This AI stock which operates in the business of development of software products including designing and delivering end-to-end solutions is in focus after the company received an order worth USD 2 million for a Digital Lending Platform.
Price Action
With a market capitalization of Rs. 22,685 Crores, the shares of Newgen Software Technologies Limited were up by 1.10 percent in the day’s trade touching a day’s high of Rs. 1,704.75 per share. The stock reiterated from the day’s high and closed at Rs. 1,617 per share which is 4.10 percent lower than the previous closing price of Rs. 1,686.20 apiece. The stock has delivered a return of 112 percent and has outperformed the Nifty Index in the past year.
What Happened
The company has received a a letter of commercial terms from a customer to the subsidiary Newgen Software Technologies LLC for the implementation of the Digital Lending and Onboarding Platform for a Retail product with a commercial value worth USD 20,00,000 (2 Million). The company awarded was an International Entity and the time period for the execution is one year. The transaction does not fall under the related party transaction.
About the Company
Newgen Software Technologies Limited, founded in 1992 and headquartered in New Delhi, is a leading provider of software solutions focused on Enterprise Content Management (ECM), Business Process Management (BPM), and Customer Communication Management (CCM). The company offers a low-code platform that enables organizations to develop and deploy applications efficiently, addressing complex business needs. With a global presence and over 1,200 installations across 58 countries, Newgen emphasizes digital transformation through automation and streamlined workflows. Its solutions cater to various sectors, including banking, healthcare, and government, enhancing operational efficiency and customer engagement while supporting cloud-based deployments.
Financials & Ratios
The company’s Revenue from operations grew by 23.20 percent year on year from Rs. 293 Crores in Q2FY24 to Rs. 361 Crores in Q2FY25, accompanied by a profit of Rs. 48 Crores to a profit of Rs. 70 Crores.
In terms of Return ratios, the company has a return on capital employed (ROCE) of 25.91 percent and the return on equity (RoE) stood at 22.81 percent. The net profit margin stood at 20.23 percent and the debt-to-equity ratio stood at 0.04 as of FY24.
Shareholding Pattern
As of September 2024, the shareholding pattern with the promoter’s stake holding a share of 54.30 percent in Newgen Software Technologies, Foreign Institutional Investors (FII) holding 19.98 percent, Domestic Institutional Investors (DII) holding 8.93 percent and public holdings standing at 16.80 percent.
Written by Santhosh S
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