Newgen Software Technologies Ltd.
ISIN: INE619B01017 • Market Cap: ₹7,413 Cr
The 5-Pillar Quality Audit for Newgen Software Technologies Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (25.9%), Return on Capital Employed (20.8%), and equity compounding (16.9%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (9.0%) and 3Y PAT CAGR (7.6%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 23.63 vs PEG of 1.99 and Dividend Yield of 1.1%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 53.5%, backed by 21.9% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 20.8%)
Newgen Software Technologies Ltd. generates exceptional return on capital employed of 20.8%, reflecting pricing power and competitive moat.
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Information Technology)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Information Technology space.
Quantitative Strategy Eligibility
Checking NEWGEN against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 76/100 and clean gearing.
GARP / Value-Growth Blend
Provides balanced valuation margin with strong profitability scores.
Information Technology Sector Peer Comparison
Compare NEWGEN directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Newgen Software Technologies Ltd. (NEWGEN)Current | 76/100 | ₹7,413 Cr | 23.63 | 20.8% | 0.00 | — |
| Tata Consultancy Services Ltd. (TCS) | 79/100 | ₹8.27 Lakh Cr | 16.62 | 60.9% | 0.00 | View |
| Infosys Ltd. (INFY) | 78/100 | ₹4.53 Lakh Cr | 14.97 | 41.1% | 0.00 | View |
| HCL Technologies Ltd. (HCLTECH) | 75/100 | ₹3.59 Lakh Cr | 20.60 | 28.7% | 0.00 | View |
| Wipro Ltd. (WIPRO) | 71/100 | ₹1.78 Lakh Cr | 13.45 | 18.7% | 0.19 | View |
| Tech Mahindra Ltd. (TECHM) | 75/100 | ₹1.55 Lakh Cr | 30.20 | 22.0% | 0.00 | View |
Frequently Asked Questions: Newgen Software Technologies Ltd.
Q:What is the 5-Pillar Fundamental Score for Newgen Software Technologies Ltd. (NEWGEN)?
Newgen Software Technologies Ltd. has a RupeeTools Fundamental Score of 76/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (87/100), Financial Health (87/100), Growth (55/100), Valuation (68/100), and Ownership Quality (78/100).
Q:Is NEWGEN fundamentally strong for long-term investment?
Yes, NEWGEN exhibits solid fundamental strength with a 76/100 score, driven by a return on equity of 16.9% and a debt-to-equity ratio of 0.00.
Q:Does NEWGEN pass the Coffee Can Investing filter?
Yes! NEWGEN satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does NEWGEN compare against other Information Technology peers?
Within India's Information Technology sector, NEWGEN trades at a P/E of 23.63 and generates an ROCE of 20.8%. Compare its 5-Pillar score of 76/100 against top sector peers like Tata Consultancy Services Ltd. (79/100), Infosys Ltd. (78/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.