A Goldman Sachs-backed fintech firm is drawing consideration as its inventory at the moment trades almost 58 p.c under its all-time excessive. Regardless of the steep correction, the corporate operates in a high-growth sector with robust long-term fundamentals. For buyers on the lookout for potential rebound candidates, this discounted fintech participant is perhaps value holding on the radar.
Share worth motion
With a market capitalization of Rs.11,655 crores, the shares of Newgen Software program Applied sciences Ltd closed at Rs.855.00 every, reflecting a 58 p.c drop from its 52-week excessive worth of Rs.1,798.90 per share. On Monday, the inventory reached an intra-day low of Rs.758.20 every, falling 18 p.c from its earlier closing worth of Rs.921.80 apiece.
Enterprise Overview
Newgen Software program continues to prioritize banking and monetary providers as its core vertical, with growing traction within the insurance coverage and authorities sectors. Current vital wins embrace a Rs.25 crore mission from a significant insurance coverage firm in India and a USD 1.5 million order from a number one monetary establishment within the US, highlighting the corporate’s increasing presence in numerous industries.
Key Choices
Newgen’s key choices embrace the NewgenONE Platform, a low-code resolution designed for end-to-end enterprise course of automation, making certain fast and safe utility improvement.
The corporate additionally offers Course of Automation instruments that combine robotic course of automation (RPA) and dynamic case administration to optimize workflows. Moreover, AI Integration throughout the platform leverages generative AI to reinforce productiveness and streamline operations throughout varied enterprise features.
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Monetary Efficiency
Newgen Software program Applied sciences Ltd reported robust monetary efficiency in Q3 FY25, with income rising 16 p.c year-on-year to Rs.346 crore, up from Rs.299 crore in Q3 FY24. The corporate additionally witnessed a 30 p.c surge in internet revenue, which climbed to Rs.84 crore from Rs.65 crore within the corresponding interval final yr. This development was pushed by strong demand for its digital transformation options throughout international markets.
Accounting Ratios
The corporate has a Return on Capital Employed (ROCE) of 27.39 p.c and a Return on Fairness (ROE) of twenty-two.45 p.c. Its Value-to-Earnings (P/E) ratio stands at 41.84, decrease than the business common of fifty.98. Moreover, the corporate maintains a present ratio of 4.05, a debt-to-equity ratio of 0.03, and an Earnings Per Share (EPS) of Rs.22.04.
Shareholding Sample
As of the December 2024 shareholding sample, promoters of Newgen Software program Applied sciences Ltd maintain a 54.30 p.c stake within the firm. Overseas Institutional Traders (FIIs) personal 20.31 p.c, whereas Home Institutional Traders (DIIs) and retail buyers maintain 9.10 p.c and 16.06 p.c, respectively. Notably, Goldman Sachs owns 2.92 p.c, and the Massachusetts Institute of Know-how holds a 4.14 p.c stake.
Firm Profile
Established in 1992 and headquartered in New Delhi, India, Newgen Software program Applied sciences Restricted is a outstanding supplier of digital transformation options, with experience in Enterprise Content material Administration (ECM), Enterprise Course of Administration (BPM), and Buyer Communication Administration (CCM).
Written by – Siddesh S Raskar
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