Broker’s call: Newgen Software (Buy)

BUSINESS

Broker’s call: Newgen Software (Buy)

AIMPWA

May 5, 2025

Table of Content

Target: ₹1,666

CMP: ₹1,042.65

Newgen Software Technologies has delivered a robust performance with nearly 13 per cent q-o-q and around 15 per cent y-o-y revenue growth, primarily driven by a sharp uptick in implementation (+39 per cent q-o-q) and license revenue (+23.5 per cent q-o-q), alongside solid traction in India (+9.5 per cent q-o-q) and APAC (+13.8 per cent q-o-q).

Despite prevailing uncertainties, the company projects FY26 revenue growth of about 20 per cent, with momentum expected to sustain across geographies. We model 21/22 per cent growth for FY26/FY27, backed by a robust FY25 order book at ₹1,664 crore and a 30 per cent q-o-q surge in Q4 order intake.

Continued strategic investments in ER&D, sales & marketing, and agentic AI bolster management’s growth conviction. Accordingly, we upgrade the stock to Buy (from Hold), with a revised TP of ₹1,166 (due to recent Nifty IT correction), assigning a 34x FY27E EPS multiple.

Strong traction in new logo addition, improving client mining, digital lending, improving prospects in APAC, India & Middle East will drive company’s revenue growth. In addition, the company is trying to improve growth in insurance vertical and taping trade finance in India & Middle East for the same.

Published on May 5, 2025

Source link

AIMPWA

mmkrishnandasu@gmail.com http://msmenews.sbs

In just 3 months, Ramp’s valuation jumped to $16B, up from $13B

AIMPWAJune 17, 2025

Spend management startup Ramp announced on Tuesday that it raised a $200 million Series E led by its largest investor, Founders Fund, at a post-money valuation of $16 billion. This is a jaw-dropping $3 billion increase over the $13 billion valuation Ramp announced just a few months ago in March, after a $150 million secondary...

STARTUPs

Unlock scaling growth at TC All Stage, and get $210 off for 6 more days

AIMPWAJune 17, 2025

T-minus 6 days until TechCrunch All Stage ticket prices rise. From now until June 22 at 11:59 p.m. PT, founders save $210 and investors save $200 on passes. Are you ready to push your startup to the next level? Or are you an investor looking to back the next big breakthrough? Join TC All Stage...

Applied Intuition raises $600 million as it pushes further into defense

AIMPWAJune 17, 2025

Buzzy autonomous vehicle software company Applied Intuition has closed a $600 million Series F funding round, pushing its valuation up to $15 billion. The round was co-led by BlackRock-managed funds and Kleiner Perkins, and included new investments from the Qatar Investment Authority, Abu Dhabi Investment Council, Greycroft, and more. Existing investors General Catalyst, Lux, Elad...

Sword Health nabs $40M at $4B valuation, pushes IPO plans to at least 2028

AIMPWAJune 17, 2025

Sword Health, an AI-powered digital health startup, has raised $40 million at a $4 billion valuation, a 33% jump from the $3 billion price tag it earned just a year ago. The funding was led by returning investor General Catalyst. Even though 10-year-old Sword Health is cash-flow positive, its CEO and founder, Virgílio Bento, told...

In just 3 months, Ramp’s valuation jumped to $16B from $13B

AIMPWAJune 17, 2025

Spend management startup Ramp announced on Tuesday that it raised a $200 million Series E led by its largest investor, Founders Fund, at a post money $16 billion valuation. This is a jaw-dropping $3 billion increase over the $13 billion valuation Ramp announced just a few months ago in March from a $150 million secondary...

ALL INDIA MSMES PROMOTION AND WELFARE ASSOCIATION