pocketful logo
Newgen Software Technologies Ltd logo

Newgen Software Technologies Ltd

NSE: NEWGEN BSE: 540900

571.70

(2.51)%

Tue, 03 Feb 2026, 07:17 am

Analysis

dividend

thumbs up icon

Pros

  • Dividends paid are well covered by earnings (5.3x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (4.9x coverage).
  • Newgen Software Technologies's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
thumbs up icon

Cons

  • Newgen Software Technologies has only been paying a dividend for 2 years, and since then there has been no growth.
  • Newgen Software Technologies has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Newgen Software Technologies's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

thumbs up icon

Pros

  • Newgen Software Technologies's earnings are expected to grow significantly at over 20% yearly.
  • Newgen Software Technologies's earnings growth is expected to exceed the India market average.
  • Newgen Software Technologies's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Newgen Software Technologies's earnings are expected to exceed the low risk growth rate next year.
  • Newgen Software Technologies's net income is expected to increase by more than 50% in 2 years time.
  • Performance (ROE) is expected to be above the current IN Software industry average.
  • An improvement in Newgen Software Technologies's performance (ROE) is expected over the next 3 years.
  • Newgen Software Technologies's revenue growth is expected to exceed the India market average.
thumbs up icon

Cons

  • Cash flow for Newgen Software Technologies is expected to increase but not above the 50% threshold in 2 years time.
  • Newgen Software Technologies is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Newgen Software Technologies's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Newgen Software Technologies's revenue is expected to grow by 12.8% yearly, however this is not considered high growth (20% yearly).

health

thumbs up icon

Pros

  • Newgen Software Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Newgen Software Technologies is profitable, therefore cash runway is not a concern.
  • Newgen Software Technologies is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (120.8%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 8.1x debt.
  • Newgen Software Technologies's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (21.1% vs 13.6% today).
  • Interest payments on debt are well covered by earnings (EBIT is 7.8x coverage).
  • Newgen Software Technologies's level of debt (13.6%) compared to net worth is satisfactory (less than 40%).
thumbs up icon

Cons

  • High level of physical assets or inventory.

management

thumbs up icon

Pros

  • The tenure for the Newgen Software Technologies board of directors is about average.
  • Diwakar's compensation has been consistent with company performance over the past year, both up more than 20%.
  • The tenure for the Newgen Software Technologies management team is about average.
thumbs up icon

Cons

  • Diwakar's remuneration is higher than average for companies of similar size in India.

misc

thumbs up icon

Pros

    thumbs up icon

    Cons

    • Newgen Software Technologies is covered by less than 3 analysts.
    • Newgen Software Technologies has significant price volatility in the past 3 months.

    past

    thumbs up icon

    Pros

    • Newgen Software Technologies's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
    • Newgen Software Technologies used its assets more efficiently than the IN Software industry average last year based on Return on Assets.
    thumbs up icon

    Cons

    • Newgen Software Technologies's 1-year earnings growth is negative, it can't be compared to the 5-year average.
    • Newgen Software Technologies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • Newgen Software Technologies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • Newgen Software Technologies's 1-year earnings growth is negative, it can't be compared to the IN Software industry average.

    value

    thumbs up icon

    Pros

    • Newgen Software Technologies is good value based on expected growth next year.
    thumbs up icon

    Cons

    • Newgen Software Technologies's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Newgen Software Technologies's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Newgen Software Technologies is overvalued based on assets compared to the IN Software industry average.
    • Newgen Software Technologies is overvalued based on earnings compared to the IN Software industry average.
    • Newgen Software Technologies is overvalued based on earnings compared to the India market.
    • 540900 underperformed the Software industry which returned -27.7% over the past year.
    • 540900 underperformed the Market in India which returned -14.5% over the past year.
    • BSE:540900 is down -1.4% underperforming the Software industry which returned 11.5% over the past month.
    • BSE:540900 is down -1.4% underperforming the market in India which returned 8% over the past month.

    Open Your Free Demat Account Now!

    Step into a world of zero fees and limitless opportunities!

    pocketful logo

    2022-25 Pocketful. All rights reserved, Built with in India

    Version -5.76

    app image 1app image 2

    Explore

    Calculatorsfooter arrow down icon
    Popular Calculatorsfooter arrow down icon
    Group Stocksfooter arrow down icon

    Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800