Check Before You Invest : Newgen Software Technologies Ltd

BSE: 540900 NSE: NEWGEN ISIN: INE619B01017

| Sector: IT & ITES | Industry: IT - Software

Snapshot

Q.1 Which industry/sub-sector does Newgen Software Technologies Ltd belong to?

Newgen Software Technologies Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Newgen Software Technologies Ltd a good quality company?

Newgen Software Technologies Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Newgen Software Technologies Ltd undervalued or overvalued?

Newgen Software Technologies Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Newgen Software Technologies Ltd a good buy now?

Newgen Software Technologies Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Newgen Software Technologies Ltd?

Newgen Software Technologies Ltd revenue growth is 19.2% for FY-2025, which is above its 5-year CAGR of 18.59%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Newgen Software Technologies Ltd?

Newgen Software Technologies Ltd Return on capital employed is 29.46% for FY-2025, which is above its 5-year historical median of 27.79%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Newgen Software Technologies Ltd?

Newgen Software Technologies Ltd Return on Asset is 16.29%, which is above its 5-year historical median of 14.8%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Newgen Software Technologies Ltd?

Newgen Software Technologies Ltd Return on equity is 23.93% for FY-2025, which is above its 5-year historical median of 22.42%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Newgen Software Technologies Ltd?

Newgen Software Technologies Ltd Cash conversion cycle is 57 days, below its 5-year historical median of 69 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.75	0.69
ROE	23.93	22.42
ROCE	29.46	27.79
Cash Conversion Cycle	57 days	69 days

Q.6 Gross Profit margin of Newgen Software Technologies Ltd?

Newgen Software Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 29.8% for FY-2025, which is in line with its 5-year median of 29.3%, indicating stable margins.

Q.7 Operating Profit Margin of Newgen Software Technologies Ltd?

Newgen Software Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 25.74% for FY-2025, which is in line with its 5-year median of 25.52% indicating stable margins.

Q.8 Net Profit Margin of Newgen Software Technologies Ltd?

Newgen Software Technologies Ltd Net Profit Margin is 21.65% for FY-2025, is in line with with its 5-year median of 20.89%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	29.8	29.3
Operating Profit Margin	25.74	25.52
Net Profit Margin	21.65	20.89

Q.9 Debt to Equity ratio of Newgen Software Technologies Ltd?

Newgen Software Technologies Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.11, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Newgen Software Technologies Ltd?

Newgen Software Technologies Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Newgen Software Technologies Ltd?

Promoters hold 53.52% of the Newgen Software Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Newgen Software Technologies Ltd vs industry peers?

Newgen Software Technologies Ltd revenue CAGR is 18.59%, compared to the industry median CAGR of 10.86%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	19.2	10.9
Gross Profit Growth	30.3	19
Operating Profit Growth	29.7	NAN
Net Profit Growth	23.6	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.75	0.5
ROE	23.93	5.83
ROCE	29.46	6.79
Cash Conversion Cycle (days)	57.07	47

Valuation & price assessment

Q.1 Stock return of Newgen Software Technologies Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 25.19% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	25.2%	22.4%	-49.7%

Q.3 Valuation ratios of Newgen Software Technologies Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	25.22	33.01	47.37
Price to Book	4.41	6.52	2.63
Price to Sales	5.07	6.52	4.79
EV to EBITDA	15.79	22.29	16.48

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