1368% returns in just 6 years, Newgen Software outperforms index by big margins

 

Newgen Software Technologies Overview

Newgen Software Technologies is a global leader in software product development, specializing in end-to-end solutions that span workflow automation, document management, and imaging.

Key Revenue Streams

1. Annuity-based Revenue:
• SaaS: Subscription fees for cloud and on-premise deployments.
• ATS/AMC: Annual technical support and maintenance charges.
• Support: Fees for support and development services.
2. Sale of Software Products: Upfront license fees for on-premise deployments.
3. Sale of Services: Milestone-based charges for implementation, development, and scanning services.

Revenue Mix (FY24)

 

·         Segment-wise:

Annuity Revenue: 60%

Sale of Products: 18%

Sale of Services: 22%

• Vertical-wise:
• Banking: 70%, Government/PSUs: 8%, Insurance: 7%, Healthcare: 7%, Others: 6%, BPO/IT: 2%.
• Geographical Split:
• India: 32%, EMEA: 35%, USA: 21%, APAC: 12%.

Global Footprint

Operating across 73 countries, Newgen serves 530+ clients, with direct presence in 7 countries, including offices in New York and Saudi Arabia (opened FY24).

 

NewgenONE Platform

This unified platform offers capabilities in process automation, content services, and communication management, enhanced by AI and cloud technologies. The platform includes ECM, BPM, and CCM solutions. An AI-enabled version, Marvin, was launched in FY24.

• Client base expanded from 26M (FY21) to 65M (FY24), with 51 new logos added in FY24.
• R&D spending was 9% of revenue, contributing to a robust patent portfolio of 45 filed and 24 granted patents.
• Addressed a ransomware security incident in March 2024 with global experts ensuring remediation.

Company Revenue and Profit:-

Company has reported revenue increase of more than 100% from 2019 to 2024 and increase in profit of almost 300% and company has maintained its profit margins.

	Mar-19	Mar-20	Mar-21	Mar-22	Mar-23	Mar-24	TTM
Sales +	552	577	610	711	888	1,136	1,263
Operating Profit	119	94	180	181	198	269	307
OPM %	22%	16%	29%	26%	22%	24%	24%

Company Stock performance:-

Company stock was trading at Rs.117 per share in 2018 and now it is trading at Rs. 1717 per share on 15.01.2025 i.e. increase of 1368%. That means if you have invested Rs.1 Lakh in 2018 it has already become 13.68 Lakh. These returns are apart from dividends given by company.  Lets see how much dividend has been given by company:-

Announcement Date	Ex-Dividend Date	Dividend Type	Dividend (Rs)
30-Apr-24	18-Jul-24	Final	4
02-May-23	20-Jun-23	Final	5
04-May-22	15-Jun-22	Final	4.5
25-May-21	15-Jul-21	Final	3.5
26-May-20	20-Jul-20	Final	2
15-May-19	01-Aug-19	Final	3
17-May-18	01-Aug-18	Final	2
15-May-19	01-Aug-19	Final	3
17-May-18	01-Aug-18	Final	2
15-May-19	01-Aug-19	Final	3
17-May-18	01-Aug-18	Final	2
		Total	34

You can see that company is consistent  dividend paying company and has already given dividend of Rs.34 per share. It is almost 1/3^rd of investment amount if have invested in year 2018.