Tera Software Ltd (TERASOFT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Covance Softsol

Onward Technolog

Tera Software

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Why is Tera Software Ltd ?

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.49 times

With a growth in Operating Profit of 1.79%, the company declared Very Positive results in Dec 25

The company has declared positive results for the last 4 consecutive quarters
PAT(Latest six months) Higher at Rs 12.93 cr
ROCE(HY) Highest at 16.83%
NET SALES(Q) At Rs 59.14 cr has Grown at 46.4% (vs previous 4Q average)

With ROCE of 14.9, it has a Very Attractive valuation with a 2.8 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 87.90%, its profits have risen by 155% ; the PEG ratio of the company is 0.1

Pledged Promoter shares have increased this quarter and currently stands at 21.65%

Consistent Returns over the last 3 years

Along with generating 87.90% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

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

88.59%

1.81

48.91%

Sensex

2.27%

0.18

12.28%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.64%

EBIT Growth (5y)

31.41%

EBIT to Interest (avg)

2.92

Debt to EBITDA (avg)

4.57

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

0.86

Tax Ratio

25.54%

Dividend Payout Ratio

Pledged Shares

21.65%

Institutional Holding

0.15%

ROCE (avg)

7.43%

ROE (avg)

9.11%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.06

EV to EBIT

14.33

EV to EBITDA

14.09

EV to Capital Employed

2.76

EV to Sales

2.19

PEG Ratio

0.13

Dividend Yield

0.31%

ROCE (Latest)

14.94%

ROE (Latest)

12.23%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

29What is working for the Company

PAT(Latest six months)

Higher at Rs 12.93 cr

ROCE(HY)

Highest at 16.83%

NET SALES(Q)

At Rs 59.14 cr has Grown at 46.4% (vs previous 4Q average

PBDIT(Q)

Highest at Rs 9.82 cr.

DEBTORS TURNOVER RATIO(HY)

Highest at 1.15 times

-7What is not working for the Company

INTEREST(Latest six months)

At Rs 3.53 cr has Grown at 22.15%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 6.27 cr

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Here's what is working for Tera Software

Profit After Tax (PAT) - Latest six months

At Rs 12.93 cr has Grown at 248.09%

Year on Year (YoY)

MOJO Watch

PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 59.14 cr has Grown at 46.4% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 40.41 Cr

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 9.82 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (Rs Cr)

Profit After Tax (PAT) - Latest six months

Higher at Rs 12.93 cr

than preceding 12 month period ended Dec 2025 of Rs 11.31 cr

MOJO Watch

In the half year the company has already crossed PAT of the previous twelve months

PAT (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Highest at 1.15 times

in the last five half yearly periods

MOJO 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 3.53 cr has Grown at 22.15%

over previous Half yearly period

MOJO 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 periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents