Newgen Software Technologies Share Price Target 2026 to 2030
Newgen Software Technologies Ltd is a global provider of digital process automation and content management solutions, serving clients across banking, insurance, government, healthcare, and logistics sectors. Headquartered in New Delhi, the company has built a strong reputation for its low-code platform (NewgenONE) that enables enterprises to digitize workflows, manage documents, and automate customer onboarding. With a debt-free balance sheet, consistent profit growth, and high return ratios, Newgen presents a compelling case for long-term investors in India’s IT and SaaS ecosystem. However, the recent stock price correction warrants a closer look at valuation and execution risks. This article provides a fact-based outlook and realistic share price targets for each year from 2026 to 2030.
Business: Offers workflow automation, enterprise content management (ECM), and customer communication management (CCM) via cloud and on-premise deployments
Clients: Over 3,000 organizations globally, including banks like HDFC, ICICI, and international institutions
Revenue Model: Mix of annuity-based SaaS/AMC revenue (~70%) and project-based services
Listed: Yes – on BSE (540384) and NSE (NEWGEN)
Clarifications:
Is Newgen debt-free? Yes – ₹0 Cr debt with ₹246 Cr cash.
How big is Newgen? Market cap of ₹8,070 Cr—a mid-cap IT company.
Is it good to buy? Suitable for long-term investors who believe in India’s digital transformation and recurring-revenue software models.
Why is NEWGEN falling? Due to valuation concerns (P/E ~28.5x), slowing large deal closures, and global IT spending caution in 2025.
Fair value? Based on peer P/E (25–28x) and growth, fair value is ₹520–₹580—close to current levels (~₹567).
Newgen Software: Key Financial Snapshot
Metric
Value
Market Capitalization
₹8,070.84 Cr
Current Share Price
₹567
52-Week High / Low
₹1,379 / ₹544
P/E (TTM)
28.50
P/B (TTM)
5.27
Book Value (TTM)
₹107.57
EPS (TTM)
₹19.90
ROE
23.93%
ROCE
29.46%
Dividend Yield
0.88%
Debt
₹0 Cr (debt-free)
Cash Reserves
₹246.44 Cr
Sales Growth (YoY)
19.21%
Profit Growth (YoY)
23.57%
Shareholding Pattern
Category
Holding (%)
Promoters
53.52%
Public (Retail)
19.46%
Foreign Institutions (FII)
17.34%
Domestic Institutions (DII)
9.68%
Others
0%
Note: Strong promoter control and growing institutional interest reflect confidence in the business model.
Newgen Share Price Target Forecast (2026–2030)
Based on recurring revenue strength, high ROCE, and global SaaS tailwinds, we project the following realistic price ranges:
Year
Target Price Range (₹)
2026
₹590 – ₹660
2027
₹630 – ₹720
2028
₹670 – ₹780
2029
₹710 – ₹840
2030
₹750 – ₹900
These targets assume:
EPS CAGR of 18–20% (supported by 23.5% recent profit growth)
P/E range of 25–28x (in line with quality IT peers)
Sustained dividend payout (~20–25% of profits)
Year-wise Breakdown
Newgen Share Price Target 2026
Year
Target 1
Target 2
2026
₹590
₹660
Rationale: Near-term upside depends on Q4 FY26 deal pipeline and cloud migration momentum. Current P/E of 28.5x is reasonable for a high-ROCE, debt-free IT firm.
Newgen Share Price Target 2027
Year
Target 1
Target 2
2027
₹630
₹720
Rationale: Expected benefit from AI-integrated workflow automation and expansion in North America & Europe. Recurring revenue (>70%) provides stability.
Newgen Share Price Target 2028
Year
Target 1
Target 2
2028
₹670
₹780
Rationale: By 2028, NewgenONE platform adoption could drive margin expansion. High ROCE (29.5%) supports premium valuation.
Newgen Share Price Target 2029
Year
Target 1
Target 2
2029
₹710
₹840
Rationale: Long-term play on global digital transformation in BFSI and government. Scalable SaaS model reduces client concentration risk.
Newgen Share Price Target 2030
Year
Target 1
Target 2
2030
₹750
₹900
Rationale: The upper end assumes 30%+ ROCE sustainability, strong dollar revenue, and minimal client churn. Even at ₹900, P/E would be ~27x—justified for quality.
Strengths vs Risks
✅ Strengths
Zero debt and healthy cash flow
High ROCE (29.5%) and ROE (23.9%)
Recurring revenue model (70% annuity)
Global client base with low India dependency (~30% revenue from India)
⚠️ Risks
Valuation sensitivity to global IT spending cycles
High debtor days (~137 days)—working capital pressure
Limited scale vs large-cap IT peers (TCS, Infosys)
Growth-focused investor bullish on Indian SaaS and digital automation
FAQs
Yes—for long-term portfolios. Its debt-free status, recurring revenue, and global presence make it a quality compounder.
Due to profit booking after the 2024 rally, global IT budget delays, and a valuation reset from the peak P/E of 40x.
Around ₹520–₹580, based on 25–28x P/E and 20% EPS growth—close to current price.
₹8,070 Cr market cap—classified as a mid-cap IT company.
Yes—zero debt with ₹246 Cr cash reserves.
Final Verdict
Newgen Software is a high-quality, niche player in the global digital automation space. While not a mega-cap, its capital efficiency, recurring revenue, and strategic relevance to BFSI digitization make it a solid long-term holding. Our 2026–2030 price targets (₹590–₹900) reflect steady appreciation—not speculative hype. Investors should consider accumulating on dips with a 5-year horizon.
📌 Disclaimer: Price targets are estimates based on current fundamentals and sector trends. They are not investment advice. Please consult a SEBI-registered advisor before investing.
Hi, I’m Raj Mittal, a stock market content writer focused on company analysis, share price trends, and fundamental research. I create simple, research-based insights to help investors make smarter market decisions.
