'Reduce' Newgen Shares Maintains ICICI Securities Post Q1 Results; Sees Upto 6% Potential Downside

Newgen reported revenue growth of 1.9% YoY in INR terms, much below brokerage's expectations of +13.4% YoY and the company’s guidance of 20% YoY revenue growth..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..ICICI Securities Report.Newgen Software Technologies Ltd. reported a sharp miss vs our estimate on revenue, with growth of 1.9% YoY – much lower than company’s aspiration of 20%+ YoY growth. Revenue was impacted by lower large-license deals across its key vertical of banking (-5.2% YoY) and key markets of India (3% YoY) and the Middle East (0.3% YoY). Demand was impacted by macro headwinds in the Middle East and a pull-back in spends retail lending in India. We cut our EPS estimates by 4-5% led by a cut in revenue estimates. We model 7%/17%/15% revenue growth in INR terms in FY26/27/28. We continue to value Newgen at 35 times on Q3 FY27E to Q2 FY28E EPS of Rs 28 to arrive at a revised target price of Rs 970. Maintain Reduce. There is downside risk to margin estimates if revenue growth is lower than expected, as investments are front-loaded..Click on the attachment to read the full report:.Stay 'Neutral' On Axis Bank Maintains Motilal Oswal Post Mixed Q1 Results.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.

'Reduce' Newgen Shares Maintains ICICI Securities Post Q1 Results; Sees Upto 6% Potential Downside

Newgen's demand was impacted by macro headwinds in the Middle East and a pull-back in spends retail lending in India

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