Multibagger stock shoots up 12% after Jefferies reiterates ‘Buy’
Newgen Software Technologies jumped over 12% on the NSE in Thursday's session after the global brokerage firm Jeffries reiterated a ‘Buy’ recommendation on the stock. The stock also hit its 52-week high of Rs 807.90. The US-headquartered brokerage has put a price target of Rs 860 per share.
The brokerage in a note said there is strong growth visibility in the company due to operations in the banking vertical. Jefferies has hiked FY2024-25 EPS estimates by 2-4% to reflect the Q1 beat and expects 23% EPS CAGR over FY 2023-25. Jefferies’ stance triggered strong buying action in the stock with nearly 30 lakh shares changing hands on the NSE at 10:50 am.
The traded value of the shares stood at Rs 2,278.18 crore around this time. Today’s rally was the second successive session of gains in the stock. Momentum indicators RSI and MFI shot up with day’s RSI at 69.1 while MFI in a strong overbought zone at 87.
Newgen provides a unified digital transformation platform with native process automation, content services, and communication management capabilities. The company reported a revenue of Rs 252 crore for the quarter ended June 30, 2023, which was up 34% YoY. The net profit for the reported quarter stood at Rs 30 crore, rising 57% YoY over the corresponding quarter of the previous financial year.
The multibagger stock has given more than 108% returns over the last 12-month period which is significantly higher than a 21% rise seen in the 50-stock Nifty. After plunging to a 52-week low of Rs 299.95 in December, the stock has rebounded strongly and appreciated over 160%.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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