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Newgen Software is having a moment. The stock jumped over 9 per cent today, hitting Rs 1,282 intraday, after the company announced a fresh international contract and a new patent. That's on top of a solid Q4 showing.
It's not a one-day story either. The stock is now up 25 per cent this month and has bounced nearly 67 per cent from its April low of Rs 740. Momentum is clearly on its side.
What's driving the rally?
Three things pushed the stock higher:
-
Big Saudi order:
Last week, Newgen's Saudi subsidiary landed a $1.63 million deal to implement a Centralised Trade Finance (CTF) solution. It covers everything from supply and integration to management and support over five years.
-
Patent win:
The Indian Patent Office just granted Newgen a patent for a data compression system. It's the kind of tech edge investors like to see.
- Earnings check: Newgen reported a Q4 FY25 net profit of Rs 108.3 crore, up 2.8 per cent YoY. Revenue rose, margins held steady, and the board recommended a Rs 5 final dividend. The company is also eyeing a deeper push into the US, which already makes up nearly a quarter of its revenue. The target? 50 per cent over the next few years.
What does Newgen do?
Newgen Software Technologies is a mid-cap tech firm offering low-code platforms, digital process automation, and document management solutions. Its clients include banks, insurers, governments, and healthcare companies. It operates across India, the US, and the Middle East.
Snapshot: Key financials
| Metric | Value |
|---|---|
| Market cap | Rs 17,808 cr |
| Revenue (TTM) | Rs 1,487 cr |
| Net profit (TTM) | Rs 315 cr |
| ROE | 23.5 per cent |
| ROCE | 27.9 per cent |
| P/E ratio | 56.5 |
| P/B ratio | 11.7 |
| Industry P/E | 32.36 |
| EV/EBITDA | 39.5 |
| Dividend yield | 0.4 per cent |
| Debt to equity | 0 |
| Book value | Rs 107.2 |
| EPS | Rs 22.4 |
Should investors take note?
Here's what stands out:
-
Strong order inflow and growing global footprint
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Clean balance sheet and consistent margins
- High valuation (P/E 56+) — not cheap
Value Research gives it 3/5 stars. Quality score: 10/10. Growth: 6/10. Valuation: 2/10. Momentum: 6/10.
Final word
Newgen's not just winning deals—it's executing. The Saudi contract and patent approval are timely wins in its push to scale globally. With strong financials and expanding margins, this is one tech stock that's not riding hype alone. If it delivers on the US expansion, the rally may have more legs.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
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