India's Newgen Software slumps after Jefferies' double downgrade

Newgen Software Technologies

21/01/2025 07:16

** Shares of Newgen Software Technologies  NEWG.NS  fall 16.6%
to 1,304 rupees, set for their worst day since October 2019
    ** Stock extends losses after 1% drop on Monday when
reported Q3 rev growth at a nearly 3-year low
    ** Jefferies downgrades IT firm by two notches to
"underperform" from "buy" after rev missed brokerage's estimates
by 6%
    ** Says slowing annuity rev growth, which forms more than
55% of overall revenue, is a worry
    ** Adds current valuations not "favourable" and cuts PT to
1,240 rupees from 1,500 rupees
    ** Avg recommendation of three analysts tracking stock
slumps to "sell" from "buy" after Jefferies' revision - LSEG
    ** More than 2 mln shares traded, 3.7x the 30-day avg volume

(Reporting by Nandan Mandayam in Bengaluru)
((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))