Newgen Executes SoW Worth USD 1,930,147, Shares Fall 46% From High

Newgen Software shares gained in morning trade on Bombay Stock Exchange (BSE) on February 27, 2025 after the company informed that it has executed Statement of Work (SoW) with a US based client. Newgen share price rallied 0.23% in morning trade to Rs 962.65 per share. In last 2-years, Newgen Software stock rallied 344.57% and slipped over 43% year-to-date. Its market capitalisation is Rs 13,659.04 crore. The stock offers a return on equity (ROE) of 24.24%. Check more details below:

Newgen Software Executes SoW With US Client

According to the exchange filing of Newgen Software dated February 26, 2025, “We hereby inform you that Newgen Software Inc. (NSI), incorporated in the USA, the material Subsidiary of Newgen Software Technologies Limited (“the Company”) has executed a Statement of Work (SoW) with a USA based Client. The aggregate value of the aforesaid agreement for the initial three years is USD 1,930,147.” The duration of the contract is 3-years.

Newgen Software Shares Performance

The 52-week high price of Newgen Software shares on BSE stood at Rs 1,795.50 per share (as on 15/01/2025) and 52-week low price is Rs 626.05 per share (as on 15/04/2024), respectively. Newgen Software shares declined over 8% in last 1-month and underperformed the market. During the same time, Sensex dropped 0.97% and BSE IT index slipped 7.12%. However, in last 1-year the stock outperformed the market. The shares jumped 17.05% while BSE Sensex gained 2.10% and BSE IT Index fell marginally by 0.39%. The stock zoomed 308.6% in last 3-years and rallied 862.06% in last
5-years.

Newgen Q3 Results

The company on January 20, 2025 declared its Q3 results. It declared a surge of 30.8% YoY in its consolidated net profit to Rs 89 crore for the December quarter, amid strong operational performance and improved margins. It had declared its profit at Rs 68 crore during the corresponding quarter of last year, as per the BSE filing. Revenue from operations for December 2024 quarter stood at Rs 381 crore, highlighting a growth of 17.7% from Rs 323.6 crore declared in the year-ago tenure. Sequentially, the company posted a growth in revenue by 27% and 5.54%, respectively.

Why Newgen Software Shares Fell 46.39% From 52-Week High?

Newgen Software shares declined 46.39% from 52-week high price of 1795.50 per share, if current market price of Rs 962.65 per share is considered.

Brokerage firm slashed target price the stock to Rs 1240 per share from the previous target price of Rs 1500 per share. The analyst also downgraded the stock to underperform from buy.

The analyst said, slower growth in annuity revenue and India operations emerged as key negative surprise.

“We think Newgen’s strong revenue growth positions it well to continue delivering healthy margins, despite its investments in driving growth,” added Jefferies raising the margin estimates by 10 to 40 basis points between financial year 2025-2027 to factor in the beat in the current quarter. The analyst expects a 25% margin range over the next two years for Newgen.

Newgen Dividend History

It recommended a total of 7 dividends since August 1, 2018. In last 1-year, Newgen Software announced an equity dividend amounting to Rs 4.00 per share. Newgen Software Technologies offers a dividend yield of 0.41%.

Newgen Bonus Share History

The company recommended bonus share once since 2024. Its last bonus share was declared in the proportion of 1:1 with ex-date set as January 12, 2024.

Disclaimer: The stock has been picked from the brokerage report of Jefferies. Moneydaily.in, the author, and the respective brokerage house will not be held accountable for any losses caused as a result of decisions based on the article. Moneydaily.in advises readers to do their own research or consult a SEBI registered investment advisor before making any investment decisions.