Newgen Software Q3 Results Review - Emerging Markets Near Term Growth Driver: IDBI Capital

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..IDBI Capital Report.Newgen Software Technologies Ltd. reported robust Q3 FY24 numbers registering 27% YoY growth in revenues and 44.5% YoY growth in profit after tax. Newgen Software is seeing healthy traction in order book (up 20% YoY) and higher deal size in insurance and banking, financial services and insurance. In addition, there is substantial execution of order book which was won in last few quarters. The digital cycle is on cusp of a robust growth and improving mature market growth will lead to strong logo addition and revenues. Hence, we expect revenues to grow at a compound annual growth rate of 29% over FY23-FY26E. Higher growth in revenues will further boost margins leading to PAT CAGR of 34% over FY23-FY26E. We have revised our earnings per share estimates upwards by 5% & 0.3% for FY25E and FY26E. Hence, we maintain 'Buy' rating on the stock with a revised target price of Rs 1,042 (34 times FY26E EPS) (previous target price 816 and multiple of 27 times)..Click on the attachment to read the full report: .L&T Tech Q3 Results Review - Strong Deal Wins, Commentary Indicate Good FY25: Motilal Oswal.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 Q3 Results Review - Emerging Markets Near Term Growth Driver: IDBI Capital

Robust growth trajectory to continue.

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