Rudra gives a neutral rating to Newgen's IPO
Newgen Software Technologies is a software products company that offers a platform enabling organizations to rapidly develop powerful applications addressing their strategic business needs.
Its platform comprises of :-
- Enterprise Content Management (ECM)
- Business Process Management (BPM)
- Customer Communication Management (CCM)
The company is increasing its geographical footprint by adding more verticals beyond the core five verticals (banking, government, insurance, healthcare and business process outsourcing), which the company has and also by going deeper into existing verticals by offering new products to the clients.
But if we look into the company’s profitability it is declining, margins are low & Valuation is also not so attractive. Considering these factors, issue seems to be risky therefore we are NUETRAL for this IPO.