Buy Newgen Software Technologies, target price Rs 550: Axis Securities

Axis Securities has buy call on Newgen Software Technologies with a target price of Rs 550.The current market price of Newgen Software Technologies is Rs 507.4. Axis Securities recommended to keep stop loss at Rs 470.

Newgen Software Technologies, incorporated in the year 1992, is a Small Cap company (having a market cap of Rs 3559.35 Crore) operating in IT Software sector.

Newgen Software Technologies key Products/Revenue Segments include Software Services and Software Products for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 264.30 Crore, up 13.58 % from last quarter Total Income of Rs 232.70 Crore and up 26.00 % from last year same quarter Total Income of Rs 209.76 Crore. Company has reported net profit after tax of Rs 48.20 Crore in latest quarter.

The company’s top management includes Mr.Diwakar Nigam, Mr.T S Varadarajan, Ms.Priyadarshini Nigam, Mr.Subramaniam Ramnath Iyer, Ms.Padmaja Krishnan, Mr.Kaushik Dutta, Mr.Saurabh Srivastava. Company has Walker Chandiok & Co. LLP as its auditors. As on 31-03-2023, the company has a total of 7 Crore shares outstanding.

Investment Rationale
Daily, weekly strong uptrend forming a series of higher tops and bottoms.

Promoter/FII Holdings
Promoters held 55.16 per cent stake in the company as of 31-Mar-2023, while FIIs owned 13.99 per cent, DIIs 8.18 per cent.