Newgen Software Technologies Ltd
Ticker: NEWGEN
Decent
68/100
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Investing Reference
Price
887.00
Market Cap
12460.52
Debt/Equity
0.0353
ROE %
23.011
PB
8.2170
Promoter %
53.784
Pledge %
0.000
1Y Rev Growth %
20.015
5Y Rev Growth %
17.861
NP Margin %
20.333
NP Margin 5Y Avg %
19.198
Trading Reference
1M Return %
-4.265
6M Return %
-5.824
1Y Return %
-31.559
% Away 52W High
102.807
% Away 52W Low
16.988
Daily Volume
4867103
Investment Verdict
Hold
Score 66/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 24/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
AI Probability Statement
Probability Statement
Newgen Software Technologies Ltd is currently trading near a key support level, with recent price action showing bullish momentum as it approaches the 50-day EMA. If it breaks above the resistance level at 400, there is potential for upside. However, if it falls below the support at 350, downside risk increases significantly.
Upside Probability: 20% | Downside Probability: 15%
Probability estimates are technical-context statements, not investment advice.
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Business Overview
Newgen Software Technologies Ltd is a leading provider of software solutions that empower businesses to enhance their operational efficiency and streamline processes. Catering primarily to sectors like banking, insurance, and government, Newgen's innovative products enable organizations to automate workflows and improve customer experiences. With a strong focus on digital transformation, Newgen is pivotal for businesses aiming to stay competitive in a rapidly evolving market.
- Established leader in software solutions
- Focus on banking, insurance, and government sectors
- Enhances operational efficiency and productivity
- Supports digital transformation initiatives
- Innovative products for workflow automation
Investment Thesis
Newgen Software Technologies Ltd presents a compelling investment opportunity driven by a strong promoter group, robust growth in digital services, and attractive valuations compared to peers. This combination positions the company for sustained performance in the evolving tech landscape.
- Strong promoter credibility enhances investor confidence.
- Significant growth potential in digital transformation services.
- Attractive valuation metrics compared to industry peers.
- Established track record of innovation and customer satisfaction.
- Strategic positioning to capitalize on increasing IT spending.
Opportunity vs Risk
Opportunities
- Strong growth in digital transformation
- Expanding global client base
- Innovative product offerings
- Rising demand for automation solutions
Risks ⚠️
- Intense competition in tech sector
- Regulatory changes affecting operations
- Dependence on key clients
- Economic downturn impacting spending
Peer Perspective
Newgen Software Technologies Ltd trades at a discount to peers like Infosys and TCS, reflecting its growth potential. A sustained improvement in margins and consistent revenue growth could trigger a rerating in its valuation.
Future Outlook
Newgen Software Technologies Ltd is well-positioned for growth, driven by increasing demand for digital transformation solutions. Successful execution of its strategic initiatives and effective cost control will be crucial for maximizing shareholder value.
📊 Stock Investment Checklist (100 Points)
Newgen Software Technologies Ltd • Updated: 2025-09-17 04:07:00
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10BusinessHighThe software sector is growing, but competition is intense.
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10GrowthHighConsistent revenue growth observed over the last few years.
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10ProfitabilityHighROE and ROCE are decent, but OCF is fluctuating.
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8ValuationHighP/E ratio is higher than industry average, indicating overvaluation.
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7BalanceHighModerate debt levels with reasonable liquidity.
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6GovernanceGoodPromoter holding is strong, but some pledging exists.
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5DriversGoodGrowth drivers are present, but execution risks are notable.
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5TechnicalsGoodMarket sentiment is neutral with low liquidity.
Final Score & Verdict
Score 68 / 100
• Decent
Newgen Software Technologies Ltd shows potential for growth but faces challenges in valuation and execution risks.