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Last Updated: April 2, 2026, 3:47 am
Author: Getaka|Social: XLinkedIn

Tera Software Ltd: Intrinsic Value & Share Price Analysis

Fair Value

₹131.18Overvalued by 58.09%vs CMP ₹313.00

P/E (19.0) × ROE (8.0%) × BV (₹107.00) × DY (0.32%)

₹163.20Overvalued by 47.86%vs CMP ₹313.00
MoS: -91.8% (Negative)Confidence: 63/100 (Moderate)Models: 1 Under, 8 Over
ModelCategoryValueWeightSignal
PE-ROEEarnings₹204.6624%Over (-34.6%)
Graham NumberEarnings₹198.7614%Over (-36.5%)
Earnings PowerEarnings₹7.9212%Over (-97.5%)
DCFCash Flow₹389.2312%Under (+24.4%)
Net Asset ValueAssets₹107.278%Over (-65.7%)
EV/EBITDAEnterprise₹53.6310%Over (-82.9%)
Earnings YieldEarnings₹164.108%Over (-47.6%)
ROCE CapitalReturns₹142.778%Over (-54.4%)
Revenue MultipleRevenue₹43.236%Over (-86.2%)
Consensus (9 models)₹163.20100%Overvalued
Key Drivers: EPS CAGR 56.0% lifts DCF — verify sustainability. | Wide model spread (₹8–₹389) — high uncertainty.

PE-ROE · Graham · EPV · DCF · NAV · EV/EBITDA · DDM · Earnings Yield · ROCE Capital · Revenue Multiple | CoE: 12% · Terminal: 4% · EPS CAGR: 56.0%

*Investments are subject to market risks

Investment Snapshot

67
Tera Software Ltd scores 67/100 (Average)
Based on 5 dimensions: health, institutional flow, earnings quality, momentum, and peer comparison
Stock Health62/100 · Moderate
ROCE 11.3% AverageROE 8.0% AverageD/E 0.22 Low debtInterest Coverage 0.0x RiskyProfitable 3/5 years Mixed
Smart Money60/100 · Moderate
FII holding up 0.14% (6mo) Slight increasePromoter holding at 47.5% Stable
Earnings Quality55/100 · Moderate
OPM expanding (0% → 10%) ImprovingWorking capital: 266 days Capital intensive
Quarterly Momentum100/100 · Strong
Revenue (4Q): +102% YoY AcceleratingProfit (4Q): +155% YoY StrongOPM: 16.6% (up 4.5% YoY) Margin expansion
Industry Rank55/100 · Moderate
P/E 19.0 vs industry 98.1 Cheaper than peersROCE 11.3% vs industry 14.9% AverageROE 8.0% vs industry 21.0% Below peers

Weights: Health 30% · Earnings Quality 25% · Momentum 20% · Industry Rank 15% · Smart Money 10%. Scores are computed from reported financials and recalculated daily. Not investment advice.

Tera Software Ltd Investor Signals

Computed from valuation, cash flow, balance sheet, ownership and quarterly trend data already available in this stock page.

Value Trap Score
70/100
High
Derived from: Cheapness + weak quality + weak cash support
Current data: P/E 19.0 vs Ind 98.1 | ROCE 11.3% | ROE 8.0% | CFO/NP N/A
Balance Sheet Stress
20/100
Comfortable
Derived from: Leverage + debt servicing + liquidity + debt trend
Current data: D/E 0.22x | IntCov 0.0x | Current 1.93x | Borrow/Reserve 0.24x
Cash Flow Reliability
43/100
Mixed
Derived from: Cash backing of earnings + working capital pressure
Current data: CFO ₹0 Cr | NP ₹9 Cr | CFO/NP N/A
Ownership Accumulation
+25
Neutral
Derived from: FII + DII + promoter direction, adjusted by crowding
Current data: FII +0.11 pp | DII N/A | Prom 0.00 pp
Business Momentum
-8
Watch closely
Derived from: Latest quarter sales + profit + OPM change
Current data: Q Sales -17.2% | Q NP -2.9% | Q OPM +3.1 pp
Derived FieldValueHow it is derived
Valuation Gap %-47.9%((Fair Value - CMP) / CMP) × 100
Borrowings / Reserves0.24xLatest borrowings divided by latest reserves
CFO / Net ProfitN/ALatest operating cash flow divided by latest net profit
FII Change+0.11 ppLatest FII% minus previous FII%
DII ChangeN/ALatest DII% minus previous DII%
Promoter Change0.00 ppLatest promoter% minus previous promoter%
Shareholder Count Change+355Latest shareholder count minus previous count
Quarterly Sales Change-17.2%Latest quarter sales vs previous quarter sales
Quarterly Profit Change-2.9%Latest quarter net profit vs previous quarter net profit
Quarterly OPM Change+3.1 ppLatest quarter OPM minus previous quarter OPM

Share Price and Basic Stock Data

Last Updated: April 2, 2026, 3:47 am

Market Cap 391 Cr.
Current Price 313
Intrinsic Value₹163.20
High / Low 599/196
Stock P/E19.0
Book Value 107
Dividend Yield0.32 %
ROCE11.3 %
ROE8.04 %
Face Value 10.0
PEG Ratio0.34

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Tera Software Ltd

Competitors

Stock Name ⇩Market Cap ⇩Current Price ⇩High / Low ⇩Stock P/E ⇩Book Value ⇩Dividend Yield ⇩ROCE ⇩ROE ⇩Face Value ⇩
Tera Software Ltd 391 Cr. 313 599/19619.0 1070.32 %11.3 %8.04 % 10.0
ABM Knowledgeware Ltd 416 Cr. 208 325/15329.4 1200.60 %8.62 %6.78 % 5.00
Subex Ltd 421 Cr. 7.46 17.3/6.61128 5.730.00 %6.44 %11.3 % 5.00
Trejhara Solutions Ltd 341 Cr. 145 300/14053.6 1030.00 %2.99 %1.82 % 10.0
Cybertech Systems & Software Ltd 337 Cr. 108 275/95.310.2 61.93.70 %19.4 %14.9 % 10.0
Industry Average17,316.11 Cr418.4898.13120.780.77%14.90%21.00%6.77

All Competitor Stocks of Tera Software Ltd

Quarterly Result

MetricSep 2022Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025
Sales 26.4819.4421.1720.7323.1424.8525.3423.8933.5632.7471.4359.14
Expenses 26.1917.6419.1519.6121.2621.4123.0321.0129.9125.2361.7749.33
Operating Profit 0.291.802.021.121.883.442.312.883.657.519.669.81
OPM % 1.10%9.26%9.54%5.40%8.12%13.84%9.12%12.06%10.88%22.94%13.52%16.59%
Other Income 0.841.08-0.500.901.061.290.621.081.030.940.950.97
Interest 1.760.930.740.660.750.671.111.120.892.001.601.93
Depreciation 0.060.040.040.040.040.040.040.030.040.110.170.21
Profit before tax -0.691.910.741.322.154.021.782.813.756.348.848.64
Tax % 5.80%58.64%125.68%15.91%12.56%31.84%29.78%22.78%21.33%26.66%25.68%26.27%
Net Profit -0.730.79-0.181.111.882.741.262.182.954.656.566.37
EPS in Rs -0.580.63-0.140.891.502.191.011.742.363.725.245.09

Last Updated: March 3, 2026, 2:20 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: February 26, 2026, 3:16 am

MetricMar 2023Mar 2024Mar 2025TTM
Sales 13184108197
Expenses 1417795166
Operating Profit -1071231
OPM % -8%8%11%16%
Other Income 25344
Interest 6346
Depreciation 0001
Profit before tax 961228
Tax % 60%36%24%
Net Profit 34921
EPS in Rs 2.773.137.5216.41
Dividend Payout % 0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2023-20242024-2025
YoY Net Profit Growth (%)33.33%125.00%
Change in YoY Net Profit Growth (%)0.00%91.67%

Tera Software Ltd has shown a consistent positive trend in YoY Net Profit Growth (%) in the last 2 years from 2023-2024 to 2024-2025.

Growth

Compounded Sales Growth
10 Years:%
5 Years:%
3 Years:%
TTM:29%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:96%
Stock Price CAGR
10 Years:26%
5 Years:62%
3 Years:97%
1 Year:363%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:8%

Last Updated: September 5, 2025, 1:41 pm

Balance Sheet

Last Updated: December 4, 2025, 2:05 am

MonthMar 2023Mar 2024Mar 2025Sep 2025
Equity Capital 13131313
Reserves 95100110121
Borrowings 24332029
Other Liabilities 656171128
Total Liabilities 197207213290
Fixed Assets 27272729
CWIP 0000
Investments 0000
Other Assets 171181187261
Total Assets 197207213290

Reserves and Borrowings Chart

Cash Flow

MonthMar 2023Mar 2024Mar 2025
Cash from Operating Activity + 33-37
Cash from Investing Activity + 311
Cash from Financing Activity + -306-17
Net Cash Flow 64-10
Free Cash Flow 36-37
CFO/OP -273%-62%57%

Free Cash Flow

MonthMar 2023Mar 2024Mar 2025
Free Cash Flow-34.00-26.00-8.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2023Mar 2024Mar 2025
Debtor Days 357537462
Inventory Days
Days Payable
Cash Conversion Cycle 357537462
Working Capital Days 171271266
ROCE %8%11%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025
Promoters 47.53%47.53%47.53%47.53%47.53%47.53%47.53%47.53%47.53%47.53%47.53%47.53%
FIIs 0.00%0.00%0.00%0.00%0.00%0.01%0.00%0.00%0.00%0.00%0.03%0.14%
Public 52.45%52.46%52.45%52.46%52.46%52.45%52.46%52.45%52.47%52.45%52.43%52.32%
No. of Shareholders 16,68316,12415,82617,49217,57917,40515,99216,82715,75715,27915,50215,857

Shareholding Pattern Chart

No. of Shareholders

Tera Software Ltd: Intrinsic Value & Share Price Analysis - Shareholder trend analysis

This stock is not held by any mutual fund.

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 25Mar 24Mar 23
FaceValue 10.0010.0010.00
Basic EPS (Rs.) 7.522.752.77
Diluted EPS (Rs.) 7.522.752.77
Cash EPS (Rs.) 7.632.872.96
Book Value[Excl.RevalReserv]/Share (Rs.) 97.8689.9186.21
Book Value[Incl.RevalReserv]/Share (Rs.) 97.8689.9186.21
Revenue From Operations / Share (Rs.) 86.0367.52104.54
PBDIT / Share (Rs.) 13.068.4212.19
PBIT / Share (Rs.) 12.958.3012.00
PBT / Share (Rs.) 9.894.906.92
Net Profit / Share (Rs.) 7.522.752.77
NP After MI And SOA / Share (Rs.) 7.522.752.77
PBDIT Margin (%) 15.1812.4611.66
PBIT Margin (%) 15.0512.2811.48
PBT Margin (%) 11.497.256.61
Net Profit Margin (%) 8.744.072.64
NP After MI And SOA Margin (%) 8.744.072.64
Return on Networth / Equity (%) 7.683.053.21
Return on Capital Employeed (%) 12.948.6913.13
Return On Assets (%) 4.411.651.75
Long Term Debt / Equity (X) 0.010.040.04
Total Debt / Equity (X) 0.160.290.22
Asset Turnover Ratio (%) 0.510.000.00
Current Ratio (X) 2.011.941.93
Quick Ratio (X) 2.011.941.93
Inventory Turnover Ratio (X) 4561.180.000.00
Interest Coverage Ratio (X) 4.313.682.40
Interest Coverage Ratio (Post Tax) (X) 3.492.691.54
Enterprise Value (Cr.) 241.0170.3445.52
EV / Net Operating Revenue (X) 2.240.830.34
EV / EBITDA (X) 14.756.682.98
MarketCap / Net Operating Revenue (X) 2.150.670.28
Price / BV (X) 1.890.500.34
Price / Net Operating Revenue (X) 2.150.670.28
EarningsYield 0.040.060.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

About the Company - Qualitative Analysis

Tera Software Ltd. is a Public Limited Listed company incorporated on 26/09/1994 and has its registered office in the State of Telangana, India. Company's Corporate Identification Number(CIN) is L72200TG1994PLC018391 and registration number is 018391. Currently Company is involved in the business activities of Computer programming activities. Company's Total Operating Revenue is Rs. 107.64 Cr. and Equity Capital is Rs. 12.51 Cr. for the Year ended 31/03/2025.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwareMCH No: 8-2-293/82/A/1107, Road No.55, Plot No.1107, Hyderabad Telangana 500033Contact not found
Management
NamePosition Held
Mr. T GopichandChairman & Managing Director
Mr. T Madhu MitraWhole Time Director
Mr. T Bapaiah ChowdaryNon Executive Director
Mr. Divakar AtluriIndependent Director
Prof. (Dr) Braja Bandhu NayakIndependent Director
Mrs. V Usha RaniIndependent Director

FAQ

What is the intrinsic value of Tera Software Ltd and is it undervalued?

As of 05 April 2026, Tera Software Ltd's intrinsic value is ₹163.20, which is 47.86% lower than the current market price of ₹313.00, suggesting the stock is overvalued. This is calculated using the PE ratio method factoring in ROE (8.04 %), book value (₹107), dividend yield (0.32 %), and 5-year EPS CAGR.

What is the current share price and 52-week range of Tera Software Ltd?

Tera Software Ltd is trading at ₹313.00 as of 05 April 2026, with a FY2026-2027 high of ₹599 and low of ₹196. The stock is currently in the middle of its 52-week range. Market cap stands at ₹391 Cr..

How does Tera Software Ltd's P/E ratio compare to its industry?

Tera Software Ltd has a P/E ratio of 19.0, which is below the industry average of 98.13. Trading at a steep discount to peers could signal a value opportunity or reflect concerns about the company's fundamentals.

Is Tera Software Ltd financially healthy?

Key indicators for Tera Software Ltd: ROCE of 11.3 % is moderate. Dividend yield is 0.32 %.

Is Tera Software Ltd profitable and how is the profit trend?

Tera Software Ltd reported a net profit of ₹9 Cr in Mar 2025 on revenue of ₹108 Cr. Compared to ₹3 Cr in Mar 2023, the net profit shows an improving trend.

Does Tera Software Ltd pay dividends?

Tera Software Ltd has a dividend yield of 0.32 % at the current price of ₹313.00. The company pays dividends, though the yield is modest.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Tera Software Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE
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