Imagine investing in companies that create the apps we can’t live without, the gadgets that make our lives easier, and the software that powers our digital world. That’s the thrill of investing in the software and tech industry. But it also comes with a challenge: figuring out where those share prices are headed.
NewGen, like many tech companies, operates in an environment where the only constant is change. Their software solutions have the potential to transform industries, making them an attractive prospect for investors. However, the journey to predicting share prices in this dynamic sector is filled with challenges and opportunities.
In this article, we’ll navigate the world of share price predictions by examining the factors that influence NewGen’s stock performance. We’ll also aim to uncover whether NewGen’s shares have the potential to reach that magical ₹1,000 mark.
About Newgen Software Technologies
Newgen Software Technologies is a global software company that specializes in creating all-in-one software solutions, covering everything from workflow automation to document management and imaging.
In the fiscal year 2022, Newgen Software Technologies made a noteworthy acquisition. They acquired ‘Number Theory Software Private Limited,’ a company specializing in providing Artificial Intelligence (AI) platforms to various enterprises.
Newgen Software Technologies Limited, headquartered in New Delhi, India, is gaining prominence in the software development sector. With a global presence across 73 countries, the company focuses on delivering innovative software solutions that enhance operational efficiency for businesses.
Newgen serves over 530 active customers across seven countries, including the USA, Canada, UAE, Saudi Arabia, UK, Philippines, Indonesia, Singapore, and Australia. This global presence enables them to cater to diverse business needs.
Significant Deals:
- Collaborating with a multinational US automobile manufacturer for cloud-based solutions.
- Winning a bid to provide digital lending platform solutions and services to a leading public sector bank.
- Forming a strategic alliance with a private sector bank in India to enhance its digital capabilities.
Undertaking a project to support a top Indian private sector bank’s extensive network of banking outlets. - Expanding their presence in the UAE by securing additional business from the country’s largest bank.
Newgen Software Q3 Financial Highlights
- Profit Surge: Net profit for Q3 increased by 44% YoY, reaching Rs 68.3 crore.
- Revenue Growth: Recorded a substantial revenue of Rs 324 crore, marking a robust 27% growth from the same period last year.
- Stock Performance: The stock witnessed a remarkable surge, hitting a 52-week high at Rs 898.60, and a cumulative rise of 161.66% in the past six months.
- EBITA and Margin Improvement: EBITA rose by 35% sequentially, reaching Rs 77 crore. The margin showed significant improvement, increasing by 440 basis points to 23.8%, compared to 19.4% in Q2FY24.
- Positive Analyst Outlook: Jefferies raised the target price to Rs 1,740 and maintained a “buy” call, expressing confidence in Newgen’s growth prospects. The firm also increased revenue estimates by 2-3% and EPS estimates by 2-4%.
- Growth Drivers: Management projects a strong growth outlook, particularly in India and the Middle East markets. Increased deal sizes by around 40% in the past year attributed to robust demand, comprehensive solutions, and success in tapping into Tier-1 accounts
Recommended by Finances rule
| When | Maximum Price | Minimum Price |
| February 2024 | 911.52 | 792.63 |
| March 2024 | 930.12 | 808.80 |
| April 2024 | 903.03 | 785.24 |
| May 2024 | 889.69 | 773.64 |
| June 2024 | 921.71 | 801.49 |
| July 2024 | 912.50 | 793.48 |
| August 2024 | 949.00 | 825.22 |
| September 2024 | 986.96 | 858.22 |
| October 2024 | 967.61 | 841.40 |
| November 2024 | 996.63 | 866.64 |
| December 2024 | 1,021.55 | 888.30 |
As of February 2nd, 2024, Newgen Software Tech Ltd’s current share price stands at ₹844, with a market cap of ₹11,829 Cr. The stock exhibits a 52-week high/low range of ₹901/211 and a P/E ratio of 55.7.
Looking ahead, the share price targets for 2024 indicate a positive trajectory, with estimates ranging from ₹792.63 to ₹1,021.55 by December. The company’s robust financials, including a book value of ₹69.1, a dividend yield of 0.30%, an impressive ROCE of 24.0%, and an ROE of 20.0%, contribute to its promising outlook in the market.
| When | Maximum Price | Minimum Price |
| January 2025 | 1,041.98 | 801.52 |
| February 2025 | 1,068.70 | 822.08 |
| March 2025 | 1,110.38 | 854.14 |
| April 2025 | 1,088.61 | 837.39 |
| May 2025 | 1,056.90 | 813.00 |
| June 2025 | 1,104.46 | 849.58 |
| July 2025 | 1,082.80 | 832.92 |
| August 2025 | 1,116.29 | 858.69 |
| September 2025 | 1,155.36 | 888.74 |
| October 2025 | 1,185.40 | 911.85 |
| November 2025 | 1,215.04 | 934.64 |
| December 2025 | 1,245.41 | 958.01 |
In 2025, Newgen Software Tech’s share price is anticipated to show positive momentum, ranging from a minimum of ₹801.52 in January to a maximum of ₹1,245.41 in December, reflecting an upward trajectory and suggesting potential growth for investors.
| When | Maximum Price | Minimum Price |
| January 2026 | 1,282.77 | 986.75 |
| February 2026 | 1,315.67 | 1,012.05 |
| March 2026 | 1,366.98 | 1,051.52 |
| April 2026 | 1,340.17 | 1,030.90 |
| May 2026 | 1,301.14 | 1,000.88 |
| June 2026 | 1,359.69 | 1,045.92 |
| July 2026 | 1,333.03 | 1,025.41 |
| August 2026 | 1,374.26 | 1,057.12 |
| September 2026 | 1,422.36 | 1,094.12 |
| October 2026 | 1,459.34 | 1,122.57 |
| November 2026 | 1,495.82 | 1,150.63 |
| December 2026 | 1,533.22 | 1,179.40 |
In 2026, Newgen Software Tech’s share price is projected to exhibit growth, ranging from a minimum of ₹986.75 in January to a maximum of ₹1,533.22 in December.
| When | Maximum Price | Minimum Price |
| January 2027 | 1,563.88 | 1,202.99 |
| February 2027 | 1,603.98 | 1,233.83 |
| March 2027 | 1,666.54 | 1,281.95 |
| April 2027 | 1,633.86 | 1,256.81 |
| May 2027 | 1,586.27 | 1,220.21 |
| June 2027 | 1,657.65 | 1,275.12 |
| July 2027 | 1,625.15 | 1,250.12 |
| August 2027 | 1,675.41 | 1,288.78 |
| September 2027 | 1,734.05 | 1,333.89 |
| October 2027 | 1,779.14 | 1,368.57 |
| November 2027 | 1,823.62 | 1,402.78 |
| December 2027 | 1,869.21 | 1,437.85 |
| When | Maximum Price | Minimum Price |
| January 2028 | 1,906.59 | 1,466.61 |
| February 2028 | 1,955.48 | 1,504.21 |
| March 2028 | 2,031.74 | 1,562.88 |
| April 2028 | 1,991.90 | 1,532.23 |
| May 2028 | 1,933.89 | 1,487.60 |
| June 2028 | 2,020.91 | 1,554.55 |
| July 2028 | 1,981.28 | 1,524.07 |
| August 2028 | 2,042.56 | 1,571.20 |
| September 2028 | 2,114.05 | 1,626.19 |
| October 2028 | 2,169.02 | 1,668.47 |
| November 2028 | 2,223.24 | 1,710.19 |
| December 2028 | 2,278.82 | 1,752.94 |
| When | Maximum Price | Minimum Price |
| January 2029 | 2,324.40 | 1,788.00 |
| February 2029 | 2,384.00 | 1,833.85 |
| March 2029 | 2,476.98 | 1,905.37 |
| April 2029 | 2,428.41 | 1,868.01 |
| May 2029 | 2,357.68 | 1,813.60 |
| June 2029 | 2,463.77 | 1,895.21 |
| July 2029 | 2,415.46 | 1,858.05 |
| August 2029 | 2,490.17 | 1,915.51 |
| September 2029 | 2,577.32 | 1,982.56 |
| October 2029 | 2,644.33 | 2,034.10 |
| November 2029 | 2,710.44 | 2,084.96 |
| December 2029 | 2,778.20 | 2,137.08 |
| When | Maximum Price | Minimum Price |
| January 2030 | 2,833.77 | 2,179.82 |
| February 2030 | 2,906.43 | 2,235.71 |
| March 2030 | 3,019.78 | 2,322.91 |
| April 2030 | 2,960.57 | 2,277.36 |
| May 2030 | 2,874.34 | 2,211.03 |
| June 2030 | 3,003.68 | 2,310.53 |
| July 2030 | 2,944.79 | 2,265.22 |
| August 2030 | 3,035.86 | 2,335.28 |
| September 2030 | 3,142.12 | 2,417.01 |
| October 2030 | 3,223.81 | 2,479.86 |
| November 2030 | 3,304.41 | 2,541.85 |
| December 2030 | 3,387.02 | 2,605.40 |
Newgen Software Tech Financial Condition: Last 5 Years
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | |
| Sales + (In Crore INR) |
552 | 577 | 610 | 711 | 888 |
| Expenses + (In Crore INR) |
433 | 484 | 431 | 529 | 691 |
| Operating Profit (In Crore INR) |
119 | 94 | 180 | 181 | 197 |
| OPM % | 22% | 16% | 29% | 26% | 22% |
| Other Income + (In Crore INR) | 20 | 21 | 14 | 30 | 33 |
| Interest (In Crore INR) | 8 | 11 | 5 | 3 | 4 |
| Depreciation (In Crore INR) |
6 | 18 | 19 | 15 | 19 |
| Profit before tax (In Crore INR) |
125 | 86 | 170 | 193 | 207 |
| Tax % | 23% | 23% | 31% | 19% | 18% |
| Net Profit + (In Crore INR) |
96 | 66 | 118 | 156 | 170 |
| EPS in Rs | 13.77 | 9.42 | 16.8 | 22.29 | 24.28 |
| Dividend Payout % | 21% | 21% | 21% | 20% | 20% |
The overall analysis is :
- Sales have been steadily increasing over the years, reaching ₹888 million in March 2023, indicating healthy revenue growth.
- The OPM percentage fluctuated but remained above 20% throughout the period, suggesting consistent profitability in operations, although there was a dip in March 2020.
- Other income has increased from ₹20 million in March 2019 to ₹33 million in March 2023, indicating potential diversification of income sources.
- Net profit has grown consistently, reaching ₹170 million in March 2023, demonstrating the company’s ability to generate earnings.
- The company has maintained a stable dividend payout percentage, which is favorable for investors looking for consistent returns.
FAQs
The share price as of 2nd February 2024 is Rs. 844.
The share price target for 2025, based on the data, ranges from ₹801.52 (minimum in January) to ₹1,245.41 (maximum in December).
The share price target for 2030, based on historical data, could potentially range from ₹2,179.82 (minimum) to ₹3,387.02 (maximum).
What Has Been Newgen Software Tech Ltd’s Profit Growth In The Past Five Years?
The profit has grown by approximately 77.08% over the past five years, from ₹96 million in March 2019 to ₹170 million in March 2023.
NewGen’s share price is shaped by things like how well the company is doing financially and how innovative it is in the fast-growing tech world, which, interestingly, stayed strong even when COVID-19 was causing chaos. Plus, what investors feel and think about the company, along with any new rules and security issues, can sway how the stock is doing.
What Is Newgen Software Tech Ltd’s Dividend Payout?
NewGen has maintained a very healthy dividend payout of 20.4%.
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Should One Invest In Newgen Software Tech?
Picture this: a steadily growing technology firm with a remarkable 19.2% profit growth over the past five years. That’s the kind of track record that grabs an investor’s eye.
So, here’s the scoop: NewGen’s current share price is at ₹844, and the best part? They’ve managed to keep their debt load impressively low. That’s a good sign for potential growth.
But wait, there’s more! Look at the numbers: a market cap of ₹11,829 Cr., a P/E ratio of 55.7, and solid return metrics with ROCE at 24.0% and ROE at 20.0%. It’s like having a strong foundation for a potential upward climb.
Sure, there’s the high/low range of ₹901 / ₹211, which shows there’s some market excitement. But in the world of stocks, that often spells opportunity for both growth seekers and those who like a good deal.
Plus, with a face value of ₹10.0, NewGen’s shares are pretty accessible to a wide range of investors.
In the grand scheme of things, nobody can predict the future of a share price with absolute certainty. But when you see a company like NewGen with its positive performance indicators, strategic dividend approach, and growth potential, it’s a story worth exploring in the world of stock investments.
Remember, before taking the plunge, always do your research and consider your own financial goals.
What did we learn?
- 1 About Newgen Software Technologies
- 2 Newgen Software Q3 Financial Highlights
- 3 How to purchase Newgen Software Tech shares?
- 4 Newgen Software Tech Share Price Target 2024 – 2030
- 4.1 Newgen Software Tech Share Price Target 2024
- 4.2 Newgen Software Tech Share Price Target 2025
- 4.3 Newgen Software Tech Share Price Target 2026
- 4.4 Newgen Software Tech Share Price Target 2027
- 4.5 Newgen Software Tech Share Price Target 2028
- 4.6 Newgen Software Tech Share Price Target 2029
- 4.7 Newgen Software Tech Share Price Target 2030
- 5 Newgen Software Tech Financial Condition: Last 5 Years
- 6 FAQs
- 6.1 What Is The Current Share Price Of Newgen Software Tech?
- 6.2 What Is The Share Price Target For Newgen Software Tech By 2025?
- 6.3 What Is The Share Price Target For Newgen Software Tech By 2030?
- 6.4 What Has Been Newgen Software Tech Ltd’s Profit Growth In The Past Five Years?
- 6.5 What Are The Factors Affecting NewGen’s Share Price?
- 6.6 What Is Newgen Software Tech Ltd’s Dividend Payout?
- 7 Should One Invest In Newgen Software Tech?
