Shares of Newgen Software gained over 3% in early trade on November 29, following the announcement of a ₹32.45 crore contract awarded by the Reserve Bank of India (RBI). At 9:22 AM, the stock was trading 2% higher at ₹1,156. Despite a recent decline of 10% in November, Newgen Software's stock has surged by over 45% year-to-date, significantly outperforming the Nifty 50, which saw a 10% rise in the same period.
For those looking to buy shares online, this stock's movement reflects market enthusiasm about the new contract.
Details of the RBI contract
Newgen Software was awarded a ₹32.45 crore order, including 18% GST, to implement and maintain the Reserve Bank of India's Regulatory Application Management System (RAMS). This project is set to be executed over seven years. The contract adheres to the terms of the Request for Proposal (RFP) and is not categorised as a related party transaction under the Companies Act 2013.
Investors who frequently buy shares online can observe the potential long-term growth supported by this domestic deal.
Newgen Software's financial performance in the September quarter
For the September quarter, Newgen Software reported a consolidated net profit of ₹70.3 crore, up by 47% quarter-on-quarter (QoQ). Revenue from operations rose by 14.8% QoQ to ₹361.2 crore. On an annual basis, the company saw a 23% rise in revenue.
Despite strong quarterly results, the stock experienced an 8% drop following the Q2 FY25 earnings announcement. This decline may be attributed to the significant price run-up earlier this year. However, the recent RBI contract may attract those looking to buy shares online as the company diversifies its business offerings.
Newgen Software's business overview
Newgen Software is a global company providing software solutions for workflow automation, document management, and advanced imaging. The organisation focuses on delivering comprehensive technology-based services to businesses, positioning itself as a key player in its industry.
Investors interested in exploring opportunities to buy shares online often consider companies like Newgen Software for their advanced technology-driven solutions and steady financial growth.
Long-term implications of the RBI contract
The seven-year contract with the Reserve Bank of India is expected to contribute to Newgen Software's revenue stream and enhance its market presence in the regulatory and compliance technology domain.
For those planning to buy shares online, this deal signals Newgen Software's ability to secure large domestic projects, further strengthening its portfolio.
Share price movement and year-to-date growth
Newgen Software shares have shown a mixed performance over the past months:
Despite these fluctuations, the stock has gained over 45% year-to-date, highlighting strong overall performance. Investors planning to buy shares online can monitor such trends to assess the stock's long-term value potential.
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