NEWGEN - Swing Trade Analysis with AI Signals
Last Updated Time : 20 Dec 25, 07:01 am
Back to Swing Trade ListSwing Trade Rating: 3.8
| Stock Code | NEWGEN | Market Cap | 11,812 Cr. | Current Price | 830 ₹ | High / Low | 1,799 ₹ |
| Stock P/E | 38.1 | Book Value | 104 ₹ | Dividend Yield | 0.60 % | ROCE | 27.8 % |
| ROE | 22.4 % | Face Value | 10.0 ₹ | DMA 50 | 892 ₹ | DMA 200 | 973 ₹ |
| Chg in FII Hold | -1.52 % | Chg in DII Hold | 0.12 % | PAT Qtr | 76.7 Cr. | PAT Prev Qtr | 48.7 Cr. |
| RSI | 36.3 | MACD | -19.9 | Volume | 1,39,682 | Avg Vol 1Wk | 2,14,538 |
| Low price | 740 ₹ | High price | 1,799 ₹ | PEG Ratio | 1.68 | Debt to equity | 0.03 |
| 52w Index | 8.50 % | Qtr Profit Var | 16.4 % | EPS | 22.0 ₹ | Industry PE | 26.4 |
📊 Based on the given parameters, NEWGEN shows strong fundamentals but weak technical momentum. The RSI (36.3) and negative MACD (-19.9) indicate bearish pressure, suggesting caution for immediate swing trades. However, the company’s profitability and low debt provide a margin of safety.
💡 Optimal Entry Price: Around 760–780 ₹ (near support zone, close to 52-week low).
🚪 Exit Strategy (if already holding): Consider partial exit near 890–920 ₹ (DMA 50 resistance) or full exit if price fails to sustain above 740 ₹.
Positive
- ✅ Strong ROCE (27.8%) and ROE (22.4%) indicate efficient capital use.
- ✅ Low debt-to-equity ratio (0.03) ensures financial stability.
- ✅ EPS of 22 ₹ with consistent quarterly profit growth (+16.4%).
- ✅ PEG ratio of 1.68 suggests reasonable valuation compared to growth.
Limitation
- ⚠️ High P/E (38.1) compared to industry average (26.4), indicating overvaluation.
- ⚠️ Current price (830 ₹) is below both DMA 50 (892 ₹) and DMA 200 (973 ₹), showing weak technical trend.
- ⚠️ Decline in FII holding (-1.52%) signals reduced foreign investor confidence.
- ⚠️ Volume lower than 1-week average, reflecting weak trading interest.
Company Negative News
- 📉 Weak momentum indicators (RSI & MACD) suggest near-term downside risk.
- 📉 Stock has corrected sharply from 1,799 ₹ high, showing volatility.
Company Positive News
- 📈 Quarterly PAT improved from 48.7 Cr. to 76.7 Cr., showing strong earnings momentum.
- 📈 Dividend yield of 0.60% adds shareholder value.
Industry
- 🏭 Industry P/E at 26.4 indicates sector is moderately valued compared to NEWGEN’s higher valuation.
- 🏭 Digital transformation and IT services sector remains in growth phase, supporting long-term demand.
Conclusion
🔎 NEWGEN is fundamentally strong but technically weak in the short term. It is a cautious swing trade candidate with entry near 760–780 ₹ and exit around 890–920 ₹. Long-term investors may hold due to strong ROCE/ROE and low debt, but swing traders should wait for confirmation signals before entry.
Would you like me to also add a peer benchmarking overlay comparing NEWGEN with other IT mid-cap stocks, or a sector rotation scan to see if capital is flowing into competing sectors?
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