Newgen Software Technologies Ltd.
NSE: NEWGENNewgen Software Technologies Ltd.: A 30-second snapshot
Newgen Software Technologies trades at ₹472.3, down 58.86% over the past 12 months and 65.54% below its 52-week high, with price 35% beneath the 200-DMA of ₹729.97. The company reports a trailing PE of 22.45x and a forward PE of 15.68x, ROE of 18.25%, profit margin of 19.09%, and D/E of 2.21 with a rising debt trend, against peers in the IT sector where median PE is approximately 16.6x and ROE leaders sit well above 30%.
P/E
22.5
Forward P/E
15.7
ROE
+18.3%
Debt / Equity
2.21
Profit Margin
+19.1%
Div. Yield
+1.3%
5Y ROE > 15%
4/5
5Y FCF > 0
4/5
Quality
58/100
News
8 headlines · 2 positive · 2 negative
Newgen Software Technologies Limited Just Missed EPS By 6.9%: Here's What Analysts Think Will Happen Next - simplywall.st
simplywall.st
Newgen Software Q4 Results: Shares rise up to 10% after US, APAC lead growth, margin expansion - CNBC TV18
CNBC TV18
Newgen Software Technologies' (NSE:NEWGEN) Soft Earnings Are Actually Better Than They Appear - simplywall.st
simplywall.st
Newgen Software Technologies - Smallcap Shock: 10 stocks crashed up to 45% in CY26 so far. Are you holding any? - The Economic Times
The Economic Times
Hold Newgen Software Technologies: target of Rs 530: ICICI Securities - Moneycontrol.com
Moneycontrol.com
Recent context
- ·Q4 FY26 results released 30 April 2026 showed US and APAC growth and margin expansion, prompting a single-session gain of up to 10%; however, the stock had declined 11.55% over the prior 3 months.
- ·An EPS miss of 6.9% for the most recent quarter was noted in analyst commentary from simplywall.st (3 May 2026), with debate over whether normalised earnings are better than reported.
- ·ICICI Securities carried a price target of ₹530 with a stated rating of Hold as of 5 May 2026, while the stock was trading near ₹472 — representing approximately 12% gap to that level.
Strengths
- +FCF was positive in 4 of 5 years measured, and the fundamental consistency score is 83 out of 100, suggesting relatively stable underlying cash generation.
- +Profit margin of 19.09% is a meaningful absolute level for a mid-cap IT software company, indicating some degree of operating leverage in the business model.
- +Q4 results saw shares rise up to 10% on the session as US and APAC segments led revenue growth alongside margin expansion, per CNBC TV18 reporting on 30 April 2026.
- +Forward PE of 15.68x is materially below the trailing PE of 22.45x, reflecting analyst expectations of earnings growth — the gap (forward vs trailing) is the widest among the reported metrics.
Weaknesses
- −Stock is 65.54% below its 52-week high and 35% below the 200-DMA of ₹729.97, a sustained and severe price deterioration placing it in bottom-decile technical territory.
- −5-year earnings CAGR of -0.9% contrasts with 5-year revenue CAGR of 5.3%, indicating that profitability has not scaled with topline growth over the measurement period.
- −D/E of 2.21 with a rising debt trend is substantially above IT-sector norms; peers TCS, Infosys, and HCL Tech operate with near-zero financial leverage.
- −PE of 22.45x ranks 5th of 6 in the peer set while ROE of 18.25% ranks 4th of 6, meaning the stock trades at a relative premium despite delivering below-median returns on equity versus peers.
Open questions
- ?Does the 83% fundamental consistency score and 4-of-5-year positive FCF reflect a durable competitive position in document and process automation, or a maturing product cycle with limited reinvestment returns?
- ?Given that 5-year earnings CAGR is -0.9% while revenue grew 5.3%, what structural factors (cost base, competition, pricing) have prevented operating leverage from materialising?
- ?The gap between trailing PE (22.45x) and forward PE (15.68x) is large — how credible are the consensus earnings estimates underpinning that forward multiple, given the recent 6.9% EPS miss?
- ?With D/E at 2.21 and rising debt, what is the company deploying capital toward — acquisitions, product development, or working-capital strain — and how does the return on that incremental capital compare to cost of debt?
Peer comparison: IT
Ranks 3 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| NEWGEN | Newgen Software Technologies Ltd.You're viewing | 22.5 | +18.3% | 53 |
| Industry avg | across 5 peers | 18.0 | +27.1% | 52 |
| INFY | Infosys Ltd. | 14.6 | +31.4% | 65 |
| TCS | Tata Consultancy Services Ltd. | 16.7 | +48.4% | 62 |
| TECHM | Tech Mahindra Ltd. | 25.3 | +16.6% | 46 |
| WIPRO | Wipro Ltd. | 15.2 | +15.5% | 46 |
| HCLTECH | HCL Technologies Ltd. | 18.4 | +23.4% | 40 |
Technical state
Current price
₹472.30
SMA 50
₹464.07
SMA 200
₹729.97
RSI (14)
47.8 (neutral)
From 52w high
-65.5%
1Y return
-58.9%
3M return
-11.6%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highStock is down 58.86% over 12 months and 65.54% below its 52-week high, trading at ₹472.3 against a 200-DMA of ₹729.97 — a 35% gap below the long-term moving average sustained over an extended period.
- high5-year earnings CAGR is -0.9% while revenue grew 5.3% CAGR over the same period, indicating that revenue scale has not translated into earnings expansion across the measurement window.
- mediumDebt-to-equity of 2.21 with a rising debt trend is elevated relative to IT-sector norms where large-cap peers such as TCS, Infosys, and HCL Tech carry minimal leverage.
- mediumNEWGEN ranks 5th of 6 peers on PE (22.45x vs sector median ~16.6x) and 4th of 6 on ROE (18.25% vs TCS 48.4%, INFY 31.4%), implying a valuation premium over better-capitalised peers.
- lowMost recent earnings saw EPS miss by 6.9% per analyst commentary; stock was cited in an Economic Times "smallcap crash" list as having declined up to 45% in CY26.
Cross-section contradictions
- FCF was positive in 4 of 5 years with a consistency score of 83%, yet the stock is 58.86% lower over 12 months and 35% below its 200-DMA — the fundamental stability and the price deterioration point in opposite directions.
- Forward PE of 15.68x implies the market prices in material earnings acceleration, while the realised 5-year earnings CAGR stands at -0.9% — these two signals are in tension.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days