The company was incorporated in 1992 and is based in New Delhi, India.

How the Company Makes Money

Newgen Software generates revenue primarily through the sale of software licenses, subscription fees for its cloud-based services, and professional services related to implementation and customization of its solutions. The company's revenue model includes both one-time license fees for on-premise deployments and recurring revenue from cloud subscriptions. Additionally, Newgen earns income from maintenance and support services for its software products. Significant partnerships with various technology companies and consulting firms further enhance its market reach and contribute to its earnings. The growing demand for digital transformation and automation solutions across industries also plays a crucial role in driving the company's revenue growth.

Newgen Software Technologies Limited Financial Statement Overview

Summary

Newgen Software Technologies Limited demonstrates strong financial performance with robust revenue growth, healthy profitability, and stable financial management. The income statement highlights impressive growth and margins, while the balance sheet underscores financial stability with low leverage. Although the cash flow shows positive trends, monitoring of operating cash flow will be important.

Income Statement

Newgen Software Technologies Limited has demonstrated strong revenue growth over the years, with a notable increase from 2024 to 2025. The gross profit margin and net profit margin are healthy, indicating efficient cost management and profitability. The EBIT and EBITDA margins are also robust, suggesting strong operational performance. Overall, the income statement reflects a positive growth trajectory and strong profitability.

Balance Sheet

The company's balance sheet shows a strong equity position with a high equity ratio, indicating financial stability. The debt-to-equity ratio is low, reflecting prudent leverage management. Return on equity is impressive, demonstrating effective use of shareholder capital to generate profits. The company's financial health is stable with a low risk of over-leverage.

Cash Flow

Newgen Software Technologies Limited has shown a consistent ability to generate positive free cash flow, although there was a decrease in operating cash flow from 2024 to 2025. The free cash flow to net income ratio remains strong, indicating efficient cash generation relative to net income. However, the decline in operating cash flow warrants attention. Overall, the cash flow statement reflects good cash management with some areas for improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.93B	14.87B	12.44B	9.74B	7.79B	6.73B
Gross Profit	7.44B	7.46B	6.16B	4.58B	3.70B	3.45B
EBITDA	3.59B	3.60B	2.74B	2.02B	1.87B	1.81B
Net Income	3.17B	3.15B	2.52B	1.77B	1.64B	1.26B
Balance Sheet
Total Assets	0.00	20.45B	16.86B	13.42B	11.07B	9.21B
Cash, Cash Equivalents and Short-Term Investments	9.24B	9.24B	7.41B	3.40B	3.68B	3.25B
Total Debt	0.00	534.85M	485.07M	427.13M	278.23M	200.91M
Total Liabilities	-15.16B	5.29B	4.63B	3.62B	2.96B	2.55B
Stockholders Equity	15.16B	15.16B	12.24B	9.77B	8.11B	6.66B
Cash Flow
Free Cash Flow	0.00	1.92B	2.68B	1.20B	1.30B	2.04B
Operating Cash Flow	0.00	2.15B	2.81B	1.36B	1.43B	2.16B
Investing Cash Flow	0.00	-1.72B	-2.19B	-942.98M	-805.92M	-1.43B
Financing Cash Flow	0.00	-680.86M	-474.55M	-440.48M	-319.74M	-1.02B

Newgen Software Technologies Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 892.10
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NEWGEN, the sentiment is Positive. The current price of 892.1 is above the 20-day moving average (MA) of 881.83, above the 50-day MA of 885.26, and below the 200-day MA of 1040.92, indicating a neutral trend. The MACD of -1.81 indicates Negative momentum. The RSI at 52.62 is Neutral, neither overbought nor oversold. The STOCH value of 63.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:NEWGEN.

Newgen Software Technologies Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CYIENT	74 Outperform	₹132.81B	22.48	―	2.53%	1.68%	-12.95%
ZENSARTECH	73 Outperform	₹177.44B	26.37	―	1.61%	8.36%	0.83%
INTELLECT	70 Outperform	₹134.32B	37.96	―	0.72%	4.93%	15.12%
NEWGEN	69 Neutral	₹124.67B	38.42	―	0.56%	14.23%	17.64%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HFCL	61 Neutral	₹108.89B	390.89	―	0.13%	-19.16%	-92.64%
TEJASNET	54 Neutral	₹95.43B	―	―	0.46%	-17.23%	-185.73%

Newgen Software Technologies Limited Corporate Events

Newgen Software Announces Mumbai Road Show for Stakeholder Engagement

Newgen Software Technologies Limited has announced its participation in a ‘Non-Deal Road Show’ scheduled from October 29 to October 31, 2025, in Mumbai. This initiative aims to facilitate one-on-one meetings with stakeholders, where the company will discuss its Q2 FY’26 results presentation, potentially impacting investor relations and market perception.

Newgen Software Expands into Caribbean Market with Major Agreement

Newgen Software Inc., a subsidiary of Newgen Software Technologies Limited, has secured a Master Service Agreement with a leading Caribbean bank to supply, install, and implement its Enterprise Content Management System Platform. This agreement, valued at $1,637,400, signifies a strategic expansion into the Caribbean market, potentially enhancing Newgen’s international footprint and offering significant growth opportunities for the company.

Newgen Software Secures Major Contract with Wipro Financial Outsourcing

Newgen Software Technologies (UK) Limited, a subsidiary of Newgen Software Technologies Limited, has signed a significant agreement with Wipro Financial Outsourcing Services Limited for software license, implementation, and maintenance services valued at £2,985,484. This international contract, set to be executed over ten years, underscores Newgen’s strategic positioning in the global market, enhancing its footprint in enterprise content and customer communication management solutions.

Newgen Software’s AGM Resolutions Approved by Shareholders

Newgen Software Technologies Limited announced the voting results from its 33rd Annual General Meeting held on July 25, 2025. The resolutions presented at the meeting were approved by the requisite majority of members. This development signifies continued shareholder support and could positively impact the company’s strategic initiatives and market positioning.