Newgen Software shares slump 48% YTD; time to buy or wait?

Shares of Newgen Software Technologies Ltd jumped 7.95 per cent on Thursday to touch an intraday high of Rs 929. However, the stock gave up more than half of its gains during the session and closed 3.77 per cent higher at Rs 887.35. Despite the day’s uptick, the counter is still down 48.04 per cent so far in 2025.

On the earnings front, the company posted a consolidated net profit of Rs 49.72 crore for the April–June 2025 quarter, marking a 4.5 per cent year-on-year (YoY) increase from Rs 47.57 crore. Sequentially, however, profit fell 54 per cent from Rs 108 crore in Q4 FY25.

Analysts have mixed views on Newgen Software. Some recommend buying on dips for the long term. Key support levels are around Rs 880–840 and Rs 850–854, while resistance is seen at Rs 950, Rs 980 and Rs 912. A move above these levels could take the stock to Rs 994–1,080, but falling below support may push it down to Rs 800.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, noted that Newgen Software has attracted renewed buying interest after hitting recent lows, suggesting that investors with a high-risk appetite and a long-term view could consider adding the stock on dips.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, “Newgen Software has witnessed consistent buying for the second week after slipping into the oversold zone. Sustained buying above Rs 950 could trigger fresh long positions, targeting Rs 1,050 in the near term. On the downside, multiple supports lie between Rs 880 and Rs 840.”

Drumil Vithlani, Technical Research Analyst at Bonanza, remarked, “Although the stock has bounced from the Rs 854 support zone, the overall trend remains negative unless it crosses Rs 912. Investors holding positions may continue with a stop loss at Rs 900 on a closing basis. A breakout above Rs 912 could drive the stock towards Rs 994 and then Rs 1,080, while a breach below Rs 854 could see it slide to Rs 800.”

Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi, pointed out that, “Immediate support is near Rs 850 and resistance at Rs 980. A breakout above Rs 980 may push it to Rs 1,000, while in the short term, it is likely to trade between Rs 850 and Rs 1,000.”

Newgen is a provider of a unified digital transformation platform (NewgenONE) for automating the end-to-end process and comprehensively managing content and communications, backed by artificial intelligence (AI)-based cognitive capabilities, governance and a robust integration ecosystem. The core products of NewgenONE are Contextual Content Services (ECM), Low Code Process Automation (BPM), Omnichannel Customer Engagement (CCM) and Artificial Intelligence Cloud.