Newgen Software Technologies Ltd logo

Newgen Software Technologies Ltd

NEWGEN NSE

Newgen Software Technologies is a global software Company and is engaged in the business of software product development including designing and delivering end-to-end software solutions covering the entire spectrum of software services from workflow automation to Document management to imaging.

AI Verdict: BUY Confidence: 7%

Newgen Software offers a compelling growth story with 21% profit CAGR over 5 years, near-zero debt, and consistent 20%+ ROE, trading at a reasonable PE of 24.5x for an IT product company. However, the sharp 58% stock correction in the last year and deteriorating working capital cycle warrant caution on entry timing.

Key Fundamentals

MicrocapComputer Software & ConsultingInformation Technology
Market Cap
₹6,767 Cr
Volatility
Moderate
P/E Ratio
22.36
EBITDA
₹362 Cr
Return on Equity
20.56%
Debt to Equity
0.04
Book Value
₹124.81
EPS
₹19.17
52W High
₹1,237.4
52W Low
₹401.05

Technical Indicators

Key Insights

Strengths

4
  • Company has reduced debt.
  • Company is almost debt free.
  • Company has delivered good profit growth of 21.4% CAGR over last 5 years
  • Company has been maintaining a healthy dividend payout of 24.2%

Weaknesses

2
  • Company has high debtors of 164 days.
  • Working capital days have increased from 123 days to 244 days

Growth Rate

Revenue Growth
1.54% ↘
Net Income Growth
-11.55% ↘
Cash Flow Change
-23.61% ↘
ROE
1.12% ↘
ROCE
6.86% ↘
EBITDA Margin (Avg.)
-22.14% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 20d ago
BUY
Risk medium

Newgen Software offers a compelling growth story with 21% profit CAGR over 5 years, near-zero debt, and consistent 20%+ ROE, trading at a reasonable PE of 24.5x for an IT product company. However, the sharp 58% stock correction in the last year and deteriorating working capital cycle warrant caution on entry timing.

Bull Case 8
  • Debt-free balance sheet provides financial flexibility and resilience against interest rate cycles
  • Consistent ROE of 20-22% over the last 10 years demonstrates strong capital efficiency and durable competitive advantage
  • Compounded profit growth of 21% CAGR over 5 years significantly outpaces revenue growth, indicating improving margins
  • PE of 24.5x is attractive for an IT product company with 20%+ ROE and consistent double-digit growth profile
  • 71.43% of analysts rate it a BUY with zero SELL ratings out of 7 covering analysts
  • Compounded sales growth of 19% over 5 years and 16% over 10 years shows sustained demand for its enterprise platforms
  • Healthy dividend payout of 24.2% with 1.16% yield provides income alongside growth, rare for mid-cap IT companies
  • Company has actively reduced debt, improving balance sheet quality and lowering financial risk
Bear Case 8
  • Stock has declined 58% over the last 1 year, indicating severe negative sentiment and possible de-rating by the market
  • Working capital days have nearly doubled from 123 days to 244 days, signaling cash flow stress and potential collection issues
  • High debtor days of 164 days suggest clients are delaying payments, creating receivable risk and cash conversion concerns
  • TTM sales growth has decelerated sharply to just 6% compared to 17% 3-year CAGR, indicating a potential growth slowdown
  • TTM profit growth of only 8% versus 24% 3-year CAGR suggests margin expansion may have peaked
  • Market cap of Rs 7,030 Cr with slowing growth may face further multiple compression if deceleration continues
  • Price-to-book of 4.14x leaves limited margin of safety if ROE trends below 20% in coming quarters
  • 28.57% of analysts have a HOLD rating, reflecting uncertainty about near-term catalysts

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 20d ago
Positives 2
  • GBP 1.13M UK ECM contract May 7

    UK subsidiary secured a £1,125,608 (₹14.47 Cr) contract for Enterprise Content Management platform services over 3.5 years, reinforcing international revenue pipeline.

  • Q4 FY26 revenue up 6% YoY May 6

    Q4 FY26 revenue reached INR 1,574 crore with 62% annuity revenue mix and 13% order book growth, signaling steady recurring income and healthy deal momentum.

Neutral 2
  • ICICI investor conference attendance Jun 3

    Newgen will participate in the ICICI Securities India Investor Conference on June 9, 2026, holding one-on-one and group meetings with investors and analysts in Mumbai.

  • No promoter share encumbrance FY26 Jun 2

    Promoter T.S. Varadarajan declared zero encumbrance on equity shares during FY26, filed with BSE and NSE under SEBI regulations.

TL;DR: Newgen Software shows steady execution with 6% YoY revenue growth, a strong 62% annuity mix, and continued international expansion via a new UK contract. No material headwinds are visible in recent news. Promoter governance remains clean with no share pledging. The trend is stable-to-positive, with order book growth of 13% suggesting improving revenue visibility heading into FY27.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
305
252
293
324
375
315
361
381
430
321
401
400
453
Expenses
209
220
236
247
253
267
278
273
293
276
298
294
301
Operating Profit
96
32
57
77
123
48
83
108
137
45
102
106
152
OPM %
32%
13%
20%
24%
33%
15%
23%
28%
32%
14%
26%
27%
34%
Other Income
8
13
9
11
15
23
19
8
14
29
13
-15
-4
Interest
1
1
1
1
1
1
1
1
1
1
1
2
1
Depreciation
7
7
7
7
7
8
8
9
9
9
9
9
9
PBT
96
37
59
80
129
61
93
107
141
64
105
80
138
Tax %
17%
18%
18%
15%
18%
23%
24%
17%
23%
22%
22%
22%
23%
Net Profit
80
30
48
68
105
48
70
89
108
50
82
63
106
EPS in Rs
5.71
2.16
3.41
4.88
7.5
3.39
5.01
6.34
7.65
3.51
5.77
4.41
7.47
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
308
347
427
512
621
661
673
779
974
1,244
1,487
1,574
Expenses
251
307
357
415
493
556
480
584
762
956
1,111
1,169
Operating Profit
58
39
70
98
128
105
192
195
212
288
376
406
OPM %
19%
11%
16%
19%
21%
16%
29%
25%
22%
23%
25%
26%
Other Income
8
3
8
8
20
21
15
30
34
48
64
24
Interest
2
4
5
5
9
11
6
3
4
4
5
5
Depreciation
4
4
5
6
6
20
20
18
25
28
33
37
PBT
59
34
68
94
134
95
181
203
217
304
402
387
Tax %
21%
19%
25%
23%
23%
23%
30%
19%
19%
17%
22%
22%
Net Profit
46
28
51
73
102
73
126
164
176
252
315
301
EPS in Rs
4.29
2.58
3.99
5.26
7.34
5.2
9.03
11.73
12.59
17.93
22.26
21.12
Div. Payout %
14%
29%
18%
19%
20%
19%
19%
19%
20%
22%
22%
28%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
53
53
62
68
68
69
69
70
70
140
140
141
Reserves
148
166
188
337
428
480
596
742
907
1,084
1,376
1,636
Borrowings
55
69
71
66
68
76
20
28
43
49
53
39
Other Liabilities
68
101
106
138
177
245
235
264
319
414
475
626
Total Liabilities
324
389
427
609
742
871
921
1,103
1,339
1,686
2,045
2,442
Fixed Assets
23
57
62
68
69
130
205
230
245
248
259
239
CWIP
5
6
11
17
83
91
0
0
0
3
0
1
Investments
60
45
49
50
52
76
83
92
131
365
508
703
Other Assets
236
281
306
474
539
574
632
781
963
1,070
1,278
1,499
Total Assets
324
389
427
609
742
871
921
1,103
1,339
1,686
2,045
2,442
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
9
11
36
60
102
90
216
143
136
281
215
232
Investing
-9
-6
-5
-17
-85
-100
-142
-79
-88
-217
-168
-162
Financing
-6
-1
-21
68
-5
-47
-102
-32
-44
-47
-68
-87
Net Cash Flow
-6
5
11
111
12
-58
-28
32
4
17
-21
-18
Free Cash Flow
-1
-11
29
41
30
46
204
130
120
268
192
223
CFO/OP
38
70
75
84
100
117
129
98
83
117
76
86
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
208
216
171
158
149
149
129
131
145
130
137
164
Cash Conversion Cycle
208
216
171
158
149
149
129
131
145
130
137
164
Working Capital Days
104
108
74
79
63
47
61
65
72
54
72
244
ROCE %
—
14%
22%
25%
27%
18%
28%
27%
24%
27%
28%
26%

Shareholding Pattern

As of Mar 2026
Promoters 53.52%
Public 18.27%
FIIs 14.48%
DIIs 8.85%
Others 4.88%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Jan 2024Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
65.73%
55.16%
55.16%
55.16%
55.16%
55.16%
55.16%
55.16%
55.16%
55.16%
55.16%
55.07%
55.07%
55.01%
54.30%
54.30%
54.30%
53.78%
53.78%
53.76%
53.52%
53.52%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
16.40%
17.84%
19.98%
20.31%
19.36%
19.14%
17.63%
17.34%
14.48%
DIIs
3.74%
4.15%
4.16%
4.67%
4.62%
3.99%
6.13%
8.11%
8.22%
8.27%
3.50%
3.89%
3.89%
9.71%
9.96%
8.93%
9.10%
9.13%
9.46%
9.58%
9.68%
8.85%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
9.95%
13.03%
15.87%
16.09%
17.40%
19.26%
17.75%
18.70%
17.83%
16.59%
15.00%
14.87%
15.07%
14.12%
13.51%
12.65%
12.49%
12.99%
13.10%
14.61%
14.62%
18.27%
Others
20.59%
27.66%
24.81%
24.09%
22.82%
21.59%
20.96%
18.03%
18.80%
19.99%
26.33%
26.18%
25.97%
4.76%
4.39%
4.14%
3.81%
4.74%
4.52%
4.42%
4.84%
4.88%
No. of Shareholders
28,083
41,716
80,420
78,215
97,523
1,03,628
1,04,804
1,00,071
94,786
87,579
89,181
99,306
1,07,932
1,13,594
1,11,135
1,12,542
1,26,410
1,49,297
1,47,452
1,65,772
1,63,917
1,93,680

Documents

Frequently Asked Questions about Newgen Software Technologies Ltd

What does Newgen Software Technologies Ltd do?
Newgen Software Technologies is a global software Company and is engaged in the business of software product development including designing and delivering end-to-end software solutions covering the entire spectrum of software services from workflow automation to Document management to imaging.
Where is Newgen Software Technologies Ltd (NEWGEN) listed?
Newgen Software Technologies Ltd is listed on the Indian stock exchanges. It is listed on NSE: NEWGEN and BSE: 540900. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Newgen Software Technologies Ltd belong to?
Newgen Software Technologies Ltd operates in the Information Technology sector within the IT - Software industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Newgen Software Technologies Ltd?
Newgen Software Technologies Ltd has a market capitalisation of approximately ₹6767.21 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of Newgen Software Technologies Ltd?
The Price-to-Earnings (PE) ratio of Newgen Software Technologies Ltd is 22.36. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Newgen Software Technologies Ltd?
Over the past 52 weeks, Newgen Software Technologies Ltd has traded between a low of ₹401.05 and a high of ₹1,237.4. This range helps investors understand the stock's price volatility and recent trading levels.
Does Newgen Software Technologies Ltd pay dividends?
Yes, Newgen Software Technologies Ltd has a dividend yield of 1.27%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Newgen Software Technologies Ltd?
Newgen Software Technologies Ltd has a Return on Equity (ROE) of 20.56%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Newgen Software Technologies Ltd on Tapetide?
On Tapetide, you can view Newgen Software Technologies Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Newgen Software Technologies is a global software Company and is engaged in the business of software product development including designing and delivering end-to-end software solutions covering the entire spectrum of software services from workflow automation to Document management to imaging.

Website newgensoft.com
CEO Mr. Diwakar Nigam
Employees 4,040
Listed 2018-01-29
Face Value ₹ 10
Issued Size 14,23,17,787

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