Why Experts See Strong Gain On Mukul Agrawal Stock Post Q1 Result?

Newgen Software Technologies Ltd is a mid-cap IT company which recorded a market cap of Rs 5,835.01 Cr during Friday's closing session. After the company released its Q1FY24 figures, analysts of the brokerage firm ICICI Securities forecasted that the stock with a strong upside.

Newgen Software Technologies Results

The firm reported a total net profit of Rs 30.15 crore for the quarter ended in June, which is a rise of 57% over the Rs 19.17 crore recorded in the same period of the previous fiscal. In Q1FY24, revenue from operations climbed 33.9% to Rs 251.67 crore from Rs 187.89 crore in the same quarter last year.

Diwakar Nigam, Chairman & Managing Director, Newgen Software Technologies Ltd. said - "Continuing the strong momentum, Q1 witnessed robust growth across all geographies. The Company witnessed the highest quarterly YoY revenue growth rate. We are witnessing immense opportunities for digital journeys across the financial services sector as well as new requirements for automation at scale. The launch of the recent version of NewgenONE platform further shows our committed towards this direction. We are embedding AI and generative AI capabilities in our platforms, redefining the future enterprise automations."

"During the quarter, we witnessed strong bookings from both - existing and new customers. We are working on building a long term sustainable organization creating robust partner ecosysytems, long term customer relationships, dependable supply chains and a diverse employee base." said Virender Jeet, CEO, Newgen Software.

Newgen Software Technologies Share Price Target

Sumeet Jain and Aditi Patil the two research analysts of ICICI Securities said, "Newgen reported a strong set of Q1FY24 earnings with significant beat across revenue, EBITDA, PAT and broad-based demand across geographies led primarily by banking and insurance verticals. This result underscores our thesis around Newgen that a) it operates in large global TAM of USD 38bn with just 0.3% market share, implying significant room for market share gains, b) it has market leadership for its product offerings in both India and the Middle East where the health of its banking customers is far better than DM banks, and c) there is significant room for further client mining given it's currently generating ~USD 120mn revenue annually with almost 520 clients."

"On the back of robust Q1result, we have revised our revenue growth assumption upwards for FY24E to 25% (vs 21% earlier). This, along with higher other income, is leading to an increase in our EPS estimates by 10%/7%/8% for /25E/26E, respectively. As a result, we are now expecting 26% EPS CAGR for Newgen over FY23-26E. We retain our BUY rating on the stock with a revised 12-month target price of INR 859 (vs INR 797 earlier) based on 23x Q5-Q8 EPS of INR 37. This implies a potential upside of 21%," they further added.

Newgen Software Technologies Share Price

On Friday, the shares of Newgen Software Technologies closed on the BSE at Rs 834.10 apiece up by 3.98% from the previous close of Rs 802.15. The stock made a 52-week-high of Rs 845.35 on (21/07/2023) and a 52-week-low of Rs on 327.95 (10/11/2022).

Newgen Software Technologies Shareholding

During Q1FY24, the company recorded promoter shareholding of 55.16%, FIIs stake of 15.34%, DIIs stake of 8.22%, public stake of 20.90% and others' stake of 0.38%. As per the shareholding pattern of Newgen Software Technologies for Q1FY24 available on BSE, ace investor Mukul Mahavir Agrawal held fully paid-up equity shares of 8 lakh or 1.14% stake in the company.

Disclaimer

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