Newgen Software Shares: The ongoing rise in the shares of Newgen Software continued on Thursday, December 26 and the share jumped by about 7 percent to reach its new intraday high of Rs 1,725. With this, this stock has increased by about 44% so far in the month of December. The recent rise in the company’s shares has come after an important order received in Saudi Arabia. The multibagger IT company said its wholly owned subsidiary has received a purchase order worth $2.27 million or approximately Rs 19.32 crore in Saudi Arabia, which is to be completed in a year.
After the surge in December, shares of Newgen Software have now reached their highest ever level. Also, it has become the highest returning stock in NSE-500 this month. In the last one year, shares of Newgen Software have given multibagger returns of 127 percent.
“There are still no signs of weakness in Saudi Arabia. We are working on some really big deals, some of which should be coming through now,” the company said in earnings calls held after its September quarter results. It also said that Newgen has received much bigger deals from Saudi Arabia and the Asia Pacific region than before. The Middle East accounts for approximately 37% of Newgen’s business, making it one of the largest markets for the company.
To strengthen its presence in the Middle East market, Newgen has taken several new initiatives such as Islamic retail and SME financing. Although the main focus for Newgen still remains banking and financial services, the company has also strengthened its hold in the insurance and government sectors.
Newgen’s order book growth for the first half of the current fiscal was around 20-22% and the company said during the September quarter earnings call that its focus is now on acquiring new customers as well as upselling existing customers. . It is targeting 50% growth in upsells. Newgen said it is focusing on developing its capabilities in AI, GenAI and machine learning.
Around 12.30 pm, Newgen shares were trading at Rs 1,673, up 4.63 per cent on the NSE.
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