1:1 Bonus Issue: Buy Mid Cap IT Stock As Recommended By Jefferies Post Q4, TP Rs 1150

Leading global brokerage firm Jefferies has recommended only 2 stocks from IT Software sector. These two stocks are Infosys and Newgen Software Technologies. The analyst has suggested traders to buy Newgen Software Technologies Ltd share with target price of Rs 1150 apiece. Current market price of Newgen Software Technologies shares on BSE is Rs 952.70 per share with intraday fall of 4.43%. Newgen Software Technologies had recommended 1:1 bonus issue earlier in 2024 and fixed Jan 12 as record date. It also announced Rs 5 per share dividend in last 1-year. Goldman Sachs Funds - Goldman Sachs India Equity P has 3.30% stake in Newgen with 4,632,524 shares of the company. More details below:

Newgen Software Technologies Share Performance: The 52-week high price of Newgen Software Technologies share on BSE is Rs 1057.90 per share (as 6/05/2024) and 52-week low price is Rs 278.85 per share (as on 10/05/2023), respectively. The company has a market capitalisation of Rs 13,365.60 crore. Newgen Software Technologies shares soared 18% in last 2-weeks, rallied 59% in last 6-months, surged 235% in last 1-year, and offered return of 332% return in last 2-years. In last 3-years, Newgen Software Technologies shares zoomed 480%. Newgen Software Technologies has a PE of 56.14 and ROE of 20.75.

Newgen Software Technologies Dividend: As per the BSE filing of Newgen Software Technologies dated April 30, 2024, "recommended a final dividend of Rs. 4/- (four) per equity share (on face value of Rs. 10/- each on the expanded capital base post bonus issue of 1:1) i.e. 40% on a face value of Rs. 10/- per share, for the year ended 31st March 2024 subject to the approval of the Shareholders at the forthcoming Annual General Meeting ("AGM") of the Company. Information regarding the record date for payment of the final dividend, if any, will be intimated in due course."

Newgen Software Technologies Q4: The tech company declared a surge of 31.67% in its consolidated net profit to Rs 105.26 crore for Q4 ended March 2024 as compared to Rs 79.94 crore declared in the corresponding quarter of last year. Revenue from operations zoomed by 23.01% YoY to Rs 375.26 crore as compared to Rs 305.05 crore in Q4 FY2023, as per the BSE filing. The largest share of revenue came from banking vertical (73%), followed by insurance (8%), and Govt/PSUs (5%). For the whole financial year 24, its profit declared at Rs 251.60 crore, up 42.13% from Rs 177.01 crore declared in the similar quarter of last year. Revenue for the year arrived 27.70% higher at Rs 1,243.82 crore.

Newgen Software Technologies Dividend History: Newgen Software Technologies Ltd announced 6 dividends since August 1, 2018. In last 1-year, Newgen Software Technologies announced an equity dividend amounting to Rs 5.00 per share. At the current share price of Rs 943.55, Newgen Software Technologies offers dividend yield of 0.53%. Adjusting for Bonus/Splits the dividend yield is 0.26%.

Newgen Software Technologies Bonus Issue History: Newgen Software Technologies offered 1 bonus issue since Jan. 12, 2024. The last Bonus that Newgen Software Technologies Ltd declared was in the ratio 1:1 with ex-date fixed as January 12, 2024.

About Newgen Software: Newgen is the leading provider of a unified digital transformation platform with native process automation, content services, and communication management capabilities. Globally, successful enterprises rely on Newgen's industry-recognized low code application platform to develop and deploy complex, content-driven, and customer-engaging business applications on the cloud. From onboarding to service requests, lending to underwriting, and for many more use cases across industries. Newgen unlocks simple with speed and agility, according to its official website.

Disclaimer:

The stock has been picked from the brokerage report of Jefferies. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.