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Tera Software Limited (IN:TERASOFT)
:TERASOFT
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Tera Software Limited (TERASOFT) AI Stock Analysis

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IN:TERASOFT

Tera Software Limited

(TERASOFT)

Rating:61Neutral
Price Target:
₹312.00
▼(-4.99% Downside)
Tera Software Limited's overall stock score is driven by its strong financial performance, particularly in revenue growth and profitability improvements. However, technical indicators suggest a lack of momentum, and the valuation appears somewhat high. The absence of earnings call insights and corporate events limits additional context.

Tera Software Limited (TERASOFT) vs. iShares MSCI India ETF (INDA)

Tera Software Limited Business Overview & Revenue Model

Company DescriptionTera Software Limited (TERASOFT) is a technology company that operates primarily in the information technology and software development sectors. The company specializes in offering IT solutions, software services, and system integration services. Tera Software serves a diverse range of industries, including government, healthcare, finance, and telecommunications, providing customized solutions that leverage the latest technological advancements.
How the Company Makes MoneyTera Software Limited generates revenue through multiple streams. The company earns money by providing software development services, where it designs and implements customized software solutions tailored to client needs. Additionally, Tera Software engages in system integration projects, which involve integrating various IT systems and ensuring their seamless operation. The company also provides IT consulting services, advising organizations on best practices and strategies for technology implementation. Key partnerships with government bodies and enterprise clients contribute significantly to its revenue. Furthermore, Tera Software may engage in maintenance contracts and support services, providing ongoing assistance and updates to ensure the optimal performance of their solutions.

Tera Software Limited Financial Statement Overview

Summary
Tera Software Limited shows a positive financial trajectory with strong revenue growth and improved profitability metrics. The balance sheet is stable with a solid equity ratio and reduced debt-to-equity ratio, although significant liabilities pose leverage risks. Cash flow has improved but remains volatile, requiring careful management.
Income Statement
75
Positive
Tera Software Limited has shown a commendable improvement in profitability metrics over the years. The gross profit margin has increased significantly from previous years, indicating better cost management or pricing strategies. The company also experienced a robust revenue growth rate of approximately 27% in the most recent year, reflecting strong business expansion. Net profit margin has improved considerably, showcasing enhanced operational efficiency. However, fluctuations in EBIT and EBITDA margins suggest some instability in operational performance, which might need addressing.
Balance Sheet
68
Positive
The company's balance sheet is relatively stable with a healthy equity ratio of around 57%, indicating a solid financial foundation. The debt-to-equity ratio has been reduced over the years, which is a positive sign of decreasing financial risk. Return on equity has improved, showing that the company is using its equity base effectively to generate profits. Nonetheless, the presence of significant liabilities in relation to assets suggests potential leverage risks that need careful management.
Cash Flow
62
Positive
Cash flow analysis reveals mixed results. The company has managed to turn around its free cash flow from previous deficits to a positive figure, indicating improved cash management. The operating cash flow to net income ratio is favorable, suggesting strong cash generation from operations. Yet, the fluctuations in free cash flow growth rates over the years indicate potential volatility in cash generation, which may pose challenges for future capital investments.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.08B1.07B844.83M1.17B1.26B1.56B
Gross Profit891.95M888.07M658.40M957.74M99.08M77.02M
EBITDA163.00M163.01M92.63M152.94M86.48M82.83M
Net Income90.81M94.15M34.41M34.66M-13.02M8.43M
Balance Sheet
Total Assets2.13B2.13B2.07B1.97B2.74B2.98B
Cash, Cash Equivalents and Short-Term Investments217.65M217.65M202.89M160.08M100.41M137.74M
Total Debt199.27M199.27M334.59M241.53M605.42M546.15M
Total Liabilities908.60M908.60M948.31M893.93M1.67B1.90B
Stockholders Equity1.22B1.22B1.12B1.08B1.07B1.09B
Cash Flow
Free Cash Flow0.0067.35M-50.26M325.27M-212.41M-368.82M
Operating Cash Flow0.0068.10M-48.76M327.62M-212.41M-368.82M
Investing Cash Flow0.006.27M5.05M32.33M5.37M11.65M
Financing Cash Flow0.00-173.24M64.48M-300.27M169.72M336.30M

Tera Software Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price328.40
Price Trends
50DMA
302.56
Positive
100DMA
277.82
Positive
200DMA
239.78
Positive
Market Momentum
MACD
5.57
Negative
RSI
65.08
Neutral
STOCH
88.16
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TERASOFT, the sentiment is Positive. The current price of 328.4 is above the 20-day moving average (MA) of 298.70, above the 50-day MA of 302.56, and above the 200-day MA of 239.78, indicating a bullish trend. The MACD of 5.57 indicates Negative momentum. The RSI at 65.08 is Neutral, neither overbought nor oversold. The STOCH value of 88.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:TERASOFT.

Tera Software Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
₹3.92B10.81
-27.51%278.69%
65
Neutral
₹3.66B22.96
20.57%10.91%
64
Neutral
₹2.56B18.89
0.78%28.66%20.93%
61
Neutral
$35.51B8.11-11.05%1.89%8.55%-8.72%
61
Neutral
₹4.11B37.39
28.53%103.86%
57
Neutral
₹1.97B
0.43%
₹894.13M21.46
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:TERASOFT
Tera Software Limited
328.40
258.40
369.14%
IN:AARTECH
Aartech Solonics Ltd.
58.42
-18.37
-23.92%
IN:DCI
Dc Infotech And Communication Ltd
258.50
-82.60
-24.22%
IN:DEVIT
Dev Information Technology Ltd
45.36
-7.48
-14.16%
IN:INSPIRISYS
lnspirisys Solutions Limited
97.44
-46.66
-32.38%
IN:PULZ
Pulz Electronics Ltd.
41.00
-41.02
-50.01%
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.Date of analysis: Aug 26, 2025