ScoreWhy is Tera Software Ltd ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.49 times
2
With a growth in Net Sales of 118.17%, the company declared Outstanding results in Sep 25
- The company has declared positive results for the last 3 consecutive quarters
- PBT LESS OI(Q) At Rs 7.89 cr has Grown at 186.4% (vs previous 4Q average)
- ROCE(HY) Highest at 16.83%
- OPERATING PROFIT TO INTEREST(Q) Highest at 6.03 times
3
With ROCE of 14.9, it has a Attractive valuation with a 4.1 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 156.53%, its profits have risen by 132.4% ; the PEG ratio of the company is 0.3
4
Market Beating performance in long term as well as near term
- Along with generating 156.53% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Tera Software should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Tera Software for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Tera Software
160.73%
3.45
46.04%
Sensex
4.84%
0.41
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-7.14%
EBIT Growth (5y)
20.10%
EBIT to Interest (avg)
3.43
Debt to EBITDA (avg)
4.57
Net Debt to Equity (avg)
0.17
Sales to Capital Employed (avg)
0.86
Tax Ratio
24.84%
Dividend Payout Ratio
0
Pledged Shares
18.20%
Institutional Holding
0.03%
ROCE (avg)
7.43%
ROE (avg)
9.11%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
38
Industry P/E
28
Price to Book Value
4.66
EV to EBIT
27.64
EV to EBITDA
27.23
EV to Capital Employed
4.13
EV to Sales
3.99
PEG Ratio
0.29
Dividend Yield
0.20%
ROCE (Latest)
14.94%
ROE (Latest)
12.23%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend42What is working for the Company
PBT LESS OI(Q)
At Rs 7.89 cr has Grown at 186.4% (vs previous 4Q average
ROCE(HY)
Highest at 16.83%
OPERATING PROFIT TO INTEREST(Q)
Highest at 6.03 times
PBDIT(Q)
Highest at Rs 9.65 cr.
PAT(Q)
Highest at Rs 6.56 cr.
DEBTORS TURNOVER RATIO(HY)
Highest at 1.15 times
NET SALES(Q)
Highest at Rs 71.43 cr
EPS(Q)
Highest at Rs 5.24
-8What is not working for the Company
INTEREST(9M)
At Rs 4.49 cr has Grown at 54.83%
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 6.27 cr
Loading Valuation Snapshot...
Here's what is working for Tera Software
Net Sales - Quarterly
At Rs 71.43 cr has Grown at 147.3% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 28.88 CrMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 7.89 cr has Grown at 186.4% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 2.76 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 6.56 cr has Grown at 131.9% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 2.83 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 6.03 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit (PBDIT) - Quarterly
Highest at Rs 9.65 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 7.89 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 6.56 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 71.43 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 5.24
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Debtors Turnover Ratio- Half Yearly
Highest at 1.15 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Tera Software
Interest - Latest six months
At Rs 3.60 cr has Grown at 79.10%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 6.27 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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