NEWGEN - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 2.8
| Stock Code | NEWGEN | Market Cap | 6,262 Cr. | Current Price | 440 ₹ | High / Low | 1,379 ₹ |
| Stock P/E | 20.4 | Book Value | 103 ₹ | Dividend Yield | 1.14 % | ROCE | 27.8 % |
| ROE | 22.4 % | Face Value | 10.0 ₹ | DMA 50 | 566 ₹ | DMA 200 | 799 ₹ |
| Chg in FII Hold | -0.28 % | Chg in DII Hold | 0.10 % | PAT Qtr | 79.8 Cr. | PAT Prev Qtr | 76.7 Cr. |
| RSI | 35.0 | MACD | -35.6 | Volume | 8,50,931 | Avg Vol 1Wk | 25,61,832 |
| Low price | 434 ₹ | High price | 1,379 ₹ | PEG Ratio | 0.90 | Debt to equity | 0.03 |
| 52w Index | 0.57 % | Qtr Profit Var | -4.72 % | EPS | 20.0 ₹ | Industry PE | 20.8 |
Analysis: NEWGEN trades at 440 ₹, well below both its 50 DMA (566 ₹) and 200 DMA (799 ₹), reflecting strong bearish momentum. RSI at 35.0 suggests the stock is nearing oversold territory, while MACD (-35.6) confirms negative sentiment. The P/E of 20.4 is close to the industry average (20.8), indicating fair valuation. Fundamentals are decent with ROCE (27.8%) and ROE (22.4%), while debt-to-equity is very low (0.03), showing financial stability. However, quarterly PAT declined slightly (79.8 Cr. vs 76.7 Cr.), and volumes are weak compared to averages. Overall, NEWGEN is a weak swing trade candidate at present, with limited upside potential due to bearish technicals.
Optimal Entry Price: Around 430–440 ₹, near current support and oversold RSI zone.
Exit Strategy (if already holding): Consider exiting near 500–520 ₹ (resistance zone). Place a stop-loss around 420 ₹ to protect against downside risk.
✅ Positive
- Strong ROCE (27.8%) and ROE (22.4%) highlight efficiency.
- Debt-to-equity ratio of 0.03 indicates near debt-free status.
- EPS of 20.0 ₹ reflects consistent earnings.
- Dividend yield of 1.14% provides steady income.
⚠️ Limitation
- Stock trades far below both 50 DMA and 200 DMA, showing bearish trend.
- Weak technical indicators (RSI low, MACD strongly negative).
- Quarterly profit variation (-4.72%) shows slowing momentum.
- 52-week index at 0.57% indicates poor performance relative to highs.
📉 Company Negative News
- FII holdings decreased (-0.28%), showing reduced foreign confidence.
- Quarterly PAT decline signals weaker earnings momentum.
📈 Company Positive News
- DII holdings increased slightly (+0.10%), showing some domestic support.
- Strong fundamentals with high efficiency and low debt.
🏭 Industry
- Industry P/E is 20.8, making NEWGEN fairly valued.
- IT and software sector benefits from long-term demand but faces cyclical risks and valuation pressures.
🔎 Conclusion
NEWGEN shows decent fundamentals but weak technicals and declining profits, making it a poor swing trade candidate currently. Entry near 430–440 ₹ is safer, with exit around 500–520 ₹ if holding. Stop-loss at 420 ₹ is recommended. While debt-free status and efficiency provide support, bearish momentum and poor performance relative to highs limit short-term upside potential.