NEWGEN.NS Stock Today, January 20: Labour Code Hit Sends Stock to 52-Week Low
The newgen share price tumbled on 20 January as investors reacted to weak quarterly earnings and a statutory cost hit. Shares of NEWGEN.NS fell 16.2% to ₹628.45, touching an intraday low of ₹617.55 on the NSE. Q3 profit declined about 29% year-on-year after a ₹35 crore one-time charge linked to India’s new labour codes, while revenue was flat near ₹400 crore. With India sales dipping and growth concerns rising, near-term sentiment for the newgen share price remains cautious.
Stock move and market reaction
The newgen share price slid to a fresh 52-week low, closing at ₹628.45 after opening at ₹739.25. Intraday low printed near ₹617.55. Volume spiked to 73,04,179 shares versus a 7,05,648 average, signaling strong supply. At today’s close, the stock sits about 63% below its 52-week high of ₹1,696.70, putting it well under its 50-day and 200-day averages.
The drop followed Newgen Software results that showed a profit contraction despite stable revenue. Investors focused on the ₹35 crore one-time labour code impact, pressure in India sales, and lack of topline growth. Management highlighted subscription momentum, but the street prioritized near-term earnings visibility, which weighed on the newgen share price and kept risk appetite low.
Q3 results: profit hit and flat revenue
Q3 net profit fell about 29% year-on-year to ₹63 crore, while revenue was roughly ₹400 crore. India sales declined, offset by steady international business, according to reports. Margins improved, but not enough to counter the earnings drop. These outcomes framed a mixed picture for the newgen share price as investors weighed resilient margins against limited growth.
Management cited a one-time ₹35 crore charge tied to India’s new labour codes, which dented profits in the quarter. Reports also flagged the narrative of subscription-led momentum and a healthy pipeline despite muted topline. See details here: source and source.
Technical picture and valuation check
Short-term indicators remain weak. RSI sits at 35.4, CCI at -202 suggests oversold, and Stochastic %K is 18.1. ADX near 11.6 indicates no strong trend yet. With the newgen share price below key moving averages, traders may watch ₹617–₹620 as near support and ₹665–₹680 as initial resistance zones if a technical bounce develops.
At today’s close, the stock trades near 32.2x TTM EPS of ₹22.87 and about 6.5x book value. Dividend yield is ~0.68%. Market cap is roughly ₹10,350 crore with low leverage and a strong current ratio. Valuation is not cheap against flat growth, which tempers enthusiasm around the newgen share price in the short term.
What investors should track next
We will watch clarity on the duration of the labour code impact, subscription deal conversions, and traction in India enterprise demand. Any sustained acceleration in large-client wins or cloud-led revenue could help rebuild confidence. Guidance granularity will be key for stabilizing the newgen share price after today’s selloff.
Potential catalysts include order inflows, margin sustainment post one-offs, and any pickup in domestic spending. On the technical side, closing strength above ₹680 could attract momentum buyers, while a breach below ₹617 risks fresh lows. Liquidity remains high, but traders should respect volatility when positioning around the newgen share price.
Final Thoughts
Today’s slide in the newgen share price reflects a clear message from the market: earnings visibility and growth matter more than one-off margin positives. Q3 profit fell about 29% year-on-year to ₹63 crore on a ₹35 crore labour code charge, with revenue flat near ₹400 crore and India sales under pressure. Technically, the stock is oversold and near new support around ₹617–₹620, but conviction will depend on improving topline trends and consistent execution. For investors, focus on subscription conversions, domestic demand recovery, and any update on statutory costs. Until growth re-accelerates, expect range-bound trade and event-driven moves in the newgen share price.
FAQs
Why did the newgen share price fall today?
The stock dropped after Newgen Software results showed a 29% year-on-year profit decline due to a ₹35 crore one-time labour code charge, while revenue stayed flat near ₹400 crore. Weak India sales and low growth visibility pushed investors to cut risk, sending the newgen share price to a new 52-week low.
What were the key Q3 numbers for Newgen Software?
Q3 net profit was about ₹63 crore, down roughly 29% year-on-year. Revenue was around ₹400 crore. Margins improved, but a ₹35 crore one-time labour code cost hurt earnings. India sales dipped, which offset gains elsewhere and kept the newgen share price under pressure after the announcement.
Is Newgen Software stock technically oversold now?
Short-term indicators suggest oversold conditions. RSI is near 35, CCI around -202, and Stochastic %K near 18. These readings can support a bounce, but trend strength is weak with ADX near 12. Traders should watch ₹617–₹620 as support and ₹665–₹680 as resistance for the newgen share price.
What should investors watch over the next quarter?
Track management commentary on subscription-led growth, deal closures, and India demand recovery. Monitor whether the labour code impact remains one-off and if margins hold. Order wins, revenue acceleration, and better domestic traction could steady sentiment and help the newgen share price recover from today’s low.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
