Shares of this global software company clocked 5% in Tuesday’s trading after reporting an increase in net profits by 44 percent YoY. The shares have delivered a multibagger return of 345 percent in one year to its shareholders.
With a market capitalization of Rs. 12,593 crores, the shares of Newgen Software Technologies Ltd started Tuesday’s trading session on a higher note at Rs. 880 compared to its previous close of Rs. 858.18. During the trading session, the shares clocked a 5 percent upper circuit at Rs. 901.05, also recorded as the company’s fresh 52-week high.
Such a bullish movement in the share price was observed after the company in an exchange filing announced its quarterly results. The company’s revenue increased by around 11 percent from Rs.293 crores during Q2FY24 to Rs. 324 crores in Q3FY24. In addition, the net profits zoomed by around 42 percent from Rs. 48 crores to Rs. 68 crores during the same timeframe.
Comparing these metrics on a YoY basis, the revenue increased by 27 percent from Rs. 255 crores during Q3FY23 to Rs. 324 crores in Q3FY24. On the other hand, the net profits magnified by 44 percent from Rs. 47 crores to 68 crores during the same period.
The company gets revenue from across the globe, primarily from Europe, Middle East, and Africa (EMEA) which contributes 32 percent of revenue, followed by India contributing 31 percent of the revenue, 24 percent of the revenue inflows from the USA and the remaining 13 percent of revenue comes from Asia-Pacific region.
Earlier, the company announced a partnership with Coforge to deliver transformative insurance lifecycle management solutions. Furthermore, they are expanding their integration portfolio through partnerships with leading ERP, CRM, banking, insurance, and cloud providers.
Previously, on December 4, global brokerage Jefferies raised its target price for the stock to Rs 1,740 from Rs 1,275 while sticking to its “buy” call.
The international broker said, “We are more confident on Newgen’s growth outlook and raise our revenue estimates by 2-3 percent and our EPS estimates by 2-4 percent. We expect Newgen to deliver a strong 26 percent EPS CAGR over FY24-26E”.
Headquartered in New Delhi, Newgen Software Technologies is a global software Company and is 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.
Written By Vaibhav Patil
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