1:1 Bonus Share & Rs 1,500 Crore Order Book: Multibagger IT Stock In Green After Bagging 4 Internation & Domestic Orders In One Single Day
The stock gave multibagger returns of 120 per cent in just 1 year and a whopping 1,660 per cent in 5 years.
On Thursday, shares of Newgen Software Technologies Ltd gained 2.45 per cent to Rs 1,749.95 per share from its previous closing of Rs 1,707.90 per share. The stock’s 52-week high is Rs 1,754.60 per share and its 52-week low is Rs 626.05 per share.
Newgen Software Technologies Limited has secured four significant orders, both international and domestic, within a single day.
Firstly, the company has received an award letter for the provision of Credit Automation services from an international customer. The total value of this contract is USD 16,43,256, and it will be executed over a period of five years.
Secondly, Newgen Software Technologies Pte. Ltd., the company's wholly owned subsidiary in Singapore, has received an intent from a customer for the implementation of a Knowledge and Records Management System (KRMS). This international project has an estimated value of SGD 17,47,298 and is expected to be completed within 4.5 years.
Thirdly, Newgen Software Inc. (NSI), a material subsidiary of the company based in the USA, has signed a Scope of Work with a banking client. This agreement covers the implementation of Digital Account Opening, Retail Loans, Enterprise Content Management (ECM), and Collection Upgrade solutions. The total value of this international contract is USD 18,29,019, and it will be executed over two years.
Finally, Newgen Software Technologies Limited has received a domestic order for its Newgen Remittance system. This purchase order's value, including taxes, is Rs 20,89,78,000, and it is expected to be completed within one year.
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About the Company
Newgen Software Technologies is a global software Company engaged in software product development, including designing and delivering end-to-end software solutions covering the entire spectrum of software services from workflow automation to Document management to imaging.
The shares of the company ex-traded bonus shares in the ratio 1:1 i.e., 1 new fully paid-up bonus equity share of Rs 10 each for every 1 existing fully paid-up equity share of Rs 10 each held by the members of the company as on the record date. The ex-date for the bonus issue of equity shares was Friday, January 12, 2024.
Newgen Software, with a market capitalisation exceeding Rs 24,000 crore and a remarkable 3-year stock price CAGR of 71 per cent, has demonstrated consistent growth. The company's commitment to profitability is evident in its 19.6 per cent CAGR in profit growth over the past 5 years. Additionally, Newgen Software has maintained a healthy dividend payout of 21.4 per cent. As of March 31, 2024, the company's robust order book of over Rs 1,500 crore, further solidifies its position in the market. The stock gave multibagger returns of 120 per cent in just 1 year and a whopping 1,660 per cent in 5 years. Investors should keep an eye on this small-cap IT stock.
Disclaimer: The article is for informational purposes only and not investment advice.