Shares of a small-cap IT stock gained 6.6 percent to reach a 52-week high of ₹ 728.50 apiece on the National Stock Exchange on Wednesday’s early trades after the company received a key order. At 01:13 PM, its shares were trading at ₹ 714.10 apiece.
Newgen Software Technologies informed the bourses that it has received a purchase order worth ₹ 34.64 crores for the implementation of end-to-end trade Finance including Customer Web Portal & Supply Chain Finance Solution. This order is valid for a period of five years from the date of going live.
The IT Company’s share price increased by 101 percent from ₹ 362.15 apiece to ₹ 728.50 apiece, delivering multibagger returns of 101 percent. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares at the beginning of this year, the value of their holdings would have been ₹ 2.01 lakhs today!
Newgen Software Technologies is a global software company engaged in the business of 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.
With a market capitalization of ₹ 4,762 crores, Newgen Software is a small-cap company. It has an ideal return on equity of 19.71 percent and an ideal debt-to-equity ratio of 0.04. Its shares were trading at a price-to-earnings ratio (P/E) of 27.49, which is significantly lower than the industry P/E of 58.82, indicating that the stock might be undervalued as compared to its peers.
The company’s promoters hold a 55.16 percent stake in the company, followed by retail investors with 26.99 percent, foreign institutions with 15.34 percent and mutual funds with 2.51 percent.
Written by Simran Bafna
