Newgen Software Technologies Limited

NSEI:NEWGEN Stock Report

Market Cap: ₹154.2b

Newgen Software Technologies Valuation

Is NEWGEN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of NEWGEN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NEWGEN (₹1101.8) is trading above our estimate of fair value (₹379.08)

Significantly Below Fair Value: NEWGEN is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NEWGEN?

Key metric: As NEWGEN is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for NEWGEN. This is calculated by dividing NEWGEN's market cap by their current earnings.
What is NEWGEN's PE Ratio?
PE Ratio52.9x
Earnings₹2.92b
Market Cap₹154.17b

Price to Earnings Ratio vs Peers

How does NEWGEN's PE Ratio compare to its peers?

The above table shows the PE ratio for NEWGEN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average54.4x
BSOFT Birlasoft
24.4x12.2%₹150.8b
500408 Tata Elxsi
49.5x13.1%₹404.5b
KPITTECH KPIT Technologies
48.1x16.5%₹349.9b
QUICKHEAL Quick Heal Technologies
95.8xn/a₹30.9b
NEWGEN Newgen Software Technologies
52.9x21.1%₹154.2b

Price-To-Earnings vs Peers: NEWGEN is good value based on its Price-To-Earnings Ratio (52.9x) compared to the peer average (54.4x).

Price to Earnings Ratio vs Industry

How does NEWGEN's PE Ratio compare vs other companies in the IN Software Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
CLOUD Varanium Cloud
0.3xn/aUS$7.42m
No more companies available in this PE range
NEWGEN 52.9xIndustry Avg. 33.5xNo. of Companies10PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: NEWGEN is expensive based on its Price-To-Earnings Ratio (52.9x) compared to the Indian Software industry average (33.5x).

Price to Earnings Ratio vs Fair Ratio

What is NEWGEN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NEWGEN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio52.9x
Fair PE Ratio36.6x

Price-To-Earnings vs Fair Ratio: NEWGEN is expensive based on its Price-To-Earnings Ratio (52.9x) compared to the estimated Fair Price-To-Earnings Ratio (36.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst NEWGEN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹1,101.80
₹1,421.00
+29.0%
5.9%₹1,500.00₹1,260.00n/a5
Nov ’25₹1,291.45
₹1,421.00
+10.0%
5.9%₹1,500.00₹1,260.00n/a5
Oct ’25₹1,318.70
₹1,150.50
-12.8%
10.0%₹1,300.00₹1,010.00n/a4
Sep ’25₹1,114.50
₹1,100.67
-1.2%
8.0%₹1,220.00₹1,010.00n/a3
Aug ’25₹1,055.50
₹1,100.67
+4.3%
8.0%₹1,220.00₹1,010.00n/a3
Jul ’25₹1,004.95
₹1,026.67
+2.2%
12.0%₹1,150.00₹858.00n/a3
Jun ’25₹913.70
₹1,026.67
+12.4%
12.0%₹1,150.00₹858.00n/a3
May ’25₹929.05
₹1,026.67
+10.5%
12.0%₹1,150.00₹858.00n/a3
Apr ’25₹794.45
₹990.00
+24.6%
9.5%₹1,070.00₹858.00n/a3
Mar ’25₹833.70
₹990.00
+18.7%
9.5%₹1,070.00₹858.00n/a3
Feb ’25₹863.60
₹990.00
+14.6%
9.5%₹1,070.00₹858.00n/a3
Jan ’25₹795.08
₹738.17
-7.2%
20.3%₹870.00₹529.00n/a3
Dec ’24₹707.55
₹660.67
-6.6%
17.9%₹815.50₹529.00n/a3
Nov ’24₹572.00
₹592.17
+3.5%
7.8%₹637.50₹529.00₹1,291.453
Oct ’24₹450.28
₹426.50
-5.3%
1.1%₹430.00₹420.00₹1,318.703
Sep ’24₹412.48
₹426.50
+3.4%
1.1%₹430.00₹420.00₹1,114.503
Aug ’24₹423.40
₹426.50
+0.7%
1.1%₹430.00₹420.00₹1,055.503
Jul ’24₹339.35
₹335.00
-1.3%
1.5%₹340.00₹330.00₹1,004.952
Jun ’24₹328.93
₹308.75
-6.1%
10.1%₹340.00₹277.50₹913.702
May ’24₹251.08
₹230.17
-8.3%
4.6%₹240.00₹215.50₹929.053
Apr ’24₹225.35
₹230.17
+2.1%
4.6%₹240.00₹215.50₹794.453
Mar ’24₹230.55
₹230.17
-0.2%
4.6%₹240.00₹215.50₹833.703
Feb ’24₹209.10
₹227.63
+8.9%
4.5%₹240.00₹215.50₹863.604
Jan ’24₹180.10
₹217.63
+20.8%
1.1%₹220.00₹215.00₹795.084
Dec ’23₹181.60
₹217.63
+19.8%
1.1%₹220.00₹215.00₹707.554
Nov ’23₹171.25
₹216.83
+26.6%
1.0%₹220.00₹215.00₹572.003

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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