Newgen Software - Digitally Transforming Enterprises With ‘NewGen’ Tech; Dolat Capital Initiates With A 'Buy'

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.We initiate coverage on Newgen Software Technologies Ltd. with a ‘Buy’ rating and target price of Rs 1,300 (implies ~50 times/40 times on FY26E/FY27E earnings per share).With a strong scalable model, we believe the company has a significant growth runway driven by: its strong performance in banking sector with 21% CAGR over FY19-24,consistent customer upgrades (tripled Rs 50 million plus customers in last four years), andsuccess in rapid transition towards SaaS with 40% CAGR over FY19-FY24 (now accounting 10% of revenues)..Newgen aspires to achieve $500 million revenue over next four-five years (implies 25%+ CAGR), supported by confidence of continued growth rate improvement over past run-rate. Newgen delivered revenue/EPS growth of 15%/20% CAGR over FY19-FY24. Noting Newgen’s varied capabilities, healthy customer addition, powering GTM strategy (expanding GSI channel) and revered industry recognition, we expect Newgen to deliver a strong revenue/EPS CAGR of 24%/27% over FY24- FY26E..Risks Intense CompetitionHigh Sector Concentration‘Niche’ Player in AutomationBusiness and results of operations are dependent on the contractsFailure or delays in obtaining third-party certifications and accreditations.Click on the attachment to read the full report:.PN Gadgil Jewellers IPO - Issue Details, Investment Thesis, Financials, Peer Comparison, Risks: Dolat Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Newgen Software - Digitally Transforming Enterprises With ‘NewGen’ Tech; Dolat Capital Initiates With A 'Buy'

The company aspires to achieve $500 million revenue over next four-five years, supported by confidence of continued growth rate improvement over past run-rate, says the brokerage.

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Newgen Software - Digitally Transforming Enterprises With ‘NewGen’ Tech; Dolat Capital Initiates With A 'Buy'

The company aspires to achieve $500 million revenue over next four-five years, supported by confidence of continued growth rate improvement over past run-rate, says the brokerage.

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