Tera Software Limited (IN:TERASOFT)
:TERASOFT
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Tera Software Limited
(TERASOFT)
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Rating:60Neutral
Price Target:
₹334.00
▼(-24.27% Downside)
Action:ReiteratedDate:01/24/26
The score is supported primarily by improving financial performance (profitability and revenue growth, with a steadier balance sheet), but is held back by weak technicals (clear downtrend with bearish momentum) and a relatively high P/E with limited dividend support.
Positive Factors
Revenue Growth & Profitability
Sustained ~27% revenue growth alongside improved gross and net margins indicates durable demand for the company’s services and better cost/pricing dynamics. This supports expanding scale and reinvestment capacity over the next 2–6 months, improving earnings resilience.
Negative Factors
Operating Margin Volatility
Material swings in EBIT/EBITDA margins reduce predictability of core earnings and make budgeting, investment prioritization and margin-driven financing decisions harder. Persistent volatility can erode investor and creditor confidence over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth & Profitability
Sustained ~27% revenue growth alongside improved gross and net margins indicates durable demand for the company’s services and better cost/pricing dynamics. This supports expanding scale and reinvestment capacity over the next 2–6 months, improving earnings resilience.
Read all positive factors
Tera Software Limited (TERASOFT) vs. iShares MSCI India ETF (INDA)
Market Cap
₹3.96B
Dividend Yield0.23%
Average Volume (3M)4.52K
Price to Earnings (P/E)19.6
Beta (1Y)0.90
Revenue Growth71.84%
EPS Growth138.63%
CountryIN
Employees899
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)5.09
Shares Outstanding12,511,875
10 Day Avg. Volume2,246
30 Day Avg. Volume4,519
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)1.93
Price to Sales (P/S)2.20
P/FCF Ratio35.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Tera Software Limited Business Overview & Revenue Model
Company Description
Tera Software Limited provides IT and integrated related products and services worldwide. It operates through Integrated Solutions Division, Technical Division, and Projects Division segments. The company offers its services in various categories,...
How the Company Makes Money
Tera Software Limited generates revenue primarily through its e-governance projects, which involve providing IT solutions and services to government organizations for streamlining their operations. This includes system integration services, softwa...
Tera Software Limited Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
68
Positive
Cash Flow
62
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.62B | 1.07B | 844.83M | 1.17B | 1.27B | 1.61B |
| Gross Profit | 865.39M | 888.07M | 658.40M | 258.23M | 107.20M | 125.33M |
| EBITDA | 277.05M | 163.01M | 92.63M | 152.94M | 86.48M | 82.83M |
| Net Income | 162.98M | 94.15M | 34.41M | 34.66M | -13.02M | 8.43M |
Balance Sheet | ||||||
| Total Assets | 2.90B | 2.13B | 2.07B | 1.97B | 2.74B | 2.98B |
| Cash, Cash Equivalents and Short-Term Investments | 829.94M | 217.65M | 202.89M | 160.08M | 100.41M | 137.74M |
| Total Debt | 289.37M | 199.27M | 334.59M | 241.53M | 605.42M | 546.15M |
| Total Liabilities | 1.56B | 908.60M | 948.31M | 893.93M | 1.67B | 1.90B |
| Stockholders Equity | 1.34B | 1.22B | 1.12B | 1.08B | 1.07B | 1.09B |
Cash Flow | ||||||
| Free Cash Flow | -97.37M | 67.35M | -50.26M | 325.27M | -212.41M | -368.82M |
| Operating Cash Flow | -72.93M | 68.10M | -48.76M | 327.62M | -212.41M | -368.82M |
| Investing Cash Flow | -22.31M | 6.27M | 6.55M | 32.33M | 5.37M | 11.65M |
| Financing Cash Flow | 54.12M | -173.24M | 64.48M | -300.27M | 169.72M | 336.30M |
Tera Software Limited Technical Analysis
Negative
441.05
Price Trends
378.54
Negative
430.09
Negative
390.59
Negative
Market Momentum
-20.31
Positive
37.83
Neutral
14.57
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TERASOFT, the sentiment is Negative. The current price of 441.05 is above the 20-day moving average (MA) of 345.23, above the 50-day MA of 378.54, and above the 200-day MA of 390.59, indicating a bearish trend. The MACD of -20.31 indicates Positive momentum. The RSI at 37.83 is Neutral, neither overbought nor oversold. The STOCH value of 14.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TERASOFT.
Tera Software Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | ₹4.78B | 15.31 | ― | ― | 20.39% | 11.63% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | ₹3.03B | 4.73 | ― | ― | -1.07% | 187.83% | |
60 Neutral | ₹3.96B | 19.62 | ― | 0.23% | 71.84% | 138.63% | |
56 Neutral | ₹1.35B | 63.14 | ― | 0.26% | 9.12% | 22.53% | |
54 Neutral | ₹1.53B | -6.20 | ― | 0.49% | 30.15% | 330.45% |
* Technology Sector Average
IN:TERASOFT
Tera Software Limited
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65.39%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.