Hello @amitvohra
Firstly : You cannot factor PE for a SAAS based company in first place. You need to factor EV/EBITDA.
Disclaimer : This is for educational purpose and whatsoever discussed in my thread is not a buy or sell recommendation.
I have exited the stock recently even though that they have 2 good runways for Q3,Q4.
Reason being :
- US Bonds are all time high also contrary there is inflation, to tackle inflation they need to raise interest rate – now they are at about 5.25 – 5.50% – I don’t know how this hold up and decrease inflation.
- During covid – US banks there has been good number of lending activities in the banking system that will soon turn up good or bad either in what terms of %NPA nad GNPA in numbers – we need to watch
- I would wait and watch since NEWGEN is mostly on BFSI & GSI and catering to US – am bit cautioned, i wont take risk too much.
There are multiple variable can play out maybe am wrong as well too but i like to stick within my framework.
- First one being Economic situation
2 Being company
My preferred picks for long are among : Pharma | Chemicals – that would have certainty of cash flow + structured growth.
Sometimes I do go out looking for opportunities on short run say
NEWGEN | E2E
| Subscribe To Our Free Newsletter |
