AI Summary
✦ ClarthaNewgen Software Technologies is a software product company serving India, Europe, the Middle East, Africa, Asia Pacific, Australia, and the United States. Its revenue centers on workflow automation, document management, and imaging, supported by the NewgenONE platform. NewgenONE spans agentic AI, intelligent process automation, content services, low-code development, and omnichannel customer engagement. North America’s AI adoption and recurring-revenue opportunity could support growth, though current revenue growth remains modest at 5.9%. Margins are stable, but profit declined 4.7%, indicating limited operating leverage despite continued product development. Debt-to-equity of 2.21 means leverage materially increases ROE sensitivity, although reported ROE is unavailable. At 25.1 times earnings, valuation appears fair relative to the sector, but not discounted against the company’s current growth rate. The key open question is whether AI adoption and recurring revenues can accelerate growth enough to offset leverage and recent profit pressure.
Price Forecast
Probabilistic Range
Probabilistic lognormal cone using 1Y realized volatility and analyst-target drift when available.
Revenue Forecast
₹ CrEPS Forecast
₹ / shareMulti-factor synthesis of 5 key dimensions
From 6 analysts
Fundamentals
Fundamentals institutional score is 76 using growth durability 76.2.
Valuation
Valuation institutional score is 72 using relative multiple z-scores where peer dispersion is available.
Analyst Consensus
Analyst View institutional score is 71 using mean target upside 10.8%; dispersion penalty 7.2; recommendation breadth from available consensus.
Technical Structure
Technicals institutional score is 84 using EMA-20 continuation within 5% tolerance; VCP range/volume contraction proxy.
Market Sentiment
Recent news flow is balanced or not decisive enough to tilt the tape. Based on 5 recent ticker-linked news items.
Signal Summary
Market intelligence remains Neutral. fundamentals and valuation provide support.
Composite weights: Fundamentals 25%, Valuation 20%, Analyst Consensus 20%, Technical Structure 20%, Market Sentiment 15%.
Key Data Points
Important Note: This is market intelligence, not investment advice. Always conduct your own research and consider your financial goals and risk tolerance.
Valuation Metrics
Trading 34.4% below historical median. Valuation is declining — currently in the strongly undervalued zone (z-score: -0.96). Confidence: 66%.
Live forward EPS implies next-12-month EPS of ₹29.24. Applying the stock's normalized valuation corridor produces a fair range of ₹745.91 to ₹1,335.10, with base value near ₹1,136.85 (+100.6% vs current price).
Live forward estimate anchored to the company's historical valuation corridor.
Forward EPS
₹29.24
Forward P/E
19.4x
Base Fair Value
₹1,136.85
Fair Range
₹745.91 - ₹1,335.10
Upside To Base
+100.6%
Estimate Source
Live forward EPS
Growth Estimate
+27.8%
5Y Average
27.46
Current
25.52
Overvalued
45.66
Undervalued
25.51
5Y Average
5.35
Current
4.97
Overvalued
7.88
Undervalued
2.26
5Y Average
18.20
Current
16.91
Overvalued
26.84
Undervalued
7.68
Peers & Comparison
Sector: Information Technology · Theme: Software Services
| Company | Rev. Growth | Margin | P/E | vs Avg | 52W Perf. |
|---|---|---|---|---|---|
BLACK BOX LIMITED BBOXSoftware Services | +9.5% | 3.4% | 57.7x Fair | +14% vs avg | +49.6% |
TATA ELXSI LIMITED TATAELXSISoftware Services | +14.5% | 16.7% | 36.1x Undervalued | -29% vs avg | -32.2% |
CYIENT LIMITED CYIENTSoftware Services | +21.3% | 5.0% | 25.1x Undervalued | -51% vs avg | -26.5% |
C.E. INFO SYSTEMS LIMITED MAPMYINDIASoftware Services | +14.9% | 28.0% | 41.4x Undervalued | -19% vs avg | -44.9% |
L&T TECHNOLOGY SER. LTD. LTTSSoftware Services | +2.6% | 11.7% | 30.4x Undervalued | -40% vs avg | -14.1% |
RATEGAIN TRAVEL TECHN LTD RATEGAINSoftware Services | +188.8% | 10.5% | 55.3x Fair | +9% vs avg | +93.2% |
TANLA PLATFORMS LIMITED TANLASoftware Services | +17.8% | 11.6% | 14.9x Undervalued | -71% vs avg | +3.4% |
PINE LABS LIMITED PINELABSSoftware Services | +19.6% | 4.5% | 145.7x Premium | +187% vs avg | -35.5% |
NEWGEN SOFTWARE TECH LTD trades at a discount (24.5x vs peer avg 50.8x), suggesting potential undervaluation relative to the Software Services cohort. Peers include BLACK BOX LIMITED, TATA ELXSI LIMITED, CYIENT LIMITED — selected based on business model, industry classification, market cap similarity, and business theme alignment.
Financials
Real statement data for revenue, earnings quality, conversion, and balance-sheet coverage. Monetary values are shown in Rs crore.
Latest revenue
₹304 CrJun 2026Latest net profit
₹60 CrJun 2026Latest EPS
₹4.19Jun 2026Net margin
15.0%Jun 2026Performance
Bars show revenue and net profit. The line shows net margin.
- Revenue
- Net income
- Net margin %
Earnings
Revenue is shown in crores. EPS is rupees per share.
- Revenue
- EPS
Revenue to profit conversion
Bridge from operating numbers to profit for the latest reported period.
Latest reported period: Jun 2026
Debt level and coverage
Debt, cash and free cash flow compared on the same crore scale.
- Debt
- Free cash flow
- Cash & equivalents
Results
| Metric | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales + | 224 | 264 | 299 | 350 | 283 | 331 | 346 | 394 | 281 | 366 | 355 | 418 | 304 |
| Expenses + | 196 | 212 | 227 | 232 | 242 | 255 | 244 | 266 | 245 | 269 | 256 | 272 | 258 |
| Operating Profit | 28 | 52 | 72 | 118 | 41 | 76 | 103 | 128 | 36 | 98 | 99 | 146 | 46 |
| OPM % | 12% | 20% | 24% | 34% | 15% | 23% | 30% | 33% | 13% | 27% | 28% | 35% | 15% |
| Other Income + | 12 | 8 | 11 | 14 | 22 | 19 | 6 | 13 | 35 | 10 | -18 | -7 | 40 |
| Interest | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 1 | 1 |
| Depreciation | 6 | 6 | 6 | 7 | 7 | 7 | 8 | 8 | 8 | 8 | 8 | 9 | 8 |
| Profit before tax | 32 | 53 | 76 | 124 | 55 | 87 | 99 | 132 | 61 | 98 | 71 | 130 | 77 |
| Tax % | 15% | 18% | 14% | 18% | 23% | 24% | 16% | 23% | 20% | 22% | 20% | 20% | 22% |
| Net Profit + | 27 | 44 | 65 | 101 | 42 | 66 | 84 | 101 | 49 | 77 | 56 | 103 | 60 |
| EPS in Rs | 1.94 | 3.12 | 4.66 | 7.22 | 3.02 | 4.70 | 5.97 | 7.15 | 3.44 | 5.41 | 3.97 | 7.26 | 4.19 |
| Raw PDF |
All values in ₹ Crores unless otherwise stated. Source: Screener Master (Standalone).
Events Timeline
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation