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Tera Software Ltd (TERASOFT)

Share Analysis – Quality, Valuation Zone, Price Trend & DeciZen Rating BSE: 533982 NSE: TERASOFT IT - Software | Small Cap | Tera Software Share Price

₹447.10 0.00 (0.00%)

As on 04-Jun'26 16:59

Tera Software Ltd (TERASOFT)

Share Analysis – Quality, Valuation Zone, Price Trend & DeciZen Rating BSE: 533982 NSE: TERASOFT IT - Software | Small Cap | Tera Software Share Price

₹447.10 0.00 (0.00%)

As on 04-Jun'26 16:59

Key Metrics
Valuation Multiples
Market Cap
₹559 Cr.
Current Price
₹447.1
52-Week Low / High
₹259 / 599
TTM EPS
₹19.8
TTM Sales
₹238 Cr.
Book Value per Share
₹116.7
P/E Ratio
22.55
Lower than its 5-year historical median
Industry PE
22.2
Price to Book (P/B)
3.83
Higher than its 5-year historical median
Price to Sales (P/S)
2.35
Higher than its 5-year historical median
EV/EBITDA
14.61
Higher than its 5-year historical median
Dividend Yield
0.54%
Profitability Efficiency
Return on Equity (ROE)
8.02%
Outperforms industry median
Return on Capital Employed (ROCE)
11.25%
Outperforms industry median
Return on Assets (ROA)
4.53%
Operating Profit Margin
11.4%
Net Profit Margin
8.75%
Gross Profit Margin
11.7%
Growth Momentum
1-yr vs 3-yr growth
Sales Growth (1 Year)
Improving versus 3-year growth rate
27.41%
Operating Profit Growth (1 Year)
Improving versus 3-year growth rate
74.08%
Net Profit Growth (1 Year)
-
140.31%
Asset Quality
Promoter Holding
47.53%
Pledged shares (%) of Promoter's holding (%)
19.88%
Reserves
₹133 Cr.
Equity
₹12.5 Cr.
Face Value
₹10
All Time Low / High
₹4.44 / 598.60

Tera Software stock performance

Key Ratios
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Check Before You Invest

Valuation

Overvalued

Price Trend

Strong
Q.1 Is Tera Software Ltd a good quality company?
Tera Software Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

How does Tera Software Ltd performance compare with that of its Peers?
Q.1 Revenue growth of Tera Software Ltd vs industry peers?
Tera Software Ltd revenue CAGR is -16.74%, compared to the industry median CAGR of 2.48%, indicating slower growth and losing its market share.
Q.1 Promoter shareholding and pledge status of Tera Software Ltd?
Promoters hold 47.53% of the Tera Software Ltd, with 19.88% of their stake pledged, indicating high pledge risk.
Q.1 Stock return of Tera Software Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 14.6% based on the current price.

10 Year X-Ray :

Analysis of Financial Track Record (Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end)

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Tera Software Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25TTM
ROCE % 15.9%17.8%6.8%9.3%13.2%6.7%6.5%10.1%6.8%11.3%-
Value Creation
Index
0.10.3-0.5-0.3-0.1-0.5-0.5-0.3-0.5-0.2-

Growth Parameters

Sales 17227114617626916112713184.5108238
Sales YoY Gr.-57.2%-46.2%21.1%52.4%-40.3%-20.9%2.9%-35.4%27.4%-
Adj EPS 6.28.61.32.95.50.6-0.9-9.13.97.619.8
YoY Gr.-39.6%-85.4%133.3%88.1%-89.5%-258.6%NANA92.1%-
BVPS (₹) 61.677.678.981.98786.885.886.289.997.9116.7
Adj Net
Profit
7.710.81.63.76.90.7-1.2-11.44.99.525
Cash Flow from Ops. 33.6-15.6-3.6-10.613.8-36.9-21.245.5-2.86.8-
Debt/CF from Ops. 1.3-2.9-12.2-4.82.1-1.5-2.90.5-11.82.9-

CAGR

9 Years 5 Years 3 Years 1 Years
Sales -5.1%-16.7%-5.4%27.4%
Adj EPS 2.3%6.5%NA92.1%
BVPS5.3%2.4%4.5%8.9%
Share Price 18.2% 57.5% 113.3% 68.7%

Key Financial Parameters

Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25TTM
Return on
Equity %
10.412.41.63.76.50.7-1.1-10.64.58.118.5
Op. Profit
Mgn %
10.87.36.77.26.54.76.5-8.48.411.415.4
Net Profit
Mgn %
4.541.12.12.60.5-0.9-8.75.88.810.4
Debt to
Equity
0.60.50.50.50.30.50.60.20.30.20.1
Working Cap
Days
326226384313290586691534668563165
Cash Conv.
Cycle
15484187166-730-1,524-1,614-822-286-45367

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Sales17227114617626916112713184108
Operating Expenses > + 1542511361642521531191427795
Manufacturing Costs1111110000
Material Costs951677290920300
Employee Cost 23272626342214181918
Other Costs > 355638472071281041225977
Operating Profit > 192010131778-12712
Operating Profit Margin (%) 10.8%7.3%6.7%7.2%6.3%4.7%6.3%-8.9%8.4%11.4%
Other Income > + 36243332744
Exceptional Items > 00000000-1-0
Interest > 77789912634
Depreciation > 3233110000
Profit Before Tax > 121726102-19612
Tax > 4612310523
Profit After Tax 8112471-1349
PAT Margin (%) 4.5%4.0%1.1%2.1%2.4%0.5%-1.0%2.7%4.6%8.8%
Adjusted EPS (₹)6.28.61.32.95.20.7-1.02.83.17.5
Dividend Payout Ratio (%)19.50%0%0%0%0%0%0%0%0%13.30%

Valuation of Tera Software - Standalone

YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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Analyst's Notes

data not found
No data found!

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25

Equity and Liabilities

Shareholders Fund + 779799102109109107108112122
Share Capital 13131313131313131313
Reserves 6585869096969595100110
Debt +43464451295561243320
Long Term Debt0111234551
Short Term Debt43454350285156192819
Minority Interest0000000000
Trade Payables7358324815610681464251
Others Liabilities 199106182622171718
Total Liabilities 213210185207312295271194205211

Fixed Assets

Net Fixed Assets +12363432313130272727
Gross Block751021021031031031031004646
Accumulated Depreciation63666871727273731919
CWIP 2000000000
Investments 0000000000
Inventories861211433000
Trade Receivables150141116136168197183128124136
Cash Equivalents 2981013161410162010
Others Assets 11191216935145243338
Total Assets 213210185207312295271194205211

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Cash Flow From Operating Activity + 34-16-4-1114-37-2145-37
PBT 121726102-19612
Adjustment 86-3-03-3-115743
Changes in Working Capital 17-32-2-145-34-9-26-14-8
Tax Paid -3-6-1-3-4-2-062-0
Cash Flow From Investing Activity + 2100111311
Capex -1-2-0-0-00030-0
Net Investments 0000000000
Others 3301111011
Cash Flow From Financing Activity + -8-6514-123417-306-17
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing -200002101-4
Interest Paid -7-77798116-3-4
Dividend Paid -1-200000000
Others 22-26-22235-379-9
Net Cash Flow 28-21233-2-4194-10

Financial Ratio

PARTICULARSMar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24Mar'25
Ratios
ROE (%)10.412.371.613.666.180.78-1.23.223.568.02
ROCE (%)15.9417.786.829.313.216.696.4710.086.7911.25
Asset Turnover Ratio0.931.280.740.91.040.530.450.560.420.52
PAT to CFO Conversion(x)4.25-1.45-2-2.752-37N/A15-0.750.78
Working Capital Days
Receivable Days289196.30322.30260.70206.20415546.40434.60544.80441.40
Inventory Days9.409.6022.9023.60107.707.9040.400
Payable Days196.50142.90228.20161.204,088.20008,861.4000

Management X-Ray

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *18.2018.2018.2018.2018.2018.2018.2018.2021.6519.88
* Pledged shares as % of Promoter's holding (%)

Top 5 Mutual Funds Holding

Last Visited Stocks

Announcements

Tera Software Ltd FAQs

The current trading price of Tera Software on 04-Jun-2026 16:59 is ₹447.1.

Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 03-Jun-2026 the market cap of Tera Software stood at ₹559.4 Cr

The latest P/E ratio of Tera Software as of 03-Jun-2026 is 22.55.

The latest P/B ratio of Tera Software as of 03-Jun-2026 is 3.83.

The 52-week high of Tera Software is ₹598.6 and the 52-week low is ₹259.4.

The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Tera Software is ₹238 ( Cr.) .

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Tera Software Ltd is a below average quality company.

The key valuation ratios of Tera Software Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of Tera Software Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

About Tera Software Ltd

Tera Software was founded in 1994; it went public in the year 2000. The company provides complete solutions from proof of concept to wide area replication in many e-governance verticals like education, registration, utilities, transportation, health, distribution, administration, co-operatives and agri-marketing; total turnkey system integration and networking solutions for banks, PSUs, defence, and research organizations.

IT-enabled services include data entry, data capture and processing scanning, digitization and document management GIS/GPS services, and BPO services, software development and consultancy undertaking e-business application development using the web as a preferred platform for IT solutions.

The BPO facilities are located in Hyderabad offering in-bound and out-bound services, scanning services to GVK industries, election data processing work for the Election Commission of Andhra Pradesh, and WAN solutions for newspapers like Udayam (Telugu), Guardian (English).

Strategic partnerships are in place with companies like HP, IBM, Wipro, Cisco and EMC.

The registered office of the company is located at 8-3-1113/2B, Kesava Nagar, Srinagar Colony, Hyderabad 500073, Andhra Pradesh.

Business area of the company

The company is a provider of integrated IT solutions.

Achievements

  • Some prestigious orders bagged include the Kerala State Road Transport Authority (KS RTA) contract in consortium with Electronics Corporation of India for complete automation of the department, including design and maintenance for a period of three years valued at Rs 480 million.
  • An order from the Civil Supplies Department, Government of Andhra Pradesh for capturing beneficiary information and printing of biometric ration cards valued at Rs 120 million.
  • An order from the Directorate of Education for computerization in the high schools and higher secondary schools for the state of Goa valued at Rs 90 million and was in November 2007 empanelled to provide IT services to the government sector through National Informatics Centre Services Inc, a Government of India enterprise.

Clientele

  • National Remote Sensing Agency
  • Hospital Services Corporation Consultancy
  • Indian Railways. 
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