No doubt they should do well in coming quarters.
Problem with new name it takes several quarters before it catches interest of big institutions.
Keeping hawk eye on this company and upcoming profits.
Can be a great story yet to play out.
Disclaimer: Invested since lower levels.
Why Promoter decreased holding with such a big percentage?
This is exchange of promotor hand with foreign promotor.
Promoters sold a large chunk to big institutional investors namely Abu Dhabi Investment Authority, Ashoka India Opportunities Fund and Kuber India Fund.
When asked, Diwakar Nigam (MD) cited ‘low liquidity in the stock’ as the reason to sell on the advice of Investment Bankers.
Its contradictory, I think after selling stake stock volumes went down further.
Saw one recent report on newgen in edelweiss
Does any one did comparitive study between ramco systems, intellect design
Disc : No holding
Bonus, split etc to cater low liquidity I can understand, “stock sell by promoters to increase liquidity in stock”, is absurd. If they really wanted to do then promoters could have done preferential issue to big whales, completely understandable. Promoter selling citing reason of low liquidity that too on advice of IBs, unable to digest here. Though stock looks good on chart right now.
Disc: Not Invested But Tracking. Will look for opportunities.
Disc Update: added some as tracking position.
Quarter ended 31st December 2021 Result
Presentation: https://www.bseindia.com/xml-data/corpfiling/AttachLive/ada06b09-3a43-4948-bf20-4e29f242e419.pdf
Annuity revenues growth , subscription growth are the ones that I want to watch out and it looks steady for sure. I am also excited by the emphasis on Low code process automation (hope it goes to no code since that is the way the innovation is happening)…
PS - invested…and like the last qtr results day, the stock is seeing a bit of dip. To me, the results look good, at first glance
ICICI Securities has add call on Newgen Software Technologies with a target price of Rs 700
Read more at:
Disc Invested
Number Theory now becomes a subsidiary of Newgen. This should bring in AL/ML synergies over Newgen’s current offerings.
Low code offers limited customisation. No code offers no customisation.
A simple article to understand low-code and its applicability: -
Low code does not necessarily mean low cost or better efficiency. I have been in IT for 16 years now and I have not seen one low code / no code enterprise level solution that is worth talking about. If anything traditional software is simply repackaged and sold as having AI/ML, low code / no code, chatbot, OCR (among other buzz words) capabilities. The costs of making them work are still relatively high and is also very cumbersome. Companies end up paying high license costs in addition to maintaining an army of IT consultants to support these solutions, with little or no business value to show. I do not deny these are promising technologies but I believe we still have a long way to go to determine if these are really workable. I am still a skeptic though, as I believe the key to good software development is to identify a great business idea and then design and implement the solution well. The underlying software doesn’t matter all that much - I have seen software written in COBOL that still runs critical business applications managing hundreds of millions of dollars and applications written using state of the art digital technology fall flat on its face.
I find this company having consistent performance. good Sales YOY , Profit YOY but its PEG still stays below 1. Am I missing something or is this really undervalued?
A good article on shift toward low-code/no-code platforms:
Link for the same
As per this article:
According to Gartner, low-code application development will account for over 65% of application development activity by 2024.
According to NASSCOM, the global LC/NC Industry is expected to grow at a CAGR of 28.1% from 2021 to 2025.
