NEWGEN - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.9
| Stock Code | NEWGEN | Market Cap | 7,069 Cr. | Current Price | 496 ₹ | High / Low | 1,379 ₹ |
| Stock P/E | 22.3 | Book Value | 115 ₹ | Dividend Yield | 1.01 % | ROCE | 26.2 % |
| ROE | 20.8 % | Face Value | 10.0 ₹ | DMA 50 | 500 ₹ | DMA 200 | 719 ₹ |
| Chg in FII Hold | -2.86 % | Chg in DII Hold | -0.83 % | PAT Qtr | 110 Cr. | PAT Prev Qtr | 79.8 Cr. |
| RSI | 57.1 | MACD | 6.44 | Volume | 12,63,994 | Avg Vol 1Wk | 42,17,519 |
| Low price | 401 ₹ | High price | 1,379 ₹ | PEG Ratio | 0.93 | Debt to equity | 0.02 |
| 52w Index | 9.75 % | Qtr Profit Var | 8.13 % | EPS | 20.0 ₹ | Industry PE | 21.1 |
NEWGEN shows fair potential for swing trading. The RSI (57.1) and MACD (6.44) suggest neutral-to-positive momentum. The current price (₹496) is near the 50 DMA (₹500) but well below the 200 DMA (₹719), indicating short-term stability but weak long-term trend. Fundamentals are decent with ROCE (26.2%) and ROE (20.8%), while valuation (P/E 22.3 vs industry 21.1) is fair. However, institutional selling (FII -2.86%, DII -0.83%) raises caution.
✅ Optimal Entry Price: Around ₹480–495, near 50 DMA support.
📤 Exit Strategy: If already holding, consider profit booking near ₹520–540, or exit if price falls below ₹470 support.
🌟 Positive
- Strong ROCE (26.2%) and ROE (20.8%) highlight efficient capital use.
- PEG ratio of 0.93 suggests fair valuation relative to growth.
- Quarterly PAT growth (₹110 Cr vs ₹79.8 Cr) shows improving profitability.
- Low debt-to-equity ratio (0.02) ensures financial stability.
⚠️ Limitation
- Stock trading below 200 DMA indicates weak long-term trend.
- Institutional selling (FII -2.86%, DII -0.83%) reduces confidence.
- 52-week index at 9.75% shows limited recovery from highs.
📰 Company Negative News
- Decline in institutional holdings signals reduced investor trust.
📈 Company Positive News
- Quarterly profit growth supports bullish sentiment.
- Dividend yield of 1.01% provides steady returns.
🏭 Industry
- Industry P/E at 21.1 shows NEWGEN trades at a slight premium (P/E 22.3).
- IT software and digital solutions sector remains resilient, driven by enterprise demand.
✅ Conclusion
NEWGEN is a fair candidate for swing trading with entry near ₹480–495 and exit around ₹520–540. Strong fundamentals and profit growth support upside potential, but weak long-term trend and institutional selling require cautious risk management. Suitable for short-term traders with disciplined stop-loss strategy.