IT stock jumps receiving ₹14 Cr purchase order from Mercedes-Benz Financial Services

Synopsis: 
Newgen Software Technologies ltd has recently received a purchase order worth Rs. 14 crores from Mercedes-Benz Financial Services, a subsidiary of Mercedes-Benz Mobility AG.

This mid-cap company is engaged in designing and developing software products with delivering end-to-end software solutions across various industries such as Banking, Insurance and other enterprises were in focus after receiving a work order from Mercedes-Benz Mobility AG. 

With the market capitalization of Rs. 12,708 Crores, the shares of Newgen Software Technologies touched a high of Rs.897, up 2 percent from yesterday’s close of Rs 879 and trading at a P/E of 38.6 whereas, industry P/E stands at 25.5 and share price being at Rs.893. 

What is the News

Newgen Software Technologies has recently received and accepted  a Purchase Order from Mercedes-Benz Financial Services for delivering a Loan Management System. The total value of order amounts to ~Rs. 14 crores. The order is considered to be a domestic order and is valid for 5 years from the date of supply of licence.

The Company had recently bagged an international purchase order of worth Rs. 13.96 crores from one of the leading banks in Malaysia  to provide end-to-end project management services in relation to enterprise content management systems. 

Company Overview & Financial Highlights

Newgen Software Technologies Limited is into business from the past 3 decades, which is indulged in designing , developing and delivering the end-to-end software solutions whose client base present across various industries which includes Banking, Insurance, and other enterprises like Unified Customer View, Product Configuration, Tech & Project Management etc. The company billed over Rs. 50 million to 87 customers across different geographical locations which include USA, APAC, EMEA and India with 68 percent of the revenue contributed by the banking industry followed by insurance, healthcare and government 

Year-on-Year analysis: Newgen Software Technologies Limited’s revenue has shot up  from Rs. 361 crores  to Rs. 401 crores up 11 percent, operating profit increased by 22.9 percent, from Rs. 83 crores  to Rs. 102 crores and Net profit increased by 17.15  percent from Rs. 70 crores  to Rs. 82 crores 

Quarter-on-Quarter analysis:  Newgen Software Technologies Limited’s  revenue has shot up significantly on a quarterly basis from Rs. 321 crores to Rs. 401 Crores, up by 25 percent, operating profit up by 126 percent from Rs. 45 crores to Rs. 102 crores and net profit up by 64 percent from Rs. 50 crores to Rs. 82 crores.

Written by K G Vachan

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post IT stock jumps receiving ₹14 Cr purchase order from Mercedes-Benz Financial Services appeared first on Trade Brains.