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.

 

HCL Tech -1500% returns and 450% dividend

 In this article we will discuss about an IT stock which outshine other companies over the period of long time. Company name is HCL technologies.

Business Model:-

HCL Technologies is a leading global IT services and consulting company headquartered in Noida, India. Established in 1976, it operates across 50+ countries, offering a wide array of services, including IT and business services, engineering and R&D, and digital process operations. HCL caters to diverse industries such as financial services, healthcare, retail, telecommunications, and manufacturing.

The company’s key strengths lie in digital transformation, cloud computing, cybersecurity, and artificial intelligence. HCL’s proprietary frameworks, such as Mode 1-2-3 strategy, help businesses achieve operational efficiency, innovation, and growth. It also invests heavily in cutting-edge technologies and collaborates with leading organizations globally.

With over 220,000 employees, HCL emphasizes a culture of innovation and customer-centricity. Its revenues have consistently surpassed $12 billion annually, reflecting its robust financial performance. HCL’s notable clients include Fortune 500 companies, and its partnerships with leading tech firms like Microsoft, IBM, and Google enhance its global footprint.

Sustainability and corporate responsibility are integral to HCL’s ethos, focusing on environmental initiatives and community welfare. HCL Technologies is recognized for its contributions to the IT sector and continues to be a transformative partner for businesses worldwide.

HCL tech Past 5 years performance:-

	Mar-19	Mar-20	Mar-21	Mar-22	Mar-23	Mar-24	Till date
Sales	60,427	70,676	75,379	85,651	1,01,456	1,09,913	1,13,864
Operating Profit	13,926	17,316	20,048	20,529	22,628	24,198	25,066
OPM %	23%	24%	27%	24%	22%	22%	22%

You can see from above that company revenue has been almost doubled from 2019 and also maintaining sustained profit margins despite slowdown in global markets.

HCL Tech Stock performance:-

HCL tech stock has delivered returns of 1513% since 2000. In year 2000, it was trading at Rs.122.39 per share. Stock is now trading at Rs.1975 per share on 13.01.2025. If you have invested Rs.1 Lakh in year, 2000 now has converted to Rs.15.13 lakh. These returns are without dividend. 

This company is constantly paying hefty dividend, let’s see how much dividend this company has paid:-

Announcement Date	Ex-Dividend Date	Dividend Type	Dividend (Rs)
17-Sep-24	22-Oct-24	Interim	12
20-Mar-24	07-May-24	Interim	18
15-Dec-23	19-Jan-24	Interim	12
15-Sep-23	20-Oct-23	Interim	12
15-Jun-23	20-Jul-23	Interim	10
17-Mar-23	28-Apr-23	Interim	18
16-Dec-22	19-Jan-23	Interim	10
12-Oct-22	19-Oct-22	Interim	10
04-Jul-22	19-Jul-22	Interim	10
01-Apr-22	28-Apr-22	Interim	18
24-Dec-21	20-Jan-22	Interim	10
15-Sep-21	21-Oct-21	Interim	10
07-Jul-21	27-Jul-21	Interim	6
13-Apr-21	29-Apr-21	Interim	6
14-Apr-21	29-Apr-21	Special	10
15-Jan-21	21-Jan-21	Interim	4
28-Sep-20	22-Oct-20	Interim	4
07-May-20	14-Sep-20	Final	2
03-Jul-20	23-Jul-20	Interim	2
15-Jun-23	20-Jul-23	Interim	10
17-Mar-23	28-Apr-23	Interim	18
16-Dec-22	19-Jan-23	Interim	10
12-Oct-22	19-Oct-22	Interim	10
04-Jul-22	19-Jul-22	Interim	10
15-Jun-23	20-Jul-23	Interim	10
17-Mar-23	28-Apr-23	Interim	18
16-Dec-22	19-Jan-23	Interim	10
12-Oct-22	19-Oct-22	Interim	10
04-Jul-22	19-Jul-22	Interim	10
01-Apr-22	28-Apr-22	Interim	18
24-Dec-21	20-Jan-22	Interim	10
15-Sep-21	21-Oct-21	Interim	10
07-Jul-21	27-Jul-21	Interim	6
13-Apr-21	29-Apr-21	Interim	6
14-Apr-21	29-Apr-21	Special	10
15-Jan-21	21-Jan-21	Interim	4
28-Sep-20	22-Oct-20	Interim	4
07-May-20	14-Sep-20	Final	2
03-Jul-20	23-Jul-20	Interim	2
20-Dec-19	24-Jan-20	Interim	2
30-Sep-19	31-Oct-19	Interim	2
24-Jul-19	14-Aug-19	Interim	2
23-Apr-19	16-May-19	Interim	2
15-Jan-19	05-Feb-19	Interim	2
12-Oct-18	30-Oct-18	Interim	2
13-Jul-18	02-Aug-18	Interim	2
18-Apr-18	09-May-18	Interim	2
08-Jan-18	29-Jan-18	Interim	2
16-Oct-17	01-Nov-17	Interim	2
17-Jul-17	03-Aug-17	Interim	2
11-May-17	24-May-17	Interim	6
13-Jan-17	01-Feb-17	Interim	6
10-Oct-16	27-Oct-16	Interim	6
22-Jul-16	10-Aug-16	Interim	6
18-Apr-16	05-May-16	Interim	6
06-Jan-16	27-Jan-16	Interim	6
01-Oct-15	23-Oct-15	Interim	5
21-Jul-15	07-Aug-15	Interim	5
01-Apr-15	24-Apr-15	Interim	4
09-Jan-15	04-Feb-15	Interim	8
07-Oct-14	21-Oct-14	Interim	6
28-Jul-14	05-Aug-14	Interim	12
28-Mar-14	22-Apr-14	Interim	4
03-Jan-14	22-Jan-14	Interim	4
31-Jul-13	18-Dec-13	Final	6
04-Oct-13	22-Oct-13	Interim	2
05-Apr-13	22-Apr-13	Interim	2
17-Jan-13	21-Jan-13	Interim	2
25-Jul-12	19-Oct-12	Final	4
25-Jul-12	19-Oct-12	Interim	-
26-Jul-12	19-Oct-12	Interim	2
04-Apr-12	23-Apr-12	Interim	2
04-Jan-12	20-Jan-12	Interim	2
27-Jul-11	21-Oct-11	Final	2
28-Jul-11	21-Oct-11	Interim	4
08-Apr-11	25-Apr-11	Interim	2
07-Jan-11	24-Jan-11	Interim	2
29-Jul-10	22-Oct-10	Final	1
30-Jul-10	22-Oct-10	Interim	1.5
09-Apr-10	26-Apr-10	Interim	1
12-Jan-10	29-Jan-10	Interim	1
25-Aug-09	02-Dec-09	Final	1
15-Oct-09	30-Oct-09	Interim	1
13-Apr-09	24-Apr-09	Interim	1
13-Jan-09	28-Jan-09	Interim	2
01-Aug-08	22-Oct-08	Final	3
02-Aug-08	22-Oct-08	Interim	3
01-Apr-08	21-Apr-08	Interim	2
07-Jan-08	23-Jan-08	Interim	2
13-Aug-07	30-Nov-07	Final	2
28-Sep-07	23-Oct-07	Interim	2
04-Apr-07	23-Apr-07	Interim	2
29-Dec-06	19-Jan-07	Interim	4
21-Aug-06	04-Dec-06	Final	4
28-Sep-06	20-Oct-06	Interim	4
30-Mar-06	25-Apr-06	Interim	4
02-Jan-06	24-Jan-06	Interim	4
23-Aug-05	06-Dec-05	Final	4
06-Oct-05	31-Oct-05	Interim	4
06-Apr-05	29-Apr-05	Interim	4
07-Jan-05	01-Feb-05	Interim	4
15-Sep-04	08-Dec-04	Final	4
04-Oct-04	29-Oct-04	Interim	4
13-Apr-04	30-Apr-04	Interim	2
13-Jan-04	04-Feb-04	Interim	2
12-Aug-03	17-Dec-03	Final	2
01-Nov-03	18-Nov-03	Interim	2
19-Mar-03	15-May-03	Interim	2
		Total	589.5

 

Company has paid dividend of Rs.589.5 per share since 2003 this means if you have invested Rs.1 Lakh at Rs.122.39 per share it has already more than 4.5 times of investment amount.