₹990 - That's What Analysts Think Newgen Software Technologies Limited (NSE:NEWGEN) Is Worth After These Results

Investors in Newgen Software Technologies Limited (NSE:NEWGEN) had a good week, as its shares rose 7.3% to close at ₹835 following the release of its third-quarter results. Newgen Software Technologies missed revenue estimates by 2.3%, coming in at₹3.2b, although statutory earnings per share (EPS) of ₹4.73 beat expectations, coming in 2.2% ahead of analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Newgen Software Technologies after the latest results.

View our latest analysis for Newgen Software Technologies

Taking into account the latest results, the most recent consensus for Newgen Software Technologies from three analysts is for revenues of ₹15.8b in 2025. If met, it would imply a substantial 35% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 36% to ₹21.93. In the lead-up to this report, the analysts had been modelling revenues of ₹15.6b and earnings per share (EPS) of ₹21.62 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 34% to ₹990. It looks as though they previously had some doubts over whether the business would live up to their expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Newgen Software Technologies analyst has a price target of ₹1,070 per share, while the most pessimistic values it at ₹858. This is a very narrow spread of estimates, implying either that Newgen Software Technologies is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Newgen Software Technologies' past performance and to peers in the same industry. The analysts are definitely expecting Newgen Software Technologies' growth to accelerate, with the forecast 27% annualised growth to the end of 2025 ranking favourably alongside historical growth of 13% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Newgen Software Technologies is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Newgen Software Technologies going out to 2026, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Newgen Software Technologies that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.