Shares of Newgen Software Technologies extended their upward trend for the eighth consecutive session, surging around 30 percent in the period to scale a record high of Rs 997.40 on May 2.
The company's strong quarterly earnings and the management's upbeat growth outlook are the two key drivers fueling the bullish momentum in the stock.
At 12.56 pm, shares of Newgen Software were trading at Rs 977.35 apiece on the NSE.
In the January-March period, the software company's net profit grew by 54.2 percent sequentially to Rs 105.3 crore, surpassing the Rs 100 crore- mark for the first time ever.
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The firm also reported its highest ever quarterly revenue at Rs 375.3 crore in Q4, up 16 percent from Rs 323.6 crore clocked in the quarter prior.
The operational performance also improved on a sequential basis as the EBITDA margin swelled up to 33 percent in Q4, up from 24 percent in the quarter-ago period.
"We closed another good growth year in terms of revenues and profits with strong growth in India and Europe, the Middle East, and Africa (EMEA) markets. Our large customer base has been increasing, leading to strong growth in revenue per customer," said Diwakar Nigam, Chairman and Managing Director at Newgen Software Technologies.
Brokerage firm Jefferies was also impressed by Newgen's strong Q4 beat as it raised its price target for the stock by 7.5 percent to Rs 1,150 while retaining its 'buy' rating.
The brokerage attributed Newgen's strong Q4 growth to be driven by annuity and license sales. Jefferies also foresees a strong growth outlook for the company, led by core markets. "Strong growth visibility is likely to sustain premium valuations in the future," the brokerage added.
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