Mukul Mahavir Agrawal's Stock: Goldman Sachs Backed Mid-cap Company Secured International Contract Worth USD 1,385,000 for Five-Year Strengthening Global Expansion
With a PE ratio of 49, the company trades at a premium compared to the industry PE of 30.5. The company has a ROCE of 26.6 per cent and a ROE of 22.93 per cent.
Newgen Software Technologies Limited has announced a significant development involving its wholly-owned subsidiary, Newgen Software Inc., based in the USA. The subsidiary has successfully executed an agreement with an international customer, valued at USD 1,385,000. This contract, set to be executed over a period of five years, marks a notable achievement for Newgen Software Technologies as it continues to expand its global footprint.
This development underscores Newgen's strategic focus on enhancing its international presence and leveraging its capabilities in software product development and services. The company remains committed to delivering comprehensive software solutions, including workflow automation, document management, and imaging, to a diverse clientele across various sectors.
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Newgen Software Technologies is a global leader in software product development, offering end-to-end solutions that encompass workflow automation, document management, and imaging. The company's revenue streams are diversified, with 60 per cent derived from annuity-based revenues, including SaaS subscriptions and annual technical support. The sale of software products and services contributes 18 per cent and 22 per cent to the revenue mix, respectively. Newgen serves a wide range of industries, with a significant focus on banking, which accounts for 70 per cent of its vertical revenue. Geographically, the company has a strong presence in EMEA, India, and the USA, serving over 530 customers across 73 countries. The NewgenONE platform, featuring AI-enabled capabilities, is a cornerstone of its product offerings. In FY24, Newgen expanded its international footprint by opening offices in New York and Saudi Arabia, and it continues to innovate with a robust patent portfolio and significant R&D investments.
As of March 27, 2025, Newgen Software Technologies' stock is priced at Rs 1,010.95. The stock has a 52-week high of Rs 1,753.80 and a 52-week low of Rs 734.15. The company has delivered a 1-year return of 27.06 per cent and an impressive 3-year return of 286.57 per cent.
In the Quarterly Results of December 2024, the company reported a revenue of Rs 346.34 crore, reflecting a YoY growth of 15.88 per cent compared to Rs 298.88 crore in December 2023. The operating profit stood at Rs 102.70 crore, marking a 43.24 per cent increase from Rs 71.70 crore in the same quarter last year. The profit after tax (PAT) rose by 28.20 per cent to Rs 83.70 crore from Rs 65.29 crore in December 2023.
In FY24, the company posted a revenue of Rs 1,136.12 crore, registering a 27.97 per cent growth compared to Rs 887.80 crore in FY23. The net profit for the year stood at Rs 237.34 crore, up 41.32 per cent from Rs 167.94 crore in the previous financial year.
With a PE ratio of 49, the company trades at a premium compared to the industry PE of 30.5. The company has a ROCE of 26.6 per cent and a ROE of 22.93 per cent.
The company has a market capitalisation of Rs 14,306.22 crore.
Investors must keep this Mid-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.