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Mint
05-08-2025
- Business
- Mint
Five IT stocks down up to 30% from 52-week highs. Is there a turnaround in sight?
The Nifty IT index remains at January 2022 levels, yielding zero returns in over three and a half years to investors. But individual stocks have fared much worse. Some of the biggest names in IT have taken a hit, dropping as much as 30% from their peaks. Is this fall just due to market jitters, earnings misses, shifting investor sentiment, or is it a sign of deeper trouble? Should you be looking for value when the market is worried? We break down the top 5 IT stocks that have taken a tumble and what it could mean for investors. Take a look… #1 Newgen Software Technologies First on the list is Newgen Software Technologies. It provides an enterprise-wide unified Low Code digital transformation platform, NewgenONE, designed to digitize content, automate processes, and enhance omnichannel customer engagement. The company's offerings include Contextual Content Services (ECM) with OmniDocs, Low Code Process Automation (BPM) with iBPS, and Omnichannel Customer Engagement (CCM) with OmniOMS. Newgen also incorporates advanced technologies such as artificial intelligence and machine learning for data science and intelligent document processing (IDP Studio) to streamline data-to-insights development and automate information extraction. The stock is down more than 50% from its 52-week high. Coming to its financial performance, the company has delivered a top-line growth of 24% CAGR over a 3-year period and a net profit CAGR of 24%. The last three-year ROE has been 22%. Looking ahead, Newgen Software Technologies' management is in investment mode for sales, marketing, and product development. Treating Q1 FY26 as an exception, the management stated that its overall aspiration is to accelerate the growth rate above its historical growth rates and that, over the long-term outlook, they do not foresee any change, expecting growth to remain in the high teens or low 20%. Regarding revenue and order book, management highlighted that Q1 FY26 revenues were impacted by softness in deal closures. It was observed that customers are taking more time and being cautious in decision-making and project starts, leading to lower funnel conversion than initially anticipated. While the deal pipeline is healthy, with a significant number of large deals, the concern is the closure of these large deals. The management anticipates that closure rates would gradually improve in the coming quarters, leading to improvement in overall growth in the second half of the year, and that annuity revenues will continue to pick up growth as projects close. There have been no reported deal cancellations that impacted the quarter. The company continues to invest in R&D (9% of revenues) as well as sales & marketing (26% of revenues). The net margin goal is around 20%. However, the management acknowledged that if growth falls substantially, margins would be affected, as the company is not currently poised to maintain margins at very low growth rates. Also Read: HCLTech's CEO is already the richest among top five IT peers—and his pay is rising further #2 Sonata Software This digital engineering company operates across four key verticals: Healthcare life sciences (HLS), banking financial services (BFSI), retail manufacturing, and technology, media and telecom. Its global presence spans five core geographies, including North America, UK, Europe, India, and Australia. Sonata Software invests in data, AI, and modernisation engineering capabilities, utilising differentiated IP, lightning tools, and robust offerings. The stock is down more than 45% from its 52-week high. Coming to its financial performance, the company has delivered a top-line growth of 22% CAGR over a 3-year period and a net profit CAGR of 4%. The last three-year ROE has been 31%. Looking ahead, the company's ambition for the next three to five years is industry-leading growth, particularly at the intersection of AI and modernisation. It aspires to be in the top quadrant of growth in the four industries it competes in. The company maintains a healthy, large deal pipeline, with 33% of it comprising Fortune 500 clients and 45% of the active pipeline consisting of large deals. For profit and margin trajectory, management indicated a potential one-quarter delay in returning to the earlier target of 20%+ EBITDA margin for international services but reiterated that recovery is on track. Furthermore, the company expanded its near-shore presence in Mexico and Malaysia, with both centres now employing more than 100 professionals. #3 Birlasoft Birlasoft is a leading global IT services and solutions provider, operating as a part of the multibillion-dollar CKA Birla Group. The company focuses on cloud, AI, and digital technologies, integrating domain expertise with comprehensive enterprise solutions. Its service offerings include digital and data, ERP, and infrastructure, catering to sectors such as manufacturing, BFSI (banking, financial services, and insurance), energy and utilities, and lifesciences and services. The stock is down more than 40% from its 52-week high. Coming to its financial performance, the company has delivered a top-line growth of 9% CAGR over a 3-year period and a net profit CAGR of 3%. The last three-year ROE has been 17%. Looking ahead, the company's endeavour is to maintain revenue growth, but there could be a minor decline in the short term. Growth is expected to return starting Q2FY26. For the full year FY26, Birlasoft's endeavour is to deliver better revenue performance than FY25, although it may be only slightly better due to existing headwinds. It expects the overall year total contract value (TCV) for FY26 to be better than FY25's TCV. The current discretionary/project-based business contributes about 70% of overall revenues. The endeavour is to reduce this to at least 50%, with a greater focus on multi-year annuity-based deals. #4 KPIT Technologies KPIT Technologies, a global technology company primarily focused on providing software solutions for the mobility sector. KPIT specialises in embedded software, AI, and digital solutions, utilising its extensive domain expertise to help clients accelerate the development and implementation of next-generation mobility technologies. Its work includes the development and realisation of software-defined vehicles (SDVs), electrification, advanced driver-assistance systems (AD-ADAS), body electronics, vehicle architecture, middleware, cloud-based connected services, intelligent cockpits, digital connected solutions, and diagnostics. The stock is down more than 35% from its 52-week high. Coming to its financial performance, the company has delivered a top-line growth of 34% CAGR over a three-year period and a net profit CAGR of 44%. The last three-year ROE has been 31%. Looking ahead, KPIT Technologies' management believes that any short-term uncertainties, such as those related to tariffs, are a matter of a quarter or two at most, and the conversion of orders into revenue is expected to accelerate thereafter. The management anticipates that transformative large engagements already secured will significantly contribute to revenue growth, specifically in the second half of FY26. Regarding the orderbook, KPIT has demonstrated consistent momentum, with deal closures progressively increasing QoQ, indicating a robust and growing pipeline. The management expects this strong deal pipeline to continue, with hopes for closure on at least one large deal in the current quarter and acceleration in the next couple of quarters as market conditions stabilise. #5 Tata Consultancy Services Tata Consultancy Services or TCS, a global IT services company, provides a broad spectrum of technology services and solutions, integrating expertise in deploying technology with contextual knowledge of enterprise data, business processes, industry strengths, and change management. The stock is down more than 30% from its 52-week high. Coming to its financial performance, the company has delivered a top-line growth of 10% CAGR over a 3-year period and a net profit CAGR of 8%. The last three-year ROE has been 50%. Looking ahead, the management said the international market will perform better in FY26 than in FY25 in constant currency terms, and that it's their aspiration to continue to drive growth, although it's a high bar to cross. Also Read: If TCS is truly preparing for the future, introspection must start in the C-suite Conclusion Just because a stock is down doesn't mean it's a bargain. Sometimes it's just broken and stays that way. The IT companies here are growing. Some are investing aggressively. Others are rebuilding. But the risk is that not all of them will come out stronger. Competitive pressure can be a catalyst. It forces companies to evolve, sharpen their edge, and come back better. However, the same pressure can expose weak business models, poor leadership, or over-reliance on legacy clients. That's how value picks quietly become value traps. So tread carefully. A falling stock price isn't a green light to invest. It's an invitation to investigate. Ask the question: Is this a temporary setback or a structural issue? Is the company gaining relevance or losing it? Smart investing is less about catching the bottom and more about knowing what you're actually buying. Therefore, it's important to conduct thorough research on financials and corporate governance before making investment decisions, ensuring they align with your financial goals and risk tolerance. Happy Investing. Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. This article is syndicated from
Hans India
17-07-2025
- Business
- Hans India
Newgen Software's net profit drops 54 pc sequentially, revenue falls 25 pc in Q1
New Delhi: Homegrown company Newgen Software on Thursday reported a sharp drop in its quarterly performance for Q1 FY26, with net profit falling by 54.11 per cent to Rs 49.72 crore from Rs 108.33 crore in the previous quarter (Q4 FY25). Revenue from operations also declined significantly, slipping by 25.4 per cent to Rs 320.65 crore compared to Rs 429.88 crore in the previous quarter, according to its stock exchange filing. The company's total income for Q1 FY26 stood at Rs 350.04 crore, down 21.16 per cent from Rs 444 crore in Q4 FY25. However, total expenses during the quarter fell slightly to Rs 285.93 crore, a 5.55 per cent decline from Rs 302.73 crore in the previous quarter. Investors reacted to the weak quarterly performance, as Newgen Software's share price dropped by Rs 64.30 or 5.89 per cent to Rs 1,027.10 during the intra-day session. The stock has also been under pressure over the past month, falling by 7.87 per cent in the last five days and by 16.09 per cent in the past month. On a year-on-year (YoY) basis, the company's performance showed only marginal improvement. Revenue rose by 2 per cent from the same quarter previous year (Q1 FY25) to Rs 320.65 crore, while net profit grew slightly by 4 per cent to Rs 49.72 crore from Rs 47.56 crore, as per its filing. However, EBITDA dropped by 6 per cent to Rs 45 crore, and EBITDA margins narrowed to 14 per cent from 15 per cent previous year. Newgen Software Technologies Limited is an Indian company that offers a digital platform called NewgenONE. This platform helps businesses automate their work from start to finish, manage documents and communication, and use smart AI features. It is a low-code platform, which means companies can easily create and launch apps on the cloud without needing a lot of coding. The main focus is on making processes faster, handling content efficiently, and improving how businesses connect with their customers.
Mint
25-06-2025
- Business
- Mint
IT slowdown? These five stocks haven't heard of it.
Think Indian IT is slowing down? Well, think again. While headlines continue to buzz about the challenges that old-age IT companies face, some agile players are far from reaching their peak. Forget the old image you have of IT companies – today's fastest-growing Indian IT firms are capitalising on the exploding demand for AI, cloud computing, cybersecurity, and overall digital transformation. We're not talking about the giants here. A mix ofagile mid-size players and innovative small caps are grabbing market share and growing revenue at breakneck speed. Without further ado, here are the five fastest-growing IT stocks in India. #1 Persistent Systems Persistent Systems is a global technology company that provides a range of software and technology services with a focus on AI-led, platform-driven digital engineering and enterprise modernisation. It leverages innovative platforms like SASVA, its AI-powered platform, to drive productivity and automation across the application development lifecycle. The company grew revenue at a compound annual growth rate (CAGR) of 28% over the past three years and net profit at a CAGR of 28%. The return on equity (ROE) over this period was 25%. The market aptly rewarded the company for this performance. Also read: Israel-Iran ceasefire takes the pressure off crude prices, but not Indian OMCs Looking ahead, Persistent Systems' management is optimistic about sustaining progress to touch $2 billion of annual revenue by FY27. This is an aspiration rather than a firm guidance but the company is well on its way. In terms of profitability and margins, Persistent Systems has an aspirational target of improving its operating margins by 2-3% as it approaches the $2 billion revenue target by FY27. Key levers for margin expansion include maintaining high utilisation that could remain elevated during periods of uncertainty, and pricing levers to gain incremental revenue benefits. Strategically, the company is deeply focused on AI-led transformation. #2 Newgen Software Technologies Newgen Software Technologies provides an enterprise-wide unified low code digital transformation platform, NewgenONE, that's designed to digitise content, automate processes and enhance omnichannel customer engagement. The company's offerings include contextual content services (ECM) with OmniDocs, low code process automation (BPM) with iBPS, and omnichannel customer engagement (CCM) with OmniOMS. Newgen also incorporates artificial intelligence/machine learning for data science and intelligent document processing (IDP Studio) to streamline data-to-insights development and automate information extraction. Recently, Newgen launched genAI-powered AI agents such as LumYn (growth intelligence), Harper (conversion intelligence), and Marvin (productivity), focusing on leveraging AI to boost productivity, decision quality, and employee engagement. The company has delivered a top-line growth of 24% CAGR over the past three years period and net profit growth of 25% CAGR. The ROE averaged 22% over this period. The company expects to maintain its growth momentum in the coming year, aiming to surpass its historical growth rates, which have consistently been around 20%. License revenues, which saw a 41% YoY growth in FY25, are expected to generate further downstream annuity revenues. While the annuity revenue mix temporarily decreased due to delays in large deals, management expects to restore a healthy annuity growth rate by Q3-Q4 of FY26, as these larger projects reach completion and support revenues begin to kick in. In terms of profits and margins, Newgen typically operates in a higher growth mode, front-loading costs, and expects margins to expand if revenue growth surpasses 20%. Conversely, if growth falls below 17-18%, margins might flatten or contract. Management is confident in managing margins and does not foresee a significant challenge unless there is an unexpected dip in revenue. #3 Latent View Analytics Latent View Analytics is focused on providing data and analytics services. In terms of technology and innovation, it has made significant strides in GenAI and Agentic AI, which accounted for 8-10% of its total work in the past year, with expectations that it will rise to 16% of confirmed and open opportunities in the coming year. The company has delivered a top-line growth of 28% CAGR over the past three years and a net profit CAGR of 16%. The ROE has averaged 13%. Also read: Why dining tables aren't on Trent's menu LatentView Analytics' management aimed to double revenue from $100 million to $200-220 million in the next three years. For FY26, the company has good visibility for 18-19% revenue growth. Management reported that the current book of confirmed work plus high-probability extensions already exceeds $100 million, which is more than its revenue from the previous financial year, providing a strong base for its FY26 growth projections. LatentView aims to maintain the Ebitda margin at 23% for FY26. The long-term expectation is that once the company hits $200 million of revenue, Ebitda margins should be higher than 25%. #4 Nucleus Software Exports Nucleus Software Exports is a software company that specialises in providing enterprise software. Its core offerings include products for retail lending and transaction banking. The company is developing AI-enabled product innovations across all product lines. It's embedding AI into the day-to-day work of its engineers rather than building it as a separate, out-of-box solution. The company serves financial institutions, including both tier-1 and t-2 banks. It has a strong market presence in the Middle East, where seven of the top 10 banks are its customers. It also operates in Australia. Nucleus Software is strategically focused on North America for a very specific line of business, lending platforms, and is building traction in this market. The company delivered top line growth of 19% CAGR over the past three years and a net profit CAGR of 84%. The ROE averaged 22% over this period. Nucleus Software has a pending order book exceeding ₹60 crore. While the services portion of this order book is not known, 14-15% of its revenue typically comes from services. It's also exploring opportunities in emerging markets. #5 Accelya Solutions India Accelya Solutions India, specialises in providing passenger solutions in the area of settlement services, which revolves around passenger revenue accounting. It also offers audit services and industry services. The company's flagship product for these services is Revera. It offers its solutions through three models: license, hosted, and fully managed or outsourced services. Over the years, there has been a deliberate shift away from the licence model, with the primary focus now on generating recurring revenues from hosted (SaaS model) and outsourced (BPO) services. The company has delivered top line growth of 21% CAGR over the past three years and a net profit CAGR of 40%. The ROE has averaged 18% over this period. Also read: Sunteck Realty readies recipe for a strong FY26 even as shares await a rebound The company's "next big wave" is expected from the airline industry's transformation towards a "one order" model, in which airlines will operate like modern retailers. This shift is expected to create substantial demand for order accounting, which Accelya Solutions India is investing in and developing products for, positioning itself as the back-end fulfillment for these bundled orders. The company is pursuing pilot customers for this order accounting solution. Growth is also directly linked to increases in airline passenger volumes. As a significant portion of the company's revenue from hosted (SaaS) and outsourced (BPO) services is transactional and thus proportional to airline activity. Low-cost carriers (LCCs) are also a potential growth area if they too adopt NDC and order accounting. The company benefits from operating leverage due to its heavy investments in intellectual property (IP) and products, meaning costs do not increase linearly with revenue. This is the reason for its high Ebitda margins, which have been around 43-44% for the past few years. Conclusion India's IT landscape is evolving rapidly and these five high-growth players are at the forefront of that transformation. Whether it's AI-driven platforms, cloud-native solutions or deep analytics capabilities, these firms are not just keeping pace, they're defining the future. But while the growth potential is exciting, remember that such high-growth stocks often come with higher volatility. Therefore, it's important to conduct thorough research on financials and corporate governance before making investment decisions, ensuring they align with your financial goals and risk tolerance. Happy investing! Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. This article is syndicated from
Channel Post MEA
11-06-2025
- Business
- Channel Post MEA
Newgen Recognised By Forrester
Newgen Software has announced its inclusion among 'Notable Vendors' in Forrester's The Digital Process Automation Software Landscape, Q2 2025 report, authored by Craig Le Clair et al. The Forrester report defined DPA software as 'platforms that develop process applications with low-code and advanced programming principles with modeling, orchestration, dynamic case management, and AI-led support.' The report emphasised the importance of understanding the value leaders can expect from a DPA vendor and investigating options based on size and market focus in the digital process automation space. Newgen's top three extended use cases were self-identified as customer self-service, document automation, and data-driven automation. Commenting on the recognition, Runki Goswami, Global Head of Marketing at Newgen, said: 'Automation today isn't just about faster processes it's about enabling smarter, adaptive ways of working. At Newgen, we're combining low-code, AI, and years of process automation expertise to help enterprises modernise with purpose. With our AI-first NewgenONE platform, we're empowering enterprises to adapt faster and drive measurable, end-to-end impact.' NewgenONE is a unified, AI-first, low-code digital transformation platform that is purpose-built for digital process automation across complex enterprise environments. The platform integrates low-code development, intelligent orchestration, and GenAI-led capabilities to automate processes, manage content, and enhance communications from a single, cohesive framework. With embedded AI agents like NewgenONE Marvin, LumYn, Harper, and domain-specific innovations, Newgen empowers citizen and professional developers to rapidly model, deploy, and scale adaptive, end-to-end automation that drives agility, efficiency, and business transformation.
Zawya
11-06-2025
- Business
- Zawya
Newgen recognised in digital process automation software landscape, Q2 2025
Dubai, United Arab Emirates: Newgen Software, a global provider of an AI-first digital transformation platform, announced its inclusion among 'Notable Vendors' in Forrester's The Digital Process Automation Software Landscape, Q2 2025 report, authored by Craig Le Clair et al. The Forrester report defined DPA software as ' platforms that develop process applications with low-code and advanced programming principles with modeling, orchestration, dynamic case management, and AI-led support.' The report emphasised the importance of understanding the value leaders can expect from a DPA vendor and investigating options based on size and market focus in the digital process automation space. Newgen's top three extended use cases were self-identified as customer self-service, document automation, and data-driven automation. Commenting on the recognition, Runki Goswami, Global Head of Marketing at Newgen, said: 'Automation today isn't just about faster processes it's about enabling smarter, adaptive ways of working. At Newgen, we're combining low-code, AI, and years of process automation expertise to help enterprises modernise with purpose. With our AI-first NewgenONE platform, we're empowering enterprises to adapt faster and drive measurable, end-to-end impact.' NewgenONE is a unified, AI-first, low-code digital transformation platform that is purpose-built for digital process automation across complex enterprise environments. The platform integrates low-code development, intelligent orchestration, and GenAI-led capabilities to automate processes, manage content, and enhance communications from a single, cohesive framework. With embedded AI agents like NewgenONE Marvin, LumYn, Harper, and domain-specific innovations, Newgen empowers citizen and professional developers to rapidly model, deploy, and scale adaptive, end-to-end automation that drives agility, efficiency, and business transformation. Forrester does not endorse any company, product, brand, or service included in its research publications and does not advise any person to select the products or services of any company or brand based on the ratings included in such publications. Information is based on the best available resources. Opinions reflect judgment at the time and are subject to change. For more information, read about Forrester's objectivity here. About Newgen Software Newgen is the leading provider of an AI-first unified digital transformation platform with native process automation, content services, customer engagement, and AI/ML capabilities. Globally, successful enterprises rely on Newgen's industry-recognised low-code application platform to develop and deploy complex, content-driven, and customer-engaging business applications on the cloud. From onboarding to service requests, lending to underwriting, and for many more use cases across industries, Newgen unlocks simple with speed and agility. For more details, visit
